AR IT SUPPORT LIMITED

Executive Summary

AR IT SUPPORT LIMITED is a micro-entity operating in the competitive and rapidly evolving IT support services sector. The company has made notable financial improvements, moving from negative to positive net assets within four years, signaling operational stabilization. While well-positioned to serve localized IT support needs, its small scale and limited resources present challenges in competing against larger, more diversified firms in this dynamic industry.

AR IT SUPPORT LIMITED - Analysis Report

Company Number: 12691439

Analysis Date: 2025-07-29 16:09 UTC

1. Industry Classification
   AR IT SUPPORT LIMITED operates under SIC code 62090, classified as "Other information technology service activities." This sector broadly encompasses IT support services, system maintenance, network management, and other ancillary IT service functions. Key sector characteristics include a high dependency on skilled technical personnel, rapid technological change, and increasing demand driven by digital transformation initiatives across industries. The market is typically fragmented with a mix of micro, small, and medium enterprises serving local to national clients.

2. Relative Performance
   As a micro-entity since incorporation in 2020, AR IT SUPPORT LIMITED's financial profile aligns with typical early-stage IT service providers. The company has demonstrated a significant turnaround from a negative net asset position (£-7,723 in 2023) to a positive shareholders’ funds balance of £5,855 in FY 2024. Its fixed assets are modest (£6,591), consistent with an IT services firm that likely invests primarily in equipment and software rather than physical infrastructure. Current assets have more than doubled year-on-year from £15,376 to £34,672, coupled with improved net current assets from a deficit of £-7,394 to a surplus of £6,857, indicating enhanced liquidity and operational efficiency. However, the company remains small in scale compared to typical IT service providers, where turnover thresholds can reach up to £10M for small companies in this sector.

3. Sector Trends Impact
   The IT support sector is experiencing robust demand fueled by ongoing digital transformation, cloud adoption, cybersecurity needs, and remote working trends accelerated by the COVID-19 pandemic. There is a growing emphasis on managed IT services and proactive support solutions. However, competition is intense, with many players competing on service quality and specialized offerings. The sector also faces challenges such as rapid technology obsolescence and the need for continuous skills development. AR IT SUPPORT LIMITED’s recent financial improvements suggest it is capitalizing on these trends, but its micro status indicates limited scale to fully exploit market growth or invest extensively in innovation.

4. Competitive Positioning
   AR IT SUPPORT LIMITED appears to be a niche or small-scale player within the IT support services market. Its modest asset base and small workforce (average 3 employees) limit its capacity to compete with larger firms offering integrated IT solutions or extensive managed services. However, the company's improved financial health and positive net assets indicate operational resilience and potential for growth. Strengths include localized service delivery from Newport, Wales, which may offer competitive advantages in client proximity and personalized support. Weaknesses include limited financial resources and scale, which could constrain marketing reach, technological investments, and the ability to attract larger contracts. The ownership structure, with two directors holding majority control, may facilitate agile decision-making but could also limit external investment opportunities.