Company Number: 14250949

Analysis Date: 2025-07-29 13:21 UTC

1. Risk Rating: MEDIUM
   While Farm Veterinary Consultancy Ltd shows positive net current assets and shareholders' funds, the company is very young (incorporated in 2022) and operates at a micro entity scale with minimal fixed assets. The current liabilities are significant relative to current assets, posing some liquidity risk. The absence of employees and limited financial history adds uncertainty to operational stability.

2. Key Concerns:

• Liquidity Pressure: Current liabilities (£51,578) are close to the level of current assets (£62,386), leaving a modest net current asset buffer (£10,808). This narrow margin could tighten under unforeseen expenses or delayed receivables.
• Limited Operational History and Scale: Incorporated in July 2022 with no employees reported and only small asset base, which raises questions about business sustainability and revenue generation capability.
• No Audit and Limited Disclosure: The company is exempt from audit under micro-entity provisions, and financial statements are unaudited, limiting assurance on accuracy and completeness of financial data.

3. Positive Indicators:

• Positive Net Assets: Shareholders' funds increased from £20 in 2023 to £11,211 in 2024, indicating some capital injection or retained earnings.
• Compliance with Filings: Accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance.
• Experienced Director: The sole director is a veterinary surgeon, relevant to the business activity, suggesting domain expertise and potentially aligned operational focus.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess whether these are trade payables, short-term loans, or accruals and their payment terms.
• Review cash flow statements or bank statements (not provided) to confirm liquidity beyond the balance sheet snapshot.
• Understand revenue streams, client base, and contracts in place to evaluate operational sustainability.
• Clarify reason for previous name AGRICULTURAL RENEWABLE ENERGY COMPANY LTD and the business pivot to veterinary consultancy to assess any legacy risks or liabilities.
• Confirm whether any director or related party loans exist that might impact financial stability.