Company Number: 14062362

Analysis Date: 2025-07-19 11:53 UTC

1. Risk Rating: MEDIUM
   Beal's Farm Limited is an active private limited company incorporated in 2022, operating in the wholesale and processing of meat products. The financials show a consistent negative net current asset position over the past two years, indicating short-term liquidity concerns. However, the company maintains positive shareholders' funds and has no overdue filings, which mitigates immediate solvency risk.

2. Key Concerns:

• Negative Working Capital: The company reported net current liabilities of £33,181 as of August 2024 (slight improvement from £40,011 in 2023), indicating potential challenges in meeting short-term obligations from current assets.
• Low Cash Reserves: Cash at bank remains low (£3,298 in 2024), which may limit the company’s ability to cover immediate expenses or unexpected costs.
• Intangible Assets (Goodwill) Valuation: Intangible assets of £130,162 represent a significant portion of fixed assets with no amortisation noted, raising questions about impairment risk and the recoverability of this asset.

3. Positive Indicators:

• Stable Shareholders’ Funds: Shareholders’ funds remain positive and stable (~£217,800), suggesting the company’s net asset position remains sound despite current liabilities.
• No Overdue Filings: Both accounts and confirmation statements are filed on time, demonstrating compliance with regulatory requirements and good governance practices.
• Experienced Directors: The board includes directors with farming and financial advisory backgrounds, potentially providing operational and financial expertise.

4. Due Diligence Notes:

• Investigate the nature and origin of the intangible fixed assets (goodwill), including the basis for valuation and any impairment reviews conducted.
• Assess the company’s cash flow forecasts and working capital management strategies to confirm ability to meet short-term liabilities.
• Review trade creditor and other creditor terms and aging to understand payment cycles and potential liquidity pressures.
• Verify if there are any off-balance sheet liabilities or contingent risks not reflected in current financial statements.
• Confirm the company's revenue trends and profitability as income statement data was not filed, limiting assessment of operational stability.