ARCUS SYSTEMS LTD

Executive Summary

Arcus Systems Ltd has demonstrated a positive turnaround in its financial position in the latest year after several years of negative net assets and working capital. While the company is small and operates with limited fixed assets and personnel, it maintains compliance and shows signs of improving solvency. Investors should focus on understanding the sustainability of recent improvements and operational risks associated with a micro-entity structure.

ARCUS SYSTEMS LTD - Analysis Report

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.