ARVE DEVELOPMENTS LIMITED

Executive Summary

ARVE DEVELOPMENTS LIMITED is a small, privately controlled building development company showing recent profitability but with a notable reduction in liquid assets, which poses some liquidity risk. The company maintains good compliance and has a stable governance structure, albeit concentrated in a single director. Further due diligence on cash flow and operations is recommended to assess ongoing financial resilience.

ARVE DEVELOPMENTS LIMITED - Analysis Report

Company Number: 13131264

Analysis Date: 2025-07-20 11:43 UTC

1. Risk Rating: MEDIUM
   Justification: ARVE DEVELOPMENTS LIMITED is a micro-entity with modest turnover and net assets. The company shows a recent profitable period but also a significant decline in current assets from prior years, which raises some liquidity concerns. While there are no overdue filings and the company appears compliant, limited scale and financial resource constraints suggest moderate risk.

2. Key Concerns:

• Liquidity Reduction: Current assets have fallen sharply from £13,282 in 2023 to £1,529 in 2024, potentially indicating cash flow pressures or asset depletion.
• Low Asset Base: Fixed assets are minimal (£1,300) and net assets have decreased from £11,982 to £2,829, which could limit operational flexibility.
• Reliance on a Single Director/Owner: The sole director and 100% owner scenario concentrates control and business risk without evident diversification of expertise or governance.

3. Positive Indicators:

• Profitability Achieved: The company recorded a profit of £42,024 in the latest financial year, demonstrating operational capability to generate positive returns.
• Compliance and Timeliness: No overdue filings for accounts or confirmation statements, indicating good regulatory compliance and governance discipline.
• Micro-entity Status: Benefits from simplified reporting requirements reducing administrative burden, appropriate at current scale.

4. Due Diligence Notes:

• Investigate the cause of the significant reduction in current assets between 2023 and 2024, including cash balances and receivables.
• Review cash flow statements and creditor terms to evaluate liquidity sustainability going forward.
• Assess the business model and project pipeline for development activity (SIC 41100) to understand future revenue prospects.
• Confirm the absence of off-balance sheet liabilities or contingent risks not disclosed in the micro-entity accounts.
• Examine the director’s background and any potential related party transactions given sole control.