ARTIUS SOLUTIONS LTD

Executive Summary

Artius Solutions Ltd is currently exposed to high financial risk due to persistent negative working capital and heavy reliance on director loans. While recent financials show an improvement to positive net assets, liquidity challenges remain pronounced. Continued monitoring of insider funding and operational cash flows is essential to evaluate the company’s viability and risk to investors.

ARTIUS SOLUTIONS LTD - Analysis Report

Company Number: 13620798

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

1. Risk Rating: HIGH
   The company demonstrates significant solvency and liquidity risks. Despite a recent improvement in net assets, current liabilities still substantially exceed current assets, indicating ongoing working capital pressures.

2. Key Concerns:

• Negative Working Capital: The company’s net current assets remain deeply negative at £(10,356) as of 2024, which signals an inability to cover short-term liabilities with short-term assets. This worsens operational liquidity risk.
• Director Loans Dominance: A large portion of current liabilities (£9,168 in 2024) consists of loans from directors, raising concerns about financial stability and reliance on insider funding that may not be sustainable.
• Volatile Financial Position: The company swung from significant net liabilities (£12,584 in 2023) to modest net assets (£1,236 in 2024), which may reflect one-off events or accounting adjustments rather than stable profitability or cash flow.

3. Positive Indicators:

• Improved Net Asset Position: The company reversed a prior net liability position and now reports positive shareholders’ funds, indicating some recovery or capital injection.
• Compliance and Filing: No overdue accounts or confirmation statements were noted, suggesting good regulatory compliance and governance practices.
• Stable Employee Base: The company maintains a consistent headcount of 1 employee, which may imply controlled operational costs.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans, including repayment schedules and potential risks if the director withdraws support.
• Review detailed cash flow statements and profit & loss accounts (not provided) to assess operational cash generation and sustainability.
• Confirm the reasons behind the sharp change from negative to positive net assets between 2023 and 2024 (e.g., capital injection, asset revaluation, debt restructuring).
• Examine any contingent liabilities or off-balance-sheet obligations that might impact future solvency.
• Assess market conditions and contract pipeline within the engineering activities sector (SIC 71129) to gauge future revenue prospects.