4AR HOLDINGS LTD

Executive Summary

4AR HOLDINGS LTD is a very small micro-entity with limited financial resources and modest net assets but maintains a positive working capital position. The company’s creditworthiness is constrained by its minimal scale and leverage relative to equity, warranting cautious credit terms with close monitoring of liquidity and director oversight. Continued assessment of cash flow generation and debt levels will be critical to managing credit risk.

4AR HOLDINGS LTD - Analysis Report

Company Number: 12433864

Analysis Date: 2025-07-20 14:19 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   4AR HOLDINGS LTD is a micro-entity engaged in buying and selling its own real estate. The company shows modest net assets (£358 as of Jan 2024) with a positive but small working capital position (£2,382). The business is very small, with no employees and minimal share capital (£3), indicating limited operational scale. The recent change in director control to Mr Anieq Riaz, who holds majority ownership and full control, suggests a consolidation of management which could improve oversight. However, the company carries non-current liabilities (£2,024) that exceed its net assets, indicating some leverage risk. Given the limited financial scale and modest liquidity, credit should be extended with caution and subject to ongoing monitoring of cash flow and debt servicing capacity.

2. Financial Strength:
   The balance sheet reflects a small asset base primarily consisting of current assets (£5,952) against current liabilities of £3,570, yielding a positive net current asset position. However, the presence of creditors due after one year (£2,024) reduces total net assets. The net assets increased from £57 in 2023 to £358 in 2024, indicating some improvement in equity, but the absolute figures remain very low. The company’s small size and minimal capital base limit its financial resilience, and the leverage level relative to net assets requires careful consideration.

3. Cash Flow Assessment:
   The company does not report cash explicitly but current assets are low, and creditors due within a year are significant relative to assets. The working capital, while positive, is small and declining from prior years (3,919 in 2023 to 2,382 in 2024). The absence of employees suggests low operating costs, but the limited liquidity and small asset base imply potential vulnerability to cash flow shocks. There is no indication of trading turnover or profitability, which raises concerns about the company’s ability to generate consistent cash flow to service debt or obligations.

4. Monitoring Points:

• Quarterly review of cash flow statements and liquidity position to ensure timely payment of current liabilities.
• Watch for any increase in non-current liabilities or deterioration in net assets.
• Monitor director changes and governance, especially given recent restructuring of control.
• Assess any filing of accounts beyond micro-entity thresholds that might reveal more detailed financials.
• Confirm business activity is ongoing and generating revenue to support debt servicing.