ARIS NETWORKS LTD

Executive Summary

ARIS NETWORKS LTD, a micro private limited company active in telecommunications, shows a solvent and compliant financial position with positive net assets and no overdue filings. Its operations remain dependent on a single director and a small workforce, with a notable decrease in current assets that requires monitoring. Overall, the company presents a low-risk profile at this early stage, subject to further review of operational and liquidity details.

ARIS NETWORKS LTD - Analysis Report

Company Number: 14225602

Analysis Date: 2025-07-20 12:15 UTC

1. Risk Rating: LOW

Justification: ARIS NETWORKS LTD presents a stable financial position for a micro-entity in its second full year of operation. The company maintains positive net assets and net current assets, indicating an ability to meet short-term obligations. There are no overdue filings or regulatory compliance issues noted, and the going concern assumption has been explicitly stated with director support assured. The director’s sole control and active involvement also suggest operational continuity.

2. Key Concerns:

• Limited scale and single employee: As a micro-entity with only one employee and minimal fixed assets, operational capacity and scalability may be constrained, potentially impacting long-term sustainability.
• Reliance on sole director's support: The company’s going concern basis depends entirely on the director’s ongoing support without evidence of external funding or diversified management, which could pose risks if circumstances change.
• Declining current assets: Current assets decreased from £2,789 in 2023 to £1,448 in 2024, a significant reduction that warrants monitoring to ensure liquidity remains sufficient.

3. Positive Indicators:

• Positive net current assets (£970k) and net assets (£2,105k) reflect a solvent position with working capital exceeding current liabilities.
• Compliance with filing deadlines for both accounts and confirmation statements demonstrates sound regulatory governance.
• Clear ownership and control structure with the director holding 75-100% of shares and voting rights, simplifying decision-making and accountability.
• Preparation of accounts under micro-entity provisions reduces complexity and costs, appropriate for the company’s size.

4. Due Diligence Notes:

• Investigate the nature and sustainability of the company’s revenue streams and turnover, which are not disclosed here, to assess operational stability.
• Confirm the extent and form of the director’s financial support and whether any related party transactions or guarantees exist.
• Review cash flow statements, if available, to understand liquidity dynamics given the noted decrease in current assets.
• Verify any contingent liabilities or off-balance-sheet obligations that might impact solvency.
• Assess business plans or forecasts to determine growth potential and risk mitigation strategies beyond the sole director’s involvement.