AARIB LTD

Executive Summary

AARIB LTD presents a high risk profile primarily due to its negative working capital and limited cash resources, which may challenge its short-term solvency. While the company has invested significantly in fixed assets and remains compliant with regulatory filings, lack of profitability disclosure and reliance on debtor balances necessitate further financial scrutiny. Prospective investors should seek comprehensive operational and cash flow data before committing capital.

AARIB LTD - Analysis Report

Company Number: 12815250

Analysis Date: 2025-07-19 11:56 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant liquidity risk, with current liabilities exceeding current assets by £22,770 as at 31 August 2024. This negative working capital position, combined with limited cash reserves (£14,830), raises concerns about the company’s ability to meet short-term obligations. The company's rapid growth from zero to substantial fixed assets and liabilities within a short period (incorporated in 2020) without clear profitability indicators further adds to operational risk.

2. Key Concerns:

• Liquidity Deficit: Net current liabilities of £22,770 indicate potential cash flow strain, risking delayed payments to suppliers and creditors.
• Unsecured Debtors: A large proportion of current assets (debtors £53,670) are owed by customers, which may be difficult to collect promptly, affecting liquidity.
• Lack of Profit and Loss Disclosure: Absence of a profit and loss account and no audit reduces transparency on operational profitability and cash generation capacity.

3. Positive Indicators:

• Asset Base Growth: Tangible fixed assets of £100,821 suggest investment in operational capacity, potentially supporting future revenue generation.
• Compliance with Filings: The company is current with its accounts and confirmation statement filings, reflecting regulatory compliance and governance diligence.
• Going Concern Statement: The director affirms going concern status, indicating management’s confidence in the company’s ability to sustain operations.

4. Due Diligence Notes:

• Obtain detailed profit and loss statements and cash flow forecasts to assess operational profitability and liquidity management.
• Investigate the nature and collectability of debtors, including aging analysis and credit risk.
• Understand the terms and maturity profile of current liabilities to determine urgency and refinancing risk.
• Review director and shareholder background for experience and financial support capacity.
• Evaluate lease and other contractual obligations to assess ongoing cost commitments.