ARCRAM LTD

Executive Summary

ARCRAM LTD is financially stable with positive short-term liquidity but currently inactive in generating revenue, leading to operating losses and capital reduction. Immediate focus on client acquisition and cost control is essential to improve financial health and support sustainable growth. The company’s outlook depends on reversing inactivity and building consistent revenue streams.

ARCRAM LTD - Analysis Report

Company Number: 13896604

Analysis Date: 2025-07-29 20:21 UTC

Financial Health Assessment for ARCRAM LTD

---

1. Financial Health Score: C (Fair)

ARCRAM LTD shows signs of early-stage financial development typical of a newly incorporated micro entity. The company maintains positive net current assets indicating a healthy short-term liquidity position, but the absence of turnover in the latest financial year and a recent loss signals initial operational challenges. The score reflects a stable but cautious outlook, with essential need for growth in revenues and cost control.

---

2. Key Vital Signs

Metric	2024 (£)	Interpretation
Turnover	0	No revenue generated this year; symptom of stalled business activity.
Profit / (Loss)	(1,681)	Operating loss indicating expenses exceeded income; early symptom of financial distress.
Current Assets	2,936	Cash or receivables available to cover short-term obligations; positive sign.
Current Liabilities	0	No short-term debts; good liquidity position.
Net Current Assets	2,936	Working capital is positive; company can meet immediate liabilities.
Net Assets	2,936	Positive net worth, but reduced from prior year, indicating asset depletion.
Shareholders’ Funds	2,936	Equity backing is modest; reduced from initial capital base.

Additional Context:

• No fixed assets; company is asset-light, possibly service-focused.
• No employees; low overheads but potentially limiting operational capacity.
• Company operates in management consultancy (SIC 70229), a sector reliant on client engagements which have not materialized this year.
• Sole director and 100% shareholder is Joshua David Cram, indicating centralized control.

---

3. Diagnosis

The financial "vital signs" reveal a company in its infancy grappling with zero revenue generation during the latest reporting period, which is a clear symptom of inactivity or delayed business development. The operating loss, though relatively small, suggests costs (materials or overheads) are not yet balanced by income, a common challenge for start-ups.

However, the company’s liquidity is "healthy" with positive working capital and no current liabilities, meaning it has sufficient short-term resources to cover debts and avoid imminent financial distress. The decline in net assets from £4,617 to £2,936 reflects some depletion of capital, possibly due to operating losses and minimal investment inflows.

Overall, the diagnosis is that ARCRAM LTD is financially stable but dormant or underutilized in terms of operational activity. The absence of turnover is the principal "symptom of distress" that must be addressed to improve financial health and ensure viability.

---

4. Recommendations

To improve financial wellness and transition from fragile to robust health, the following steps are advised:

• Client Acquisition & Revenue Generation: Prioritize marketing and networking efforts to secure consultancy contracts. Without incoming revenue, the company risks depleting cash reserves further.
• Cost Management: Review and minimize material costs and any discretionary spending to preserve capital during this start-up phase.
• Operational Capacity: Consider recruiting or outsourcing skilled personnel if workload increases, but maintain cost discipline.
• Financial Monitoring: Implement monthly cash flow forecasts to anticipate liquidity needs and avoid surprises.
• Strategic Review: Evaluate the business model and service offering to ensure market fit and competitive advantage.
• Explore Funding Options: If growth requires investment, consider small business loans, grants, or equity injections to bolster capital without risking insolvency.

These actions will address the core symptom of zero turnover and restore the company’s financial pulse to a stronger rhythm.

---