Company Number: 13219020

Analysis Date: 2025-07-29 14:35 UTC

1. Credit Opinion: APPROVE with conditions
   Artemis FM Ltd demonstrates a positive financial trajectory with substantial growth in net assets and working capital over the last three years. The company’s current asset base and increasing equity position indicate an improving ability to service its financial obligations. However, the significant increase in non-current liabilities (other creditors) warrants monitoring to ensure these do not impair liquidity. Approval is advised with a condition to review the nature and terms of long-term creditors and their impact on cash flow.

2. Financial Strength:
   The company’s net assets increased from £33,547 in 2021 to £138,492 in 2024, reflecting steady equity growth. Tangible fixed assets increased notably to £191,828, demonstrating investment in operational capacity. Current assets rose substantially to £497,979, driven primarily by trade debtors (£385,791) and stocks (£33,201). The balance sheet shows a strong working capital position of £232,790 at year-end 2024. However, the rise in non-current liabilities to £249,601 from £10,596 in 2023, mainly classified as other creditors, suggests increased long-term obligations which must be understood in detail.

3. Cash Flow Assessment:
   Cash balance is relatively low at £9,939 compared to trade debtors of £454,839, indicating potential cash conversion cycle risk. The company relies heavily on timely collection of receivables to meet short-term liabilities (£265,189). Positive net current assets and improved liquidity ratios suggest the company can service immediate obligations, but working capital management should be closely watched. The increase in long-term creditors could indicate external financing which may improve liquidity but requires scrutiny of repayment terms.

4. Monitoring Points:

• Debtor collection efficiency and ageing profile to ensure receivables convert to cash promptly.
• Nature and repayment schedule of non-current “other creditors” to assess long-term solvency risk.
• Profitability trends (not disclosed here) to confirm operational cash generation.
• Management of stock levels to avoid excess inventory tying up funds.
• Ongoing compliance with filing deadlines and corporate governance, given the company is young and growing.