A C WILSON LIMITED

Executive Summary

A C Wilson Limited operates as a small-scale agricultural grower focused on vegetables and cereals, showing a notable financial turnaround within two years of incorporation. While the company faces typical sector challenges such as working capital constraints and exposure to input cost volatility, its investments in tangible assets and profitability improvement indicate sound operational management. Positioned as a niche player, A C Wilson Limited must continue to manage liquidity risks while leveraging sector trends toward mechanisation and sustainable production to strengthen its competitive stance.

A C WILSON LIMITED - Analysis Report

Company Number: 14016962

Analysis Date: 2025-07-29 15:50 UTC

1. Industry Classification
   A C Wilson Limited operates primarily under SIC codes 1130 and 1110, which correspond to the agricultural sector focused on "Growing of vegetables and melons, roots and tubers" and "Growing of cereals (except rice), leguminous crops and oil seeds." This sector is characterised by seasonal production cycles, dependency on climatic conditions, and fluctuating commodity prices. Businesses in this classification typically require investment in land, machinery, and skilled labour, with profitability influenced by yield efficiency, cost control, and access to distribution channels.

2. Relative Performance
   As a private limited company incorporated in March 2022, A C Wilson Limited is a micro to small-sized enterprise, with two directors and a small workforce of two employees. The financials for the year ending March 2024 show fixed assets of £75,755 and current assets of £39,838, with net current liabilities of £38,213, resulting in net assets of £22,849. This is a substantial improvement from the prior year’s net liabilities of £1,348. The company reported a turnaround with a profit of £36,197 in 2024 after a loss in 2023, and paid dividends of £12,000, indicating positive cash flow management despite a low cash balance (£425).

Compared to typical small agricultural enterprises in the UK, which often struggle with low margins and tight working capital, A C Wilson Limited’s ability to move from a negative net asset position to positive within two years is a strong performance indicator. However, the company still exhibits a significant level of short-term liabilities exceeding its current assets, suggesting working capital constraints common in farming businesses reliant on crop cycles and seasonal sales.

3. Sector Trends Impact
   The UK agricultural sector faces several headwinds and opportunities that directly impact companies like A C Wilson Limited. Key trends include:

• Increasing input costs (fertilizers, fuel, machinery maintenance) squeezing profit margins.
• Growing demand for locally sourced, sustainable produce driving opportunities for niche crop growers.
• Brexit-related regulatory changes affecting labour availability and trade dynamics.
• Technological adoption in precision farming and mechanisation offering productivity gains but requiring capital investment.
• Climate change and extreme weather events introducing operational risks and crop yield variability.

Given the company’s focus on vegetable and cereal crops, it is exposed to these dynamics. The investment in tangible assets (notably plant and machinery) signals readiness to improve operational efficiency, aligning with sector trends favouring mechanisation. Profitability improvement in 2024 may suggest effective adaptation to input cost pressures and market demand shifts.

4. Competitive Positioning
   A C Wilson Limited appears to be a niche player within the broader UK agricultural sector, focusing on specific crop types rather than large-scale diversified farming. Its relatively small scale and recent establishment position it as a follower or emerging competitor rather than a sector leader, which is typically dominated by larger agribusinesses and cooperatives with extensive landholdings and distribution networks.

Strengths:

• Rapid turnaround from net liabilities to net assets indicates effective management of operational challenges.
• Investment in machinery and intangible assets demonstrates commitment to growth and efficiency.
• Directors’ dual roles and significant shareholding suggest focused leadership and control.

Weaknesses:

• Negative net current assets highlight liquidity risk, which could constrain operational flexibility.
• Low cash reserves relative to current liabilities may affect ability to respond to unexpected expenses or invest in growth.
• Limited employee base may restrict capacity for scaling operations or diversification.

In comparison to typical agricultural SMEs, A C Wilson Limited’s financial trajectory is positive but still requires careful cash flow management to sustain growth and competitiveness.