Company Number: 14226902

Analysis Date: 2025-07-19 13:03 UTC

1. Credit Opinion: DECLINE

ARCPRO LTD shows a persistently negative net asset position at the balance sheet date for two consecutive years (£-4,714 in 2023 and £-4,181 in 2024). This indicates the company is insolvent on a balance sheet basis, meaning liabilities exceed assets. The business has no employees, suggesting limited operational scale or activity. Without profits or capital injection, the capacity to service debt or meet credit obligations is highly questionable. The director is the sole shareholder, which may reduce external governance oversight. Overall, the financial risk is elevated and credit exposure is not recommended.

2. Financial Strength

The micro entity has low current assets (£4,172 in 2024) insufficient to cover current liabilities (£8,353), resulting in negative net current assets (£-4,181). The net liabilities position implies the company is technically insolvent. There is no indication of fixed assets or retained earnings. No accumulated profits or reserves are reported. The balance sheet shows no improvement trend from 2023 to 2024, only a slight reduction in net liabilities. The company operates in real estate management and commercial construction, but no operational scale is evident.

3. Cash Flow Assessment

With current liabilities nearly double current assets and no employees generating revenue, liquidity is severely constrained. The company lacks working capital to cover short-term obligations, which raises concerns about its ability to maintain operational continuity without external funding. No cash or equivalents detail is provided, but the negative net assets and current liabilities suggest cash flow challenges. The absence of trading profits or capital injections indicates limited internal cash generation or financial flexibility.

4. Monitoring Points

• Monitor any capital injections or shareholder loans that might improve solvency.
• Watch for updated accounts filing to detect any turnaround or worsening position.
• Review director conduct and any changes in management or PSC that could affect governance.
• Track payment performance on any credit facilities or trade payables, if available.
• Observe business activity or expansion efforts that might improve financials.