AR INVESTMENTS NOTTINGHAM LTD

Executive Summary

AR INVESTMENTS NOTTINGHAM LTD exhibits financial strain with net liabilities and substantial long-term debt exceeding total assets, posing solvency concerns. While regulatory compliance and asset base stability are positive factors, the company’s leverage and negative equity warrant caution. Further investigation into debt terms, cash flow, and management strategy is recommended to fully assess financial viability.

AR INVESTMENTS NOTTINGHAM LTD - Analysis Report

Company Number: 12847812

Analysis Date: 2025-07-29 13:53 UTC

1. Risk Rating: HIGH
   The company shows negative net assets and a high level of long-term creditors relative to its total assets, indicating potential solvency issues.

2. Key Concerns:

• Negative Net Assets: The balance sheet reports net liabilities of £16,321 in 2024, worsening from £20,506 in 2023, signaling the company’s liabilities exceed its assets.
• High Long-Term Liabilities: Creditors due after one year stand at £273,646 against total assets of £257,325, reflecting heavy reliance on debt financing which may pressure future cash flows.
• Limited Financial Cushion: Despite a positive net current assets position (£155,113), the company’s working capital is primarily offset by significant non-current liabilities, raising concerns about long-term financial sustainability.

3. Positive Indicators:

• Consistent Fixed Assets: Fixed assets have increased since incorporation and remain stable at £412,438, suggesting investment in tangible assets that may support operations or collateral for financing.
• Timely Filing and Compliance: Accounts and confirmation statements are up to date with no overdue filings, demonstrating regulatory compliance and good governance on statutory obligations.
• Small, Stable Workforce: Maintaining only 2 employees may indicate a lean operational model reducing overhead costs.

4. Due Diligence Notes:

• Examine Nature and Terms of Long-Term Creditors: Identify creditor types, interest rates, maturity profiles, and any covenants attached to long-term debt to assess refinancing risk.
• Cash Flow Analysis: Review actual cash flow statements to assess liquidity beyond balance sheet snapshots, focusing on ability to service debt and meet operational expenses.
• Asset Valuation and Usage: Verify valuation basis and marketability of fixed assets and whether they are pledged as security, and assess if they generate sufficient income.
• Directors’ Strategy: Understand management plans for addressing negative equity and reducing leverage, including any capital injections or restructuring initiatives.
• Ownership and Control Details: No persons with significant control are listed; clarify shareholder structure and assess possible influence on company strategy.