ARC JOINERY & PROJECT MANAGEMENT LIMITED

Executive Summary

ARC Joinery & Project Management Limited demonstrates a low risk profile based on its positive net assets, liquidity, and compliance status despite its short operating history and micro-entity scale. Key risks to monitor include the lack of diverse management, limited operational scale, and the absence of detailed profitability data. Overall, the company appears financially stable for its size, but further financial details and operational insights are recommended for a comprehensive risk assessment.

ARC JOINERY & PROJECT MANAGEMENT LIMITED - Analysis Report

Company Number: SC730291

Analysis Date: 2025-07-29 16:30 UTC

1. Risk Rating: LOW
   The company exhibits a solid net asset position with positive working capital and no overdue filings, suggesting low immediate financial risk. The balance sheet reflects growing equity and manageable liabilities for a recently incorporated micro-entity.

2. Key Concerns:

• Limited Operating History: Incorporated in 2022, the company has only two full years of financial data, which limits trend analysis and long-term risk assessment.
• Single Director and Shareholder: Governance is concentrated in one individual (Mr. John Brown), which may pose succession or control risks.
• Small Scale and Micro Category: Minimal fixed assets and employee count (1 employee) indicate limited operational scale, which may impact business sustainability and resilience to market shocks.

3. Positive Indicators:

• Strong Liquidity Position: Cash balances have increased year-on-year (£15,125 to £17,602) and exceed current liabilities, resulting in healthy net current assets (£9,808 in 2024).
• Growing Equity Base: Net assets increased from £8,541 (2023) to £13,491 (2024), demonstrating retained earnings growth and capital stability.
• Compliance: All statutory filings including accounts and confirmation statements are up to date with no overdue returns or penalties, indicating good regulatory compliance.

4. Due Diligence Notes:

• Review Turnover and Profit & Loss Details: The abridged accounts do not include the profit and loss account. Obtaining full P&L data is essential to assess profitability, margins, and operational cash flow trends.
• Validate Revenue Recognition Policies: The notes describe contract-based revenue recognition; verify that estimates of contract completion and related costs are reliable and consistent.
• Assess Dependence on Key Person: Given the sole director/shareholder structure, investigate contingency plans for management continuity and any related party transactions.
• Confirm Customer Concentration and Credit Risk: Debtors are low but review customer base diversity and credit terms to evaluate liquidity risk further.