AARNETTE SOLUTIONS LTD

Executive Summary

Aarnette Solutions Ltd is a newly formed private limited company in the construction installation sector showing compliance with filing requirements and modest positive liquidity. However, relatively low net assets against hire purchase debt and deferred tax provisions present medium solvency risk in absence of a longer operating history. Careful review of operational cash flow and liabilities is recommended to confirm financial stability and sustainability.

AARNETTE SOLUTIONS LTD - Analysis Report

Company Number: SC760390

Analysis Date: 2025-07-29 12:26 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (less than 1.5 years) and has filed accounts on time with no overdue returns, indicating compliance. However, net assets are modest (£4,634) relative to current and long-term liabilities, and deferred tax provisions indicate some complexity in tax matters. The limited operating history and small equity base suggest moderate risk from a solvency and liquidity perspective at this stage.

2. Key Concerns:

• Modest net asset position (£4,634) combined with significant long-term hire purchase liabilities (£25,816) and provisions for deferred tax (£8,256) could pressure solvency if cash flows do not materialize as expected.
• The company operates with a sole director/shareholder, which may concentrate control and decision-making risk.
• The business is in the “Other construction installation” SIC code, an industry often sensitive to economic cycles and cash flow timing; limited operating history means no proven track record of operational stability.

3. Positive Indicators:

• All statutory filings are up-to-date with no overdue accounts or confirmation statements, reflecting good regulatory compliance.
• Positive net current assets (£5,683) and some cash reserves (£12,741) suggest short-term liquidity is currently sufficient to meet immediate obligations.
• The director affirms going concern status, and the company holds tangible fixed assets (£33,023), indicating some capital investment in operational capacity.

4. Due Diligence Notes:

• Review the company’s detailed cash flow and profit and loss statements (not filed publicly yet) to evaluate revenue generation and operating margins.
• Investigate the nature and terms of hire purchase contracts to assess repayment schedules and potential refinancing risks.
• Clarify the deferred tax provision drivers and assess any pending tax liabilities or exposures that may impact future cash flows.
• Explore the director’s experience and capacity given the single-person management structure and its impact on governance and operational continuity.
• Monitor subsequent filings for signs of growth or deterioration in financial metrics as the company matures beyond initial startup phase.