ARC DESIGN PROJECTS LIMITED

Executive Summary

Arc Design Projects Limited exhibits a stable and improving financial profile for a micro-entity, with positive working capital and growing equity supporting its ability to meet obligations. The company is creditworthy for small to moderate credit facilities, with liquidity adequate but requiring ongoing monitoring to manage current liabilities. Overall, management appears capable, and the business is positioned to service debt under current conditions.

ARC DESIGN PROJECTS LIMITED - Analysis Report

Company Number: 13166271

Analysis Date: 2025-07-20 12:14 UTC

1. Credit Opinion: APPROVE
   Arc Design Projects Limited, a micro-entity in the construction of domestic buildings sector, demonstrates a stable financial position and improved net current assets over the last two years. The company shows no overdue filings and is active with no legal or insolvency concerns. The presence of positive working capital and increasing shareholders' funds supports its ability to meet short-term obligations and service debt. Given its current scale and financial health, the company is creditworthy for modest credit facilities.

2. Financial Strength:
   The balance sheet reflects growth from £25,243 (2023) to £38,576 (2024) in total net assets, indicating strengthening equity and retained earnings. Fixed assets increased slightly to £7,056, suggesting some investment in long-term resources. Current assets rose significantly to £170,981, while current liabilities increased to £139,461, resulting in a positive net current asset (working capital) position of £31,520. The capital base is modest (£1,000 share capital) but adequately supported by retained earnings. The overall financial structure is sound for a micro business with low gearing concerns.

3. Cash Flow Assessment:
   The company’s current assets exceed current liabilities by a comfortable margin, providing sufficient liquidity to cover short-term debts. The increase in net current assets implies improved cash or receivables management. However, given the relatively high current liabilities for the scale of the business, ongoing monitoring of cash conversion cycles and creditor terms is recommended to prevent liquidity stress. No audit was conducted, so reliance is on unaudited accounts, but no red flags are evident.

4. Monitoring Points:

• Monitor growth in current liabilities relative to current assets to ensure working capital remains positive.
• Track cash flow from operations to confirm the company can maintain liquidity without external support.
• Observe any changes in directors or significant control that may affect governance or credit risk.
• Watch for timely filing of future accounts and confirmation statements to maintain compliance and transparency.
• Consider the impact of the wider construction market conditions on business resilience.