Company Number: 14708939

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

1. Credit Opinion: APPROVE
   We Are Arrow Ltd is a newly incorporated private limited company (established March 2023) operating in the manufacture of jewellery. The latest accounts to March 2024 show a small but positive net asset position (£38,020) and strong working capital (£41,655). There are no overdue filings or indication of distress. The company appears financially stable with adequate liquidity to meet short-term obligations. The directors have significant ownership and control, suggesting aligned management incentives. Given the limited trading history but sound initial financial footing, credit approval is recommended for modest facilities with normal monitoring.

2. Financial Strength:
   The balance sheet reflects total assets of £89,970 composed mainly of current assets (£82,380) and fixed assets (£7,590). Current liabilities stand at £40,725, while non-current liabilities are £11,225, resulting in net assets of £38,020. The company maintains positive shareholders’ funds entirely from retained earnings and share capital. The tangible fixed assets are minimal but appropriate for a small manufacturing operation. Overall, the financial position shows a solid equity base relative to liabilities and no signs of over-leverage.

3. Cash Flow Assessment:
   Cash holdings are strong at £76,571, representing the majority of current assets, which supports good liquidity. Debtors are low at £746, indicating limited credit risk from customers or early stage sales. Stock of £5,063 appears reasonable for inventory needs. The net current asset surplus of £41,655 provides healthy working capital cushioning. The company’s ability to cover short-term liabilities is comfortable, reducing the risk of cash flow constraints. No overdrafts or external borrowings are noted, implying self-funded operations to date.

4. Monitoring Points:

• Revenue growth and profitability trends as the company matures beyond its first year.
• Debtor days and stock turnover to ensure efficient working capital management.
• Any increase in long-term liabilities or external financing that could impact leverage.
• Directors’ continued involvement and governance practices.
• Industry sector risks such as raw material costs and consumer demand shifts affecting jewellery manufacturing.