ARTIS EQUIPMENT LTD

Executive Summary

ARTIS EQUIPMENT LTD has demonstrated significant financial distress over recent years, with increasing negative equity and worsening net current liabilities. Despite compliance with filing requirements, the company's liquidity and solvency risks are elevated, necessitating careful due diligence on operational performance and creditor exposure before considering investment.

ARTIS EQUIPMENT LTD - Analysis Report

Company Number: 12517766

Analysis Date: 2025-07-29 14:04 UTC

1. Risk Rating: HIGH
   The company shows persistent and increasing negative shareholders’ funds and net current liabilities, indicating significant solvency and liquidity concerns. The extent of current liabilities exceeding current assets by a large margin signals difficulty in meeting short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: The company’s net current liabilities worsened from approximately £-110,608 in 2023 to £-169,629 in 2024, a substantial deterioration in working capital position.
• Increasing Creditors: Current liabilities nearly doubled from £116,514 in 2023 to £213,577 in 2024, suggesting growing short-term debt or unpaid obligations.
• Persistently Negative Shareholders’ Funds: Equity declined from £-107,681 in 2023 to £-167,229 in 2024, reflecting accumulated losses or capital erosion.

3. Positive Indicators:

• No Overdue Filings: Accounts and confirmation statements are up to date, indicating compliance with statutory filing and regulatory requirements.
• Active Status: The company is currently active and not under liquidation or administration.
• Stable Director Appointments: Two directors have been in place since 2020 and 2022, providing some continuity in governance.

4. Due Diligence Notes:

• Detailed Profit and Loss Review: As the profit and loss account was not filed publicly, obtaining internal or management accounts is critical to assess operational performance and the causes of losses.
• Examine Creditors: Analyze the nature and aging of the significant current liabilities to understand repayment terms and risk of default.
• Cash Flow Analysis: Investigate cash flow statements to evaluate operating cash generation and liquidity management.
• Director Background Checks: Verify the professional background and conduct records of directors, especially given the financial difficulties.
• Business Model and Market Position: Assess sustainability of operations given the negative equity and working capital position—review contracts, customer base, and market conditions.

Executive Summary
ARTIS EQUIPMENT LTD exhibits a high risk profile driven by increasing negative net current assets and shareholders’ funds, indicating strained liquidity and solvency. While statutory compliance is maintained, the financial position raises material concerns about the company’s ability to meet short-term obligations and sustain operations without intervention or capital infusion. Further investigation into profitability, creditor composition, and cash flows is essential to fully assess viability.