ARTIS MACHINA LIMITED

Executive Summary

Artis Machina Limited demonstrates high financial risk due to negative net assets, zero turnover, and increasing losses within two years of incorporation. While regulatory compliance is maintained and the director has relevant financial expertise, significant liquidity and solvency concerns warrant thorough due diligence before investment consideration.

ARTIS MACHINA LIMITED - Analysis Report

Company Number: 14385321

Analysis Date: 2025-07-29 12:18 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns with net liabilities of £858 as of the latest accounts, no turnover recorded since incorporation, and a negative working capital position. This financial deterioration within two years of operation signals elevated risk to investors.

2. Key Concerns:

• Negative Net Assets and Working Capital: The net current liabilities of £1,078 and overall negative net assets indicate inability to meet short-term obligations from available assets.
• No Revenue Generation: Zero turnover for the entire reporting period raises questions about operational viability and sustainability.
• Increasing Losses with Limited Capital: A loss of £2,157 in 2024 following a £12,201 loss in 2023, coupled with minimal share capital (£13), suggests limited financial buffer and ongoing cash burn.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are up to date and not overdue, indicating adherence to regulatory obligations.
• Experienced Director: The sole director, Neil Bayett, is a Chartered Accountant with corporate expertise, potentially beneficial for financial management.
• No Director Disqualifications or Insolvency Proceedings: The company is active with no signs of legal or governance issues from the director’s profile or company status.

4. Due Diligence Notes:

• Investigate the nature and timing of the current liabilities (£1,081) to assess creditor exposure and repayment plans.
• Clarify the company’s business model and strategic outlook given lack of revenue and ongoing losses.
• Review cash flow statements, bank facilities, and funding sources to understand liquidity management.
• Confirm absence of off-balance sheet liabilities or contingent obligations not disclosed in micro-entity accounts.
• Explore whether the director plans capital injections or operational changes to restore financial health.