Company Number: 14192901

Analysis Date: 2025-07-29 16:03 UTC

1. Credit Opinion: APPROVE with monitoring
   Agri Facilities Limited demonstrates a solid financial position with positive net assets and a strong liquidity base, supported by substantial cash balances relative to current liabilities as of 30 June 2024. The company’s rapid growth in net current assets and shareholders’ funds over the last year shows a positive financial trajectory. The presence of directors with relevant professional experience, including a Chartered Accountant and an Insurance Broker, suggests sound management oversight in financial and operational areas. Given the company's active status, no overdue filings, and absence of any insolvency indicators, the company appears capable of servicing debt obligations. However, as a relatively young company (incorporated 2022) in a competitive insurance brokerage sector, ongoing monitoring is advised to confirm sustained profitability and cash flow generation.

2. Financial Strength
   The balance sheet is healthy with net assets of £521,509 as of June 2024, up from £148,895 in the prior year, indicating strong equity growth. Current assets are £691,780, predominantly cash (£688,755), providing excellent short-term financial flexibility. Current liabilities of £171,421 are modest relative to current assets, yielding net current assets (working capital) of £520,359, a comfortable liquidity cushion. Fixed assets are minimal (£1,533 net) consistent with the company’s service-oriented nature. The capital structure is fully equity financed with no indication of borrowings, reducing financial risk. Overall, the balance sheet shows strong solvency and low leverage.

3. Cash Flow Assessment
   Cash at bank increased significantly from £230,647 in 2023 to £688,755 in 2024, indicating strong cash inflows or capital injections. Debtors are very low (£3,025), minimizing risk of bad debts. Current liabilities have increased but remain well covered by cash, supporting good short-term liquidity and operational working capital. The company’s ability to maintain large cash reserves suggests it can meet short-term obligations and fund operations without liquidity constraints. However, the absence of an income statement limits visibility on operational cash flow from core business activities; hence, cash inflows should be reviewed in future filings to confirm sustainability.

4. Monitoring Points

• Profitability and cash flow generation: Review future income statements and cash flow statements to verify ongoing operational profitability and cash inflows.
• Growth sustainability: Monitor changes in net assets and working capital to ensure continued positive financial trajectory.
• Debtor and creditor management: Ensure receivables remain low and payables are managed within capacity.
• Director and management stability: Observe any changes in management, especially given recent director resignations and appointments.
• Industry risks: Keep watch on sector developments and regulatory changes that might impact the insurance brokerage business.