Company Number: 12658240

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

1. Credit Opinion: CONDITIONAL APPROVAL. Arise Housing Ltd is a micro-entity operating in residential care with a very small share capital (£1.00) and a history of negative net assets indicating accumulated losses. The company’s net liabilities increased from £10,114 in 2023 to £16,698 in 2024, reflecting ongoing losses and weakening equity. Current liabilities exceed current assets (£32,403 vs £20,705 in 2024), resulting in a working capital deficit. However, the company remains active, filing on time, with stable employee numbers (9) and directors known with no adverse records. The company’s ability to meet short-term obligations appears stretched, so credit extension should be limited and closely monitored, with conditions such as regular financial updates and possibly personal guarantees or collateral.

2. Financial Strength: Balance sheet shows a negative net asset position for 5 consecutive years, indicating the company has been operating at a loss and eroding equity. The negative shareholders’ funds of £16,698 as of June 2024 show weak financial resilience. Current liabilities are substantial relative to current assets, causing negative net current assets in prior years but a slight improvement in 2024 due to reclassification of some liabilities. The company lacks fixed assets (not reported), so no tangible collateral is available. Share capital is nominal and does not provide cushion against losses.

3. Cash Flow Assessment: Current assets mainly comprise cash and receivables but are insufficient to cover current liabilities, indicating potential liquidity risk. The decline in current assets from £42,915 in 2023 to £20,705 in 2024 suggests cash outflows or receivables issues. Negative working capital means the company may struggle to meet short-term debts without additional financing or improved collections. No data on operating cash flows or profit and loss is available but persistent negative equity implies ongoing operational losses or cash burn.

4. Monitoring Points:

• Watch for improvement or further deterioration in net current assets and net liabilities in next filings.
• Monitor cash flow statements or management reports for liquidity trends.
• Keep track of debtor days and creditor payment terms to assess working capital management.
• Review director and shareholder activity for any changes that may impact control or financial support.
• Confirm timely filing of accounts and confirmation statements continues.
• Evaluate any changes in business model or contracts that could affect revenue stability.