EDGEFOOT FARM LTD

Executive Summary

Edgefoot Farm Ltd is a very small, micro-entity with limited financial resources but currently demonstrates a positive net asset position and working capital. The company appears stable with timely filings and no signs of distress; however, its limited equity and cash position constrain credit capacity. Approval of modest credit facilities is reasonable with close ongoing liquidity and performance monitoring.

EDGEFOOT FARM LTD - Analysis Report

Company Number: 13132455

Analysis Date: 2025-07-20 13:31 UTC

1. Credit Opinion: APPROVE with caution. Edgefoot Farm Ltd is a micro-entity with a very limited financial footprint but shows a small positive net asset position and working capital surplus. The company is active, has filed accounts on time, and has no indications of distress or overdue filings. However, given its size, limited equity base (£2,587 net assets), and very modest fixed and current assets, its ability to service substantial debt is constrained. Credit facilities should be modest and closely monitored, appropriate to its micro-enterprise scale.

2. Financial Strength: The balance sheet shows total net assets of £2,587 as of 31 January 2024, up from £2 in previous years, indicating a small but positive retained equity increase. Fixed assets are minimal (£1,142), and current assets stand at £3,258 against current liabilities of £1,813, yielding net current assets (working capital) of £1,445. The company is solvent with positive shareholders' funds but operates at a very small scale with limited capital resources. The micro-entity status and minimal share capital (£2) highlight restricted financial flexibility.

3. Cash Flow Assessment: Current assets include £3,258, but cash specifically was not separately disclosed for 2024; prior years showed nominal cash of £1. Current liabilities are £1,813, so the company maintains a positive net working capital buffer (£1,445), which suggests reasonable short-term liquidity. However, the very low cash balances in prior years imply potential cash flow tightness. The business likely depends on timely receivables and minimal payables to stay liquid. Cash flow should be monitored carefully.

4. Monitoring Points:

• Liquidity: Track cash balances and receivables closely to ensure the company can meet short-term obligations.
• Profitability and Equity Growth: Monitor if net assets continue to grow beyond the current marginal level, indicating improving business performance.
• Director and Shareholder Stability: The two PSCs have significant control—any changes here should be noted.
• Filing Compliance: Continue to ensure timely filing of accounts and confirmation statements.
• Business Scale: Given the micro category and single employee, any significant operational expansion should be reviewed for credit impact.