ARCH ELECTRICAL NORTH EAST LTD

Executive Summary

ARCH ELECTRICAL NORTH EAST LTD is a dormant company with no trading history or significant financial resources, presenting a high risk from an investment perspective. While it demonstrates compliance with statutory filings, the absence of operational data and minimal net assets raise concerns about its capacity to meet obligations and sustain business activities. Further due diligence on the company's plans and funding is essential before considering investment.

ARCH ELECTRICAL NORTH EAST LTD - Analysis Report

Company Number: 14836363

Analysis Date: 2025-07-29 16:18 UTC

1. Risk Rating: HIGH
   Justification: The company is newly incorporated and has filed dormant accounts with virtually no financial activity or assets (net assets of £1 and cash of £1). No trading history or revenues exist to support operational stability or repayment capacity. The sole director and shareholder controls the company fully, indicating concentrated ownership but no evidence of external funding or diversification.

2. Key Concerns:

• Absence of trading activity: Dormant status and negligible assets suggest the company has not commenced operations, raising questions on business viability and future cash flow.
• Lack of financial substance: Minimal cash and net assets imply no buffer for liabilities or operational expenses.
• Founder concentration risk: Single director/shareholder with full control could pose governance risks or limit strategic input.

3. Positive Indicators:

• Compliance with filing deadlines: Accounts and confirmation statements are up to date, indicating good regulatory compliance so far.
• Clear ownership and management structure: Transparent control by one individual simplifies accountability.
• Industry classification (electrical installation) is a well-understood sector with potential demand if the company begins trading.

4. Due Diligence Notes:

• Investigate the business plan and timeline for commencing trading to assess viability and projected cash flow generation.
• Verify whether any external funding or credit facilities have been secured or are planned to support operations.
• Review director background and financial standing to evaluate capacity to sustain the business during start-up phase.
• Monitor future filings for signs of operational activity, revenue generation, and asset acquisition.