AGRICALD LIMITED

Executive Summary

Agricald Limited is currently experiencing significant financial distress characterized by growing negative net assets and liquidity shortfalls. While the company remains compliant with statutory filings and shows some fixed asset growth, its deteriorating solvency position poses substantial risk to creditors and investors. Further financial and operational due diligence is essential to evaluate the company's turnaround prospects and sustainability.

AGRICALD LIMITED - Analysis Report

Company Number: SC676347

Analysis Date: 2025-07-20 19:07 UTC

1. Risk Rating: HIGH

The company shows significant financial distress with net liabilities increasing markedly from £20,139 (2023) to £336,402 (2024) and worsening negative net current assets (£1.53m). This indicates solvency risks and inability to meet short-term obligations. The micro-entity status limits available financial disclosures, but the trend points to financial instability.

2. Key Concerns:

• Negative net assets and sharply increasing current liabilities relative to current assets indicate poor liquidity and solvency issues.
• Rapid growth in current liabilities (from £1.12m to £1.85m) without a proportional increase in current assets or equity raises concern about cash flow management.
• The company employs 7 people but has no detailed information on revenue or profit, limiting insight into operational viability.

3. Positive Indicators:

• The company is current on filing all statutory accounts and confirmation statements, which implies regulatory compliance and transparency.
• Fixed assets have increased from £946k to £1.19m, suggesting some investment or asset base growth.
• The board consists of multiple directors with significant control, which may indicate active governance.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities to understand if they are short-term debts, trade payables, or other obligations.
• Review cash flow statements, income statements, and any management accounts to assess operational performance and revenue streams.
• Clarify the reasons behind the increase in liabilities and negative equity, including whether the company is dependent on director loans or external financing.
• Assess any contingent liabilities or off-balance-sheet exposures.
• Confirm whether the company’s business plan addresses the negative equity position and how it intends to restore financial stability.