ARC DEVELOPMENTS (SCOTLAND) LTD

Executive Summary

Arc Developments (Scotland) Ltd exhibits significant solvency and liquidity concerns, with current liabilities substantially exceeding current assets and a negative net asset position. While regulatory compliance is up to date and fixed assets are present, the absence of employees and limited operational history raise questions about sustainability. Further investigation into asset liquidity and business viability is recommended before considering investment.

ARC DEVELOPMENTS (SCOTLAND) LTD - Analysis Report

Company Number: SC712210

Analysis Date: 2025-07-29 18:02 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (£-1,498) with substantial current liabilities (£188,800) far exceeding current assets (£63,344), resulting in a negative working capital of £-91,913. This indicates significant solvency and liquidity risk.

2. Key Concerns:

• Liquidity Shortfall: Current liabilities are nearly three times current assets, with minimal cash (£4,510), signaling potential cash flow challenges meeting short-term obligations.
• Negative Net Assets: The company’s net liabilities position suggests insolvency on a balance sheet basis, raising concerns about financial stability and creditor risk.
• No Employees and Limited Operating History: Incorporated in late 2021 with no employees reported, the operational scale is minimal, which may affect revenue generation and sustainability.

3. Positive Indicators:

• Tangible Fixed Assets: The company holds fixed assets valued at £279,215, which may provide collateral value or operational capacity.
• No Overdue Filings: Accounts and confirmation statements are filed timely, indicating compliance with regulatory requirements.
• Established Directors and PSCs: Three directors and three persons with significant control are identified, showing clear governance structure and ownership transparency.

4. Due Diligence Notes:

• Investigate the nature and liquidity of tangible fixed assets and whether they can be leveraged or sold to improve cash position.
• Review the company's business model and revenue streams given the lack of employees and negative working capital.
• Confirm whether any contingent liabilities or off-balance-sheet debts exist that may exacerbate financial risk.
• Assess the company’s plans or strategies to address the negative equity and liquidity shortfall.
• Verify director backgrounds for any adverse records, though none are indicated here.