Company Number: 15162921

Analysis Date: 2025-07-20 18:46 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ARRESS LTD is a newly incorporated micro-entity operating in the unlicensed restaurant and café sector. The company shows a positive net current asset position, but the scale is very small (£228 net assets) and limited financial history is available. The director holds full control, which simplifies governance but concentrates risk. Given the minimal asset base and early stage, credit facilities should be modest and subject to close monitoring of trading performance and cash flow development.

2. Financial Strength:
   The balance sheet as of 30 September 2024 shows current assets of £1,617 and current liabilities of £1,389, resulting in net current assets of £228, which also equals shareholders’ funds and net assets. There are no fixed assets or long-term liabilities reported. This indicates a very small capital base and limited financial buffer. The company’s micro-entity status and small staff number (2 employees) align with its early-stage and low complexity profile. The lack of tangible fixed assets limits collateral value for secured lending.

3. Cash Flow Assessment:
   With current assets slightly exceeding current liabilities, liquidity is positive but very tight. The working capital is minimal, suggesting limited cash reserves and potential vulnerability to short-term cash flow disruptions. No cash flow statements are available to assess operational cash generation. The company’s ability to meet short-term obligations depends heavily on ongoing trading and timely receipt of revenues. Early signs of cash flow stress should trigger proactive credit risk management.

4. Monitoring Points:

• Turnover and profitability trends in subsequent accounts filings to confirm business viability and growth trajectory.
• Cash flow statements and debtor aging to ensure sufficient liquidity.
• Director’s conduct and governance practices given single director control.
• Timely filing of future accounts and confirmation statements.
• Potential impact of market conditions on the hospitality sector, especially given economic sensitivities.