Company Number: 14653936

Analysis Date: 2025-07-29 16:43 UTC

1. Credit Opinion: DECLINE. My Arena Consulting Limited is a newly incorporated private limited company (February 2023) operating in management consultancy (SIC 70229) but currently presents weak financial indicators. The company reported net current liabilities of £596 and negative shareholders' funds of £596 as at 28 February 2024, reflecting accumulated losses and insufficient working capital. There is minimal tangible asset backing (share capital of only £4). Given the company’s very early stage, negative net assets, and current liabilities exceeding current assets, repayment capacity is highly uncertain, posing elevated credit risk.

2. Financial Strength: The balance sheet shows net liabilities of £596 driven by current liabilities of £600 against current assets (debtors) of £4. No fixed assets or cash balances are reported. Shareholders' funds are negative, indicating the company is not yet profitable and has consumed capital. The small equity base and negative net assets highlight weak financial strength and limited buffer to absorb shocks or support borrowing. The company employs one person and has related party transactions (£45,000 consultancy fees) suggesting dependency on associated entities for revenue.

3. Cash Flow Assessment: The company’s liquidity position is poor with net current liabilities and virtually no liquid assets evident. Debtors are nominal (£4), and creditors exceed this by a large margin (£600). There is no indication of cash reserves or positive operating cash flow. The working capital deficit implies the company may struggle to meet short-term obligations without additional capital injections or external funding. The lack of profitability and cash generation raises concerns over ongoing viability without financial support.

4. Monitoring Points:

• Improvement in net current assets and positive shareholders’ funds to reduce credit risk.
• Generation of operating profits and positive cash flow to build liquidity.
• Changes in related party transactions and revenue diversification.
• Timely filing of accounts and confirmation statements to ensure compliance.
• Management’s ability to secure additional funding or capital contributions to strengthen financial position.