Company Number: 12599165

Analysis Date: 2025-07-20 16:07 UTC

1. Risk Rating: LOW

Justification: ARTCRY LTD is a micro-entity limited by guarantee, with no turnover but stable and increasing net current assets and net assets, all held as current assets without liabilities. It has no overdue filings, no debt, and no audit exemptions issues, indicating solid compliance and no immediate solvency or liquidity concerns.

2. Key Concerns:

• Absence of turnover: The company has reported zero turnover consistently across all periods, which raises questions about the sustainability of operations and ability to generate income independently.
• Limited operational scale: The company has no employees and no fixed assets, relying presumably on grant income or donations, which could pose operational risks if funding sources become constrained.
• Concentration of control: One individual holds 50-75% voting rights and the right to appoint and remove directors, which could pose governance risks if not balanced by robust oversight.

3. Positive Indicators:

• Strong liquidity position: Current assets increased significantly to £36,848 (2024) with no current liabilities, demonstrating healthy working capital.
• Compliance and governance: All statutory filings, including accounts and confirmation statements, are up to date with no overdue submissions or penalties.
• Clear business purpose: The company operates as a small grants fund supporting artists, with transparent reporting and no indication of off-balance sheet liabilities or contingent risks.

4. Due Diligence Notes:

• Verify the nature and sustainability of funding sources, given zero turnover and reliance on other income reported as £37,584 for 2024.
• Assess the company's plans for achieving operational sustainability beyond grant or donation income.
• Review governance practices to ensure adequate checks and balances given the significant control held by one PSC.
• Confirm no hidden liabilities or contingent exposures not reflected in the micro-entity accounts.