ARC ONLINE SERVICES LIMITED

Executive Summary

Arc Online Services Limited shows a healthy and improving financial position with strong net current assets and growing equity despite its recent formation. The company presents low financial risk and adequate liquidity to support modest credit facilities. Continued monitoring of operational performance and financial disclosures is advised due to its micro entity status and limited trading history.

ARC ONLINE SERVICES LIMITED - Analysis Report

Company Number: 14378834

Analysis Date: 2025-07-29 16:39 UTC

1. Credit Opinion: APPROVE
   Arc Online Services Limited demonstrates a positive financial position with net assets increasing substantially from £2,592 in 2023 to £6,122 in 2024. The company maintains a healthy net current asset balance, indicating sufficient short-term liquidity to meet obligations. Although a micro-entity with limited operating history since incorporation in late 2022, the directors’ background as software engineers aligns with the IT services sector, supporting operational competence. No adverse filings or director conduct issues are present. Given the small size and recent establishment, credit limits should be modest and monitored, but the company is capable of servicing typical credit facilities.

2. Financial Strength:
   The balance sheet shows growth in fixed assets from £1,102 to £3,007 and current assets from £3,648 to £6,223 over the last year, while current liabilities rose moderately from £2,158 to £3,108. The resulting net current assets of £3,115 (up from £1,490) reflect solid working capital management. Total net assets rose by 136% year-on-year, indicating improving equity and capital reserves. The company is fully equity funded with no indication of long-term debt, which reduces financial risk.

3. Cash Flow Assessment:
   Current assets support the working capital needs and exceed current liabilities by a comfortable margin. The company’s liquidity position is stable with no signs of cash flow stress. The increase in net current assets suggests growing operational cash inflows or effective receivables and inventory management. As a micro-entity with only two employees (directors), cash outflows are likely limited, supporting ongoing solvency.

4. Monitoring Points:

• Track revenue growth and profitability trends as more financial data becomes available to confirm income sustainability.
• Monitor any increase in current liabilities or debt levels that could pressure liquidity.
• Observe directors’ transactions and related party dealings given their dual roles as owners and operators.
• Watch compliance with timely filings and any changes in ownership or control that might affect governance.
• Given the company’s micro status and short trading history, reassess credit limits after next full-year accounts filing.