Company Number: 12731906

Analysis Date: 2025-07-29 12:35 UTC

1. Credit Opinion: DECLINE
   Artifex Build Ltd presents significant credit risk. The company has moved from a modest positive net asset position (£10,581 in 2023) to a substantial net liability position (£-121,982 in 2024). Net current liabilities have worsened sharply from £-26,297 in 2023 to £-145,412 in 2024, indicating severe working capital constraints. The absence of long-term borrowings but the presence of substantial short-term creditors (£200k+) suggests liquidity stress. The company’s continued losses have eroded shareholder funds, raising doubts on its ability to service debt or meet commercial obligations without external capital injections.

2. Financial Strength:
   The balance sheet shows a deteriorating financial position. Fixed assets have been written down from £36,878 to £23,430, and intangible assets (goodwill) are being amortised, reducing net asset value. The company’s working capital position is highly negative, driven by low current assets (£54,869) against very high current liabilities (£200,281). The capital structure is weak, with shareholders’ funds deeply negative at £-121,982. No material long-term financing is evident, increasing reliance on short-term creditor funding.

3. Cash Flow Assessment:
   Cash at bank improved slightly to £14,891 from £3,588 in the prior year, but this is insufficient to cover the large current liabilities. Trade debtors have decreased dramatically (£11,800 vs. £79,880), possibly reflecting reduced sales or collection issues. Stocks/work-in-progress also declined significantly (£28,178 vs. £98,957), which may indicate lower ongoing contract activity or asset liquidation. Overall, cash flow appears constrained, with stretched payables and insufficient current asset coverage, indicating potential liquidity risk.

4. Monitoring Points:

• Monitor net current asset position and trends in working capital closely.
• Track cash flow forecasts and debtor collections to ensure liquidity sufficiency.
• Review contract pipeline and turnover trends given the reductions in debtors and stocks.
• Watch for any director or shareholder capital injections or restructuring plans.
• Assess any overdue creditor payments or defaults, which may signal worsening credit risk.