ARLITECH SOLUTIONS LTD

Executive Summary

Arlitech Solutions Ltd shows signs of financial distress with negative net assets and declining liquidity, raising solvency and operational sustainability concerns. While the company remains compliant with filing requirements and has a finance director in place, the significant drop in current assets and concentrated ownership structure warrant careful further investigation. Overall, the risk profile is high for potential investors.

ARLITECH SOLUTIONS LTD - Analysis Report

Company Number: 13155682

Analysis Date: 2025-07-20 13:50 UTC

1. Risk Rating: HIGH
   The company exhibits a negative net asset position with worsening liquidity indicators in the most recent year. The micro-entity financial statements show current liabilities exceeding current assets by £726 as of January 2024, indicating potential solvency issues.

2. Key Concerns:

• Negative Net Assets & Working Capital Deficit: The balance sheet shows net liabilities of £726 at the latest filing, a deterioration from previous years, suggesting the company’s liabilities exceed its assets.
• Declining Current Assets: A sharp reduction in current assets from £55,044 in 2023 to £859 in 2024 raises liquidity concerns, indicating possible cash flow stress or asset depletion.
• Concentration of Control & Director Changes: The company has significant ownership concentration (75-100% shares held by individual PSCs), coupled with multiple director resignations and appointments within a short timeframe, which could impact governance and operational stability.

3. Positive Indicators:

• Compliance with Filings: The company is current with its annual accounts and confirmation statement submissions, indicating regulatory compliance.
• Micro-entity Status: The company operates within a small scale, which may imply limited operational complexity and correspondingly lower risk exposure.
• Director with Finance Background: Presence of a finance director currently appointed may support better financial oversight.

4. Due Diligence Notes:

• Investigate the cause of the drastic decline in current assets between 2023 and 2024.
• Review cash flow statements and creditor payment history to assess ongoing liquidity and creditor relations.
• Examine the impact of director turnover on company strategy and control, including any related party transactions given the overlapping control profiles of PSCs.
• Assess any contingent liabilities or off-balance sheet obligations not reflected in micro-entity accounts.
• Validate operational business activities and revenue streams to confirm sustainability given the small employee base and limited asset base.