ARA FT INVESTMENT LTD

Executive Summary

ARA FT INVESTMENT LTD shows significant financial distress characterized by negative equity and current liabilities exceeding cash on hand. While regulatory compliance is maintained, liquidity and solvency risks are high due to limited capital and operational scale. Further investigation into liabilities and business viability is recommended before considering investment.

ARA FT INVESTMENT LTD - Analysis Report

Company Number: 13159811

Analysis Date: 2025-07-20 12:41 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with negative net current assets and shareholders’ funds, indicating a deficit position. The limited cash reserves relative to current liabilities exacerbate liquidity risks. The absence of audit and minimal share capital further elevate the risk profile.

2. Key Concerns:

• Negative net current assets (£-6,326) and shareholders’ funds (£-6,327) demonstrate the company is insolvent on a balance sheet basis.
• Current liabilities (£15,468) substantially exceed cash holdings (£9,142), indicating potential liquidity difficulties meeting short-term obligations.
• The company is very small with minimal equity (only £1 share capital) and a single director who also controls majority shares, raising concerns about governance and capital adequacy.

3. Positive Indicators:

• The company is current with its statutory filings, including accounts and confirmation statements, suggesting compliance with regulatory requirements.
• The director affirms the company is a going concern, implying some confidence in operational continuity.
• The company operates in real estate letting (SIC 68209), a sector that can provide steady income streams if managed prudently.

4. Due Diligence Notes:

• Investigate the nature and terms of the £15,468 current liabilities to assess urgency and possibility of restructuring or settlement.
• Clarify the company’s business model and revenue generation capabilities, as turnover and profit/loss figures are not disclosed.
• Review any related party transactions, specifically the £550 payable to Homely Living Ltd, to determine potential financial dependencies or conflicts of interest.
• Confirm the director’s plans or financial support mechanisms to address the deficit and ensure ongoing solvency.
• Assess underlying asset quality and market conditions for the real estate portfolio, if any, to understand potential for value recovery or income generation.