ARCO: LEARN AND MAKE LTD

Executive Summary

ARCO: LEARN AND MAKE LTD is a recently incorporated micro-entity with minimal financial resources and no trading history, resulting in a very weak credit profile. The balance sheet shows a fragile financial position with negligible net assets and limited working capital, raising significant concerns about its ability to service debt. Without demonstrated cash flow generation or equity strengthening, credit facilities cannot be recommended at this time.

ARCO: LEARN AND MAKE LTD - Analysis Report

Company Number: 14569348

Analysis Date: 2025-07-29 13:04 UTC

1. Credit Opinion: DECLINE
   ARCO: LEARN AND MAKE LTD is a very young micro-entity with minimal financial history and extremely limited net assets (£1). The balance sheet shows only modest net current assets (£300) and accruals nearly offsetting this buffer, indicating very thin working capital. There is no evidence of revenue, profitability, or cash flow generation yet. Given the lack of financial strength, trading history, or diversified management, the company currently lacks the capacity to service any meaningful credit facilities. The director is also the sole shareholder, which concentrates control but limits external oversight or financial robustness.

2. Financial Strength:
   The company’s financial position is fragile. Total assets less current liabilities stand at just £300, primarily current assets of £1,174 against current liabilities of £874. The net asset value is only £1, reflecting start-up capital. Accruals and deferred income of £299 further reduce tangible net assets. There are no fixed assets or retained earnings. This limited equity base and lack of reserves highlight a weak balance sheet with minimal financial cushion.

3. Cash Flow Assessment:
   Current assets are very low and no detailed breakdown is provided but likely consists of cash or receivables. Current liabilities are almost as high as current assets. This tight working capital position signals potential liquidity stress if any unexpected obligations arise. The company’s ability to generate positive operating cash flow is unproven, with only one employee (the director) and no audit or external financial assurance.

4. Monitoring Points:

• Monitor subsequent annual accounts for revenue growth and profitability.
• Watch cash flow statements for operating cash generation and liquidity improvements.
• Track any increase in net assets or shareholders’ funds indicating capital injections or retained earnings.
• Review director’s conduct and any changes in ownership or management that could affect governance.
• Check for timely filing of accounts and confirmation statements to ensure compliance.