Company Number: SC689343

Analysis Date: 2025-07-29 21:14 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Agriwheel Limited demonstrates a modest but improving financial position with positive net assets and increasing working capital. The company is active, with no overdue filings and a single director who owns full control. However, the director’s current account balance owed by the company (£67,646) is sizeable relative to net assets and should be monitored as it represents a related party loan that is repayable on demand but interest-free, posing a potential liquidity risk. The company’s short trading history and relatively small scale require cautious credit extension, with conditions to review periodic cash flow statements and director loan account movements.

2. Financial Strength:
   The balance sheet is stable, showing net assets increasing from £820 in 2021 to £24,521 in 2024, indicating growth in retained earnings and equity injection through operations. Current assets (£101,872) exceed current liabilities (£77,391), yielding positive net current assets (£24,481), which supports short-term financial obligations. Fixed assets are minimal (£50), reflecting low capital investment, typical for a consultancy. The large increase in other creditors (from £29,200 to £61,057) warrants inquiry to understand the nature of these liabilities.

3. Cash Flow Assessment:
   Cash balances increased considerably to £98,102, supporting liquidity. The current liabilities are manageable relative to current assets, with a current ratio above 1.3. However, the director’s loan account has increased substantially to £67,646, indicating reliance on director funding rather than external borrowing; although repayable on demand, this could impact liquidity if called. Debtors have decreased, which may reflect improved collections or lower sales; ongoing monitoring of debtor days is advisable.

4. Monitoring Points:

• Movements and repayment plans regarding the director’s loan account.
• Trends in trade creditors and other creditors to assess payment practices and supplier relationships.
• Cash flow forecasts and actual cash conversion cycle, particularly debtor collections and creditor payments.
• Filing of annual accounts and confirmation statements to ensure compliance.
• Any significant changes in ownership or director conduct.