ARCADE INVESTMENT G LTD

Executive Summary

ARCADE INVESTMENT G LTD currently exhibits negative net assets and working capital deficits, indicating weak financial health and liquidity challenges. The company’s ability to service debt is questionable without substantial improvement or external support. Credit approval is not recommended at this time, with ongoing monitoring essential if conditions change.

ARCADE INVESTMENT G LTD - Analysis Report

Company Number: 14094195

Analysis Date: 2025-07-20 16:06 UTC

1. Credit Opinion: DECLINE
   ARCADE INVESTMENT G LTD shows a deteriorating financial position with net liabilities of £13,310 as of May 2024, down from positive net assets of £430 the previous year. Current liabilities significantly exceed current assets, indicating negative working capital and potential liquidity issues. The company is a micro-entity in the construction of domestic buildings sector, which can be capital intensive and subject to cyclical risks. Without evidence of improved cash flow or external financial support, the company currently lacks the financial strength to reliably service credit facilities.

2. Financial Strength:
   The balance sheet reveals a decline from net assets of £430 in 2023 to net liabilities of £13,310 in 2024. Current assets plunged from £12,937 to £811, while current liabilities increased from £6,965 to £12,500. Total creditors due after one year also doubled, suggesting increased debt burden without corresponding asset backing. Shareholder funds are negative, reflecting accumulated losses or capital withdrawals. This weak equity base undermines financial resilience.

3. Cash Flow Assessment:
   The company’s net current liabilities of £810 and low cash or equivalents (£811) raise concerns about meeting short-term obligations. Negative working capital implies reliance on external funding or delayed payments to suppliers. With only one employee, operational scale is minimal, but the inability to cover current liabilities from current assets indicates liquidity strain. No off-balance sheet liabilities were reported, but the limited cash buffer poses high risk for repayment capability.

4. Monitoring Points:

• Track quarterly cash flow and working capital position closely to detect further deterioration or improvement.
• Monitor accounts payable aging and creditor negotiations to assess liquidity management.
• Review any capital injections or loan restructuring proposals by directors.
• Observe sector developments impacting construction demand and potential revenue growth.
• Evaluate director conduct and governance given the negative equity trend.