ARTHX LIMITED

Executive Summary

Arthx Limited is a newly established internet retail company showing initial profitability and solid liquidity with net assets of £19,980 and cash holdings of £19,556. The company’s financial position supports credit approval with moderate risk, but close monitoring of cash flow and debtor management is advised due to its startup status and limited operating history.

ARTHX LIMITED - Analysis Report

Company Number: 15435842

Analysis Date: 2025-07-20 15:58 UTC

Credit Opinion:
APPROVE with caution. Arthx Limited is a newly incorporated private limited company (since January 2024) operating in retail sales via internet/mail order. The first set of financials (period ending January 2025) shows a positive retained earnings figure and net assets of £19,980, indicating initial profitability. Cash holdings of £19,556 and manageable current liabilities of £8,576 suggest adequate short-term liquidity. However, as a startup with limited operational history and a small scale, credit exposure should be moderate and monitored closely for any significant fluctuations in cash flow or receivables.

Financial Strength:
The balance sheet reflects a healthy net asset position of £19,980 supported by £9,000 in share capital and £10,980 in retained earnings (profits for the period). Current assets of £28,556 (cash and trade debtors) comfortably exceed current liabilities of £8,576, yielding positive net current assets and working capital. The company holds no long-term debt and relies on shareholder equity, which is typical for a start-up. The shareholder structure is balanced among three directors, all with significant control, which provides stability but also indicates concentration risk.

Cash Flow Assessment:
The company reports cash of £19,556, representing strong liquidity relative to short-term obligations. Trade debtors of £9,000 are relatively modest and should be monitored to ensure timely collection. Positive retained earnings indicate operational cash inflow during the first year. Given the current liabilities of £8,576 include tax and other creditors, the company’s working capital is sufficient to meet immediate payment obligations. However, as a new business, future cash flow volatility may be higher and should be watched closely.

Monitoring Points:

• Track quarterly cash flow statements to ensure ongoing liquidity, especially as the business scales.
• Monitor debtor aging to avoid cash collection delays that could strain working capital.
• Watch profitability trends in subsequent periods to confirm growth trajectory and ability to service debt.
• Assess any changes in shareholder structure or director involvement that could impact governance or decision making.
• Review compliance with filing deadlines and any emerging financial obligations.