Risk Analysis: ARTEA TRADING LIMITED

1. Risk Rating: HIGH

The company exhibits technical insolvency based on the most recent available financial data, with negative net assets of £12 and net current liabilities of £12 as at 28 February 2018. The minimal share capital of £1 provides virtually no capital buffer, and current liabilities exceed current assets by a material margin relative to the company's size. However, it must be noted that the detailed financial data available is significantly outdated, with the last financial history point being 2018. The accounts made up to 28 February 2025 appear to have been filed, but the content is not available in this dataset, creating a substantial information gap.

2. Key Concerns

a) Technical Insolvency – Negative Net Assets As of February 2018, shareholders' funds stood at £-12, meaning total liabilities exceeded total assets. The company was balance-sheet insolvent. While director loans or creditor forbearance may sustain operations, this position raises serious questions about the company's ability to meet obligations as they fall due.

b) Severe Liquidity Deficit Current assets of £27 against current liabilities of £39 produced net current liabilities of £12. The current ratio was approximately 0.69:1, indicating the company could not cover its short-term debts from liquid assets. For a construction-related business (SIC 43120 – Site preparation), where cash flow timing mismatches are common, this is particularly concerning.

c) Minimal Capitalisation and Information Opacity With only £1 in share capital and micro-entity filing status, the company files the minimum legally required information. There is no P&L account, no cash flow statement, and no notes beyond statutory information. The seven-year gap in available financial data (2018 to 2025) means the current financial position is essentially unknown from this source.

3. Positive Indicators

• Active Filing Status: Accounts and confirmation statements are not overdue, suggesting the company remains compliant with statutory obligations. This indicates some level of ongoing administrative functioning.

• Continued Operation: The company has maintained active status since incorporation in 2015, suggesting it has not faced formal insolvency proceedings. Survival through to 2025, despite the 2018 balance sheet position, implies some form of ongoing viability—potentially through director support or revised trading conditions.

• Multiple Directors and Clear PSC: Three directors are registered, and the PSC (Laura Elizabeth Purvis) holds over 75% ownership, providing clarity on control structure. The PSC register appears complete and up to date.

4. Due Diligence Notes

1. Obtain 2019–2025 Accounts: The most critical gap is the absence of recent financial data. The 2018 position may have been resolved through capital injection, director loans, or improved trading. Without this information, any assessment is substantially speculative. Request the last six years of filed accounts directly from Companies House.

2. Investigate Director Loans and Related Party Balances: The 2018 creditors figure of £39 may include director loans. Micro-entity accounts do not require disclosure of related party balances. Understanding whether liabilities are owed to connected parties versus third-party creditors is essential for assessing solvency risk.

3. Verify Current Trading Activity: SIC code 43120 (Site preparation) suggests construction groundworks activity. Confirm whether the company is actively trading, the volume and nature of contracts, and whether it holds any plant, equipment, or vehicles not captured in the minimal asset figures. Construction companies may hold significant assets off-balance-sheet through hire purchase or lease arrangements.

4. Assess Director Conduct: Check the Insolvency Service database for any disqualification orders against Robert Samuel Greer, Elizabeth Greer, or Laura Elizabeth Purvis. Given the negative net assets position, understanding director history with other entities is prudent.

5. Confirm Creditor Composition: Determine whether the £39 liability in 2018 represented trade creditors, HMRC liabilities, or director loans. This distinction materially affects the assessment of solvency risk, as director creditors may be more flexible than trade or tax creditors.