Company Number: 12665847

Analysis Date: 2025-07-20 16:10 UTC

1. Risk Rating: LOW to MEDIUM
   Arcus Systems Ltd shows a significant improvement in financial position from prior years, moving from net liabilities to positive net assets and net current assets in the latest year. The company remains a micro-entity with modest operations, which limits the scale of risk but also the buffer against financial distress. No overdue filings or compliance issues are evident.

2. Key Concerns:

• Historical negative net assets and working capital in the first three years (2021-2023) indicate past solvency and liquidity challenges that the company only recently overcame.
• Very limited fixed assets (£533) and low share capital (£100) suggest limited long-term financial resilience or collateral value.
• The company employs only one person (likely the director), which could pose operational continuity risks if key personnel issues arise.

3. Positive Indicators:

• Net current assets and net assets have improved substantially in the year ending 30 June 2024, indicating strengthening liquidity and solvency.
• No overdue filings or compliance breaches; the company is active and up to date with accounts and confirmation statements.
• The company operates in IT consultancy and services (SIC 62090, 62020), sectors that can be scalable and have low capital intensity, aligning with its micro-entity status.

4. Due Diligence Notes:

• Review the drivers behind the improved financial position in 2024 to assess sustainability (e.g., revenue growth, cost control, one-time events).
• Confirm cash flow status and working capital management given prior years’ deficits to understand ongoing liquidity risk.
• Investigate the customer base, contract stability, and revenue visibility given the small team size to assess operational stability and business continuity.
• Verify the absence of any director disqualifications or regulatory issues beyond what is publicly available.