AR WELDING & MOTORSPORT LTD

Executive Summary

AR Welding & Motorsport Ltd is a newly formed micro-entity with a straightforward ownership and financial structure. Its current financial position shows modest net assets and no overdue filings, indicating low immediate risk. However, limited operational history and reliance on director funding warrant monitoring as the company develops.

AR WELDING & MOTORSPORT LTD - Analysis Report

Company Number: 14617277

Analysis Date: 2025-07-29 19:27 UTC

1. Risk Rating: LOW
   The company is newly incorporated (2023) with a small but positive net asset position (£3,183) and no overdue filings. The absence of external borrowings and a single shareholder/director structure reduces complexity and immediate financial risk.

2. Key Concerns:

• Limited scale and financial data: As a micro-entity with one employee (the director) and minimal financial history, the company’s operational and revenue generation capacity cannot be fully assessed.
• Debtors balance is entirely represented by a director’s loan account (£4,289), indicating reliance on internal funding rather than third-party receivables. This may mask liquidity constraints if the director’s loan is not readily convertible to cash.
• Corporation tax creditor (£746) suggests a tax liability that must be met in the short term, which could pressure cash flow given the low current asset base (£4,289).

3. Positive Indicators:

• The company has no overdue statutory filings (accounts and confirmation statement are up to date), reflecting good compliance and governance discipline.
• Positive net current assets (£3,183) and net assets indicate the company is solvent at this early stage.
• The director and sole shareholder, Mr. Adam Rayner, holds full control, simplifying decision-making and accountability.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan account classified as debtors to assess liquidity and timing of repayments.
• Review turnover and profitability trends as the company develops beyond its first financial year to evaluate operational sustainability.
• Confirm ongoing compliance with tax filings and payments to prevent future liabilities from accumulating.
• Assess any reliance on a single director for both operational and financial support, which could pose risks if circumstances change.