Company Number: 14116719

Analysis Date: 2025-07-20 11:13 UTC

Financial Health Assessment Report for ARTEMY LTD (Year Ended 31 May 2024)

---

1. Financial Health Score: B

Explanation:
ARTEMY LTD demonstrates a solid financial position with growing net assets and healthy working capital. The company shows strong liquidity, evidenced by a substantial cash reserve relative to current liabilities. However, as a relatively young small private limited company (incorporated 2022), its financial data is limited and the absence of an income statement restricts a full profitability and operational efficiency assessment. The company is financially stable but still in an early growth phase, warranting cautious optimism.

---

2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£61,334	Healthy, increased from prior year
Cash at Bank	£59,849	Strong liquidity; cash covers current liabilities 2.5x
Debtors	£1,485	Low receivables relative to cash, indicating good collections
Current Liabilities	£24,341	Manageable short-term obligations
Net Current Assets (Working Capital)	£36,993	Positive and nearly doubled year-on-year, signaling good short-term financial health
Net Assets (Equity)	£40,979	Increased significantly from £21,667 in 2023, showing retained earnings growth
Shareholders' Funds	£40,979	Equal to net assets, indicating no hidden liabilities
Tangible Fixed Assets	£4,921	Moderate investment in plant and equipment
Provisions for Liabilities	£935	Small but increasing; should be monitored

Note: Turnover and Profit/Loss figures are not available as the company filed under the small companies exemption and did not submit an income statement.

---

3. Diagnosis: Financial Condition and Symptoms Analysis

• Liquidity ("Healthy Cash Flow"): The company’s cash reserves are robust, providing a liquidity buffer well above short-term debts. This suggests no immediate cash flow distress symptoms, which is a vital sign of good financial health.

• Working Capital ("Vitality of Operations"): Positive and increasing net current assets reflect the company’s ability to meet its short-term obligations comfortably and fund day-to-day operations without stress.

• Growth in Equity ("Strength in Reserves"): Shareholders’ funds have nearly doubled within a year, indicating profitable operations or capital injections. Retained earnings growth is a positive symptom of sustainable business performance.

• Asset Base ("Investment in Business Infrastructure"): Tangible fixed assets show growth, highlighting reinvestment in the business, which may support future expansion or operational efficiency.

• Receivables Management ("Healthy Receivables"): Low and decreasing debtor balances relative to cash suggest effective credit control and collections, minimizing risk of bad debts.

• Provisions ("Early Warning Signs"): An increase in provisions for liabilities, though still small, warrants attention as it may indicate emerging contingent liabilities or upcoming expenses.

• Age and Size ("Youthful but Growing"): As a company incorporated less than two years ago, ARTEMY LTD is still in its early stages. The positive trends so far are encouraging but need to be maintained.

• Governance: The sole director, Maria Jose Fajardo Praena, also holds full ownership and voting rights, which centralizes control but may limit governance diversity.

---

4. Recommendations for Financial Wellness Improvement

• Maintain Strong Liquidity Management: Continue prudent cash flow monitoring to ensure liquidity remains healthy, especially as the company grows.

• Prepare and Review Profitability Data Internally: Although exempt from filing an income statement, the company should internally track profit and loss to spot trends and cost control opportunities.

• Monitor Provisions and Contingent Liabilities: Investigate the nature of rising provisions and ensure adequate reserves to cover future liabilities, preventing surprise cash demands.

• Diversify Governance: Consider adding non-executive directors or advisors to provide broader perspectives and enhance strategic oversight.

• Plan for Growth Capital Needs: As the business expands, assess capital requirements to avoid over-reliance on short-term funding or owner’s personal funds.

• Strengthen Financial Reporting: When thresholds are met or growth accelerates, consider moving beyond filing exemptions to provide fuller transparency to stakeholders and creditors.

---

Medical Analogy Summary:

ARTEMY LTD's financial "vital signs" indicate a patient in good health with a strong pulse of cash flow and robust working capital. There are no immediate symptoms of financial distress, such as liquidity crunches or excessive debts. The company shows signs of "growth and healing" through increased equity and asset investment. Attention is needed on "provisions," which act like early warning symptoms, to prevent future complications.

---