RED ARROW RECOVERY LTD

Executive Summary

RED ARROW RECOVERY LTD is currently dormant with no trading activity, reflecting a financial state of rest with nominal net assets of £1. The company complies with filing obligations but shows no operational financial health indicators. To improve financial wellness, the company should initiate trading activities, establish working capital, and maintain compliance to transition into an active, financially viable business.

RED ARROW RECOVERY LTD - Analysis Report

Company Number: 15088983

Analysis Date: 2025-07-29 21:06 UTC

Financial Health Assessment: RED ARROW RECOVERY LTD

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1. Financial Health Score: Grade F

• Explanation: RED ARROW RECOVERY LTD is currently classified as a dormant company with minimal financial activity. Its net assets and shareholders’ funds stand at a nominal £1, reflecting essentially no operational business activity or financial transactions during the last financial year. The absence of revenue, expenses, liabilities, and cash flow means the company is not financially active, which severely limits any meaningful assessment of financial health. Dormant status suggests the company is in a state of financial inactivity rather than operational vitality, hence the grade F reflecting "no active financial health".

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2. Key Vital Signs

Metric	Value	Interpretation
Company Status	Active, Dormant	Legally operating but no trading or financial activity detected
Net Assets	£1	Nominal equity indicating no accumulated profits or assets
Shareholders Funds	£1	Reflects paid-up share capital only, no retained earnings
Account Category	Dormant	No significant transactions during the financial year
Filing Compliance	Up to date	Accounts and returns filed on time, no penalties
Director	Single director, also 100% owner	Centralized control, no governance complexity
Industry Classification	Transportation support (SIC 52290)	Industry segment potentially capital intensive, but company inactive

Interpretation:
The vital signs show a company in a state of dormancy, akin to a patient in deep rest, showing no active metabolic or financial function. The sole asset is the nominal share capital, with no operating cash flow, no liabilities, no revenue streams, and no expenses reported. This is typical for a newly incorporated company that has yet to commence trading or one that has been intentionally kept inactive.

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3. Diagnosis: Financial Condition Assessment

• Dormant status: RED ARROW RECOVERY LTD has not engaged in any financial transactions since incorporation. The company’s balance sheet is essentially a snapshot of its initial incorporation capital (£1 ordinary share).
• No trading history: The absence of turnover, expenses, and liabilities means there are no symptoms of financial distress or health — simply a lack of activity.
• Governance and compliance: The company is compliant with statutory filing requirements, which is a positive sign indicating good regulatory health even in dormancy.
• Business outlook: No indication of operational progress or investment; the company is in a "hibernation" stage.

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4. Recommendations: Steps to Improve Financial Wellness

• Commence trading or operational activities: To shift from dormancy to active status, start generating revenue streams aligned with the transportation support industry. This will create "healthy cash flow" and establish financial data for future analysis.
• Prepare for initial operational costs: Budget for setup expenses, including administrative, regulatory, and operational costs, to avoid sudden financial shocks.
• Maintain strict regulatory compliance: Continue timely filing of accounts and confirmation statements to avoid penalties, which can be a financial and reputational burden.
• Consider capital injection: If intending to trade, ensure sufficient working capital either via equity or debt to cover initial working capital needs.
• Engage financial planning early: Adopt basic financial controls and planning to monitor cash flow as operations start, which prevents "symptoms of distress" from sudden liquidity issues.
• Review business model: Confirm that the SIC classification (transportation support) aligns with planned activities and regulatory requirements to avoid misclassification risks.

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