Company Number: 13239156

Analysis Date: 2025-07-29 14:34 UTC

1. Risk Rating: HIGH
   Justification: Arjon Holdings Limited exhibits persistent negative net current assets and shareholders' funds over multiple years, indicating ongoing solvency challenges. The company’s current liabilities consistently exceed current assets, with minimal cash reserves, raising concerns about liquidity to meet short-term obligations.

2. Key Concerns:

• Negative Shareholders' Funds: The company reported shareholders’ funds of approximately -£3,815 at the end of 2023, worsening from previous years, which signals accumulated losses or insufficient capitalization.
• Liquidity Pressure: Cash reserves are extremely low (£358 at year-end 2023) compared to current liabilities (£205,887), and net current liabilities are negative, indicating potential cash flow difficulties.
• Reliance on Group Balances: Debtors and creditors primarily relate to group undertakings, with significant amounts owed by and to related parties. This concentration risk could impact operational stability if intercompany financing or support is disrupted.

3. Positive Indicators:

• Timely Compliance: The company is up to date with both accounts filing and confirmation statements, indicating good regulatory compliance.
• Stable Management: Directors have been in place since incorporation with no noted disqualifications or governance issues, suggesting stable leadership.
• Small Entity Reporting: The company benefits from simplified reporting requirements consistent with its size, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the nature and collectability of intercompany debtor balances (£201,514) to assess their recoverability and impact on liquidity.
• Clarify the company’s business model and revenue generation capacity given the holding company classification and lack of income statement data filed.
• Review the group structure and financial health of related entities to evaluate support mechanisms and risk of contagion.
• Confirm the company’s plans for addressing negative equity and sustaining operations given ongoing losses.
• Assess cash flow forecasts and funding arrangements to ensure ability to meet current liabilities.