ARNOLD CLUTCH & GEARBOX CENTRE LTD

Executive Summary

ARNOLD CLUTCH & GEARBOX CENTRE LTD presents a low solvency and liquidity risk profile based on its improving net asset position and timely statutory compliance. The micro-entity status limits detailed financial visibility, warranting further review of profitability and cash flow metrics. Operational stability appears sound, but the small scale and limited asset base should be considered in evaluating long-term sustainability.

ARNOLD CLUTCH & GEARBOX CENTRE LTD - Analysis Report

Company Number: 12906108

Analysis Date: 2025-07-29 12:59 UTC

1. Risk Rating: LOW
   The company demonstrates a solid net asset position that has improved significantly over recent years. Current assets exceed current liabilities by a comfortable margin, indicating good short-term liquidity. There are no overdue filings or indications of regulatory non-compliance.

2. Key Concerns:

• Limited Scale and Micro Entity Status: As a micro-entity with minimal disclosures, detailed financial insights such as profitability and cash flow are unavailable, limiting deeper risk assessment.
• Concentration Risk: Single director and low employee count may raise operational continuity concerns if key personnel are unavailable.
• Modest Fixed Asset Base: Fixed assets are relatively low and have decreased compared to prior years, which may constrain operational capacity or growth potential.

3. Positive Indicators:

• Improved Net Assets and Working Capital: Net assets increased from £9,104 in 2023 to £16,351 in 2024, and net current assets improved substantially from £97 to £10,965, reflecting strengthened financial stability.
• On-Time Compliance: All statutory accounts and confirmation statements have been filed timely with no overdue filings, indicating good governance and compliance standards.
• Stable Operational Footing: The company has maintained a consistent employee count and director since incorporation, suggesting operational stability in its niche vehicle maintenance sector.

4. Due Diligence Notes:

• Profitability and Cash Flow: Request management accounts or profit and loss statements to assess operational profitability and cash flow dynamics, as these are not included in micro-entity filings.
• Customer and Supplier Concentration: Investigate dependencies on specific clients or suppliers that may impact revenue stability.
• Operational Risks: Review the impact of the relatively low fixed asset base on service delivery capability and potential capital expenditure plans.
• Director Background: Although no disqualifications are noted, confirming the director’s experience and capacity to manage growth or operational risks would be prudent.