AGRI-HR LTD
Company number 11600044 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Risk Analysis: AGRI-HR LTD
1. Risk Rating: MEDIUM
The company demonstrates strong financial growth and a healthy cash position; however, significant governance concerns exist around the director's loan account, which has nearly doubled year-on-year to £239,325, representing approximately 38% of net assets. An inconsistency in the going concern note and exposure to high-risk international jurisdictions further elevate the risk profile beyond what the headline financials might suggest.
2. Key Concerns
Director's Loan Account – £239,325 outstanding The sole director (and >75% PSC) owed the company £116,922 at the start of 2025, advanced a further £310,011, repaid £187,608, and closed the year with an outstanding balance of £239,325. This represents a 104% increase in the outstanding balance year-on-year. The scale and trajectory of these advances—particularly relative to the company's share capital of just £100—raises questions about whether the company is being used as a personal banking facility. The director's >75% control over all governance matters means there are no independent checks on these transactions.
Going Concern Note Inconsistency The accounts state they are prepared on a going concern basis "notwithstanding the company's net current liabilities position at the balance sheet date." However, the balance sheet reports net current assets of £562,931—a strongly positive position. This inconsistency suggests either the note was not updated from a prior period template (raising concerns about accounts preparation quality) or there is an undisclosed matter not reflected in the abridged statements. Either interpretation is problematic.
International Investments in High-Risk Jurisdictions Note 5 discloses investments comprising a 50% share in Agri-HR Russia Ltd and a 15% share in Agri-HR Kyrgyzstan Ltd, valued at £130. Given the ongoing sanctions regime relating to Russia and the operational complexities of Central Asian jurisdictions, these investments carry regulatory, reputational, and potential asset-freezing risks. The nominal valuation may also underrepresent the actual exposure if these entities have trading relationships with the UK parent.
3. Positive Indicators
Strong Financial Trajectory Net assets have grown from £-59,910 (2019) to £630,143 (2025), demonstrating a sustained turnaround and profitable trading. The year-on-year increase from £288,317 to £630,143 represents approximately 119% growth.
Improving Liquidity Cash at bank has increased from £129,997 to £348,253, and current liabilities have decreased from £367,859 to £289,656. The current ratio (excluding the director's loan from debtors) appears healthy.
Regulatory Compliance Accounts and confirmation statements are filed and up to date with no overdue items. The company has maintained active status since incorporation in 2018.
Operational Scaling Employee numbers have grown from 6 to 7, and tangible fixed assets increased from £16,715 to £89,442 following £105,534 in capital additions, suggesting investment in the business's operational capacity.
4. Due Diligence Notes
| Item | Detail |
|---|---|
| Director's Loan Terms | Obtain details of any written agreement governing the director's loan—interest rate (if any), repayment schedule, and security. Under Corporation Tax rules, loans to participators can trigger S455 tax charges at 33.75% if not repaid within 9 months of year-end. |
| Debtors Composition | Debtors stand at £504,334. After removing the director's loan (£239,325), approximately £265,009 remains. Determine the age profile and recoverability of these balances, particularly given the seasonal nature of agricultural recruitment. |
| Provisions Increase | Provisions rose from £4,179 to £22,360—a 435% increase. The abridged accounts do not disclose the nature of these provisions. Clarification is needed on whether these relate to warranties, litigation, or other contingent liabilities. |
| Russian/Kyrgyzstan Exposure | Assess the nature of trading relationships with these overseas entities, sanctions compliance status, and whether any assets or guarantees have been provided. Determine if the £130 valuation reflects fair value or if impairment should be recognised. |
| Going Concern Note | Directly query the preparers (Thorne Widgery Accountancy Ltd) on the inconsistency between the stated net current liabilities and the reported net current assets. Request confirmation that the accounts were properly reviewed before approval on 20 July 2026. |
| Related Party Transactions | Beyond the director's loan, investigate whether any other related party transactions exist, particularly with the Russian and Kyrgyzstan entities, and whether transfer pricing considerations apply. |
| Capital Additions | The £105,534 in tangible asset additions is significant relative to the company's size. Confirm the nature of these assets (plant/machinery, motor vehicles, etc.) and whether any are leased or subject to finance arrangements not visible in the abridged balance sheet. |