ARKER DESIGN AND CONSULTANCY LIMITED

Executive Summary

Arker Design and Consultancy Limited is a start-up with modest financial resources and a negative working capital position. While the directors appear competent, limited trading history and tight liquidity require careful credit management and ongoing monitoring. Conditional approval is recommended, with emphasis on improving cash flow and working capital metrics before any increased credit exposure.

ARKER DESIGN AND CONSULTANCY LIMITED - Analysis Report

Company Number: 15041806

Analysis Date: 2025-07-29 15:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Arker Design and Consultancy Limited is a newly incorporated private limited company with its first financial year ending August 2024. The company is currently showing net current liabilities of £310 and modest shareholders’ funds of £423. Given the infancy of the business, limited trading history, and current working capital shortfall, credit should be extended cautiously and preferably with limits and monitoring in place. The directors’ backgrounds (teacher and accountant) suggest some financial stewardship, but lack of operational track record and small asset base warrant conditional terms.

2. Financial Strength:

• Fixed assets are minimal (£733 net book value), indicating limited capital investment so far.
• Current assets total £4,736, mainly debtors (£3,750) and cash (£986).
• Current liabilities are £5,046, exceeding current assets and resulting in negative working capital of £310.
• Share capital is nominal (£150), and retained earnings are small (£273).
• Overall net assets stand at £423, reflecting a small and early stage balance sheet.
• No audit has been performed, and financial statements are unaudited, increasing uncertainty.

3. Cash Flow Assessment:

• Cash on hand is low (£986), which could limit the company’s ability to meet immediate obligations.
• Debtors represent a significant portion of current assets but may not be fully liquid or collectible immediately.
• Negative net current assets indicate potential short-term liquidity pressures.
• The company must demonstrate improving cash flows and debtor collection efficiency to ensure sustainability.

4. Monitoring Points:

• Track improvement in working capital position, specifically reduction of current liabilities and increase in cash reserves.
• Monitor debtor aging and collection performance to mitigate liquidity risk.
• Assess profitability and retained earnings growth in subsequent filings to confirm business viability.
• Watch for timely filing of statutory returns and accounts to ensure compliance and transparency.
• Observe any changes in director appointments or significant control that might affect governance.