AGROPHARMA FOR FARMING SOLUTIONS LIMITED

Executive Summary

Agropharma For Farming Solutions Limited is a newly formed micro-entity with a weak financial position characterized by negative net current assets and shareholders’ funds. The company currently lacks the liquidity and equity base to service debt or extended credit, resulting in a declined credit opinion. Close monitoring of cash flow, capital injections, and financial improvements is essential before reconsidering credit facilities.

AGROPHARMA FOR FARMING SOLUTIONS LIMITED - Analysis Report

Company Number: 14721486

Analysis Date: 2025-07-20 16:36 UTC

1. Credit Opinion: DECLINE
   Agropharma For Farming Solutions Limited is a newly incorporated micro-entity (less than 1.5 years old) with a very weak financial position. The latest accounts show significant net current liabilities (£33,200) and negative shareholders’ funds at £16,300. This indicates the company is currently insolvent on a balance sheet basis and unable to meet short-term obligations from existing assets. There is no trading history or evidence of positive cash flow generation yet. Given the startup status, negative equity, and lack of liquidity, the company is not currently creditworthy for lending or extended trade credit without substantial guarantees or capital injection.

2. Financial Strength:
   The balance sheet reveals minimal fixed assets (£16,900) and very low current assets (£6,800) against high current liabilities (£40,000). The negative net current assets position indicates working capital deficiency, meaning the company’s short-term liabilities exceed its liquid assets by a wide margin. Shareholders’ funds are negative at £16,300, reflecting accumulated losses or initial funding shortfalls. This weak financial foundation poses a high risk of default without immediate improvement or external support.

3. Cash Flow Assessment:
   With only one employee and no audit requirement, the company is in an early growth phase but currently lacks sufficient cash or liquid assets to cover debts due within the next year. The negative working capital suggests cash flow is constrained, likely requiring additional capital from the sole shareholder or external sources. There is no indication of operational cash generation yet, so liquidity risk is high. Monitoring cash burn rate and capital injections is critical.

4. Monitoring Points:

• Regular updates on cash flow and working capital improvements.
• Evidence of new capital injections or shareholder funding to cover liabilities.
• Progress on increasing current assets through sales or receivables.
• Any changes in creditor terms or additional borrowing facilities.
• Early signs of profitability or improved cash conversion cycles.
• Continued compliance with filing deadlines and regulatory requirements.
• Management’s strategy to reduce liabilities and strengthen the balance sheet.