Company Number: 12382599

Analysis Date: 2025-07-20 12:51 UTC

1. Credit Opinion: DECLINE
   Atelier 18 Ltd demonstrates weak financial health with persistent net current liabilities and declining net assets over the past years. The company’s current liabilities exceed current assets by a significant margin (£45,566 negative working capital as of March 2024), indicating liquidity stress and potential difficulties meeting short-term obligations. Despite being active with no overdue filings, the company’s financial trajectory is concerning, showing erosion of shareholder funds from £5,592 in 2023 to £1,294 in 2024. The absence of an income statement and lack of profitability data further complicate confidence in repayment ability. Therefore, without additional credit support or guarantees, extending credit is not advisable.

2. Financial Strength:
   The company’s balance sheet reveals limited financial strength. Fixed assets have decreased from £64,185 in 2023 to £53,532 in 2024, while current assets also fell from £64,765 to £49,018. Current liabilities remain high at £94,584, although slightly reduced from £114,897 the previous year. The company’s net assets stand at a minimal £1,294, showing very thin equity cushioning. Deferred tax provisions have decreased, but still represent a liability of £6,672. The company’s minimal share capital (£2) further underscores the fragile capital base.

3. Cash Flow Assessment:
   Cash on hand has decreased from £44,155 in 2023 to £32,368 in 2024, reducing liquidity buffer. Negative net current assets signify working capital deficiency, which may impair the company’s ability to pay suppliers and short-term creditors timely. Debtors have dropped significantly to £4,677 from £11,275, which could indicate tightening credit terms or reduced sales, but also reduces cash inflows. Trade creditors are relatively low at £900, but other creditors remain substantial at £70,462. Overall, the cash flow position appears constrained, with insufficient liquid resources to cover immediate liabilities.

4. Monitoring Points:

• Monitor working capital changes, especially current assets versus current liabilities.
• Track cash balances and trends in debtor collections to assess liquidity improvement or deterioration.
• Review any forthcoming financial statements that include profit/loss data to understand earnings capacity.
• Watch for any changes in credit terms from suppliers or increases in overdue payables.
• Keep an eye on deferred tax provisions and any changes in tax liabilities that could impact cash flow.