Company Number: 14395294

Analysis Date: 2025-07-19 12:24 UTC

1. Risk Rating: LOW
   Farrow Estate Agents Ltd demonstrates a sound financial position with positive net assets, increasing cash reserves, and no overdue filings, indicating low immediate financial or compliance risk.

2. Key Concerns:

• Director Loans and Creditor Balances: The accounts show a significant loans from directors offsetting other creditors (£81,377), which warrants review to confirm repayment terms and potential liquidity impact.
• Limited Operational History: Incorporated in late 2022, the company has a short trading history with only one employee, which limits the ability to assess long-term operational stability.
• Concentration of Control: One individual (Director Leslie Fifi Quist) holds 75-100% ownership and voting rights, which may pose governance risks if not balanced by robust internal controls.

3. Positive Indicators:

• Improved Liquidity and Net Assets: Cash increased from £15,096 to £50,407 year-on-year, with net assets growing from £6,126 to £33,890, indicating strengthening financial health.
• Compliance with Filing Requirements: Both accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance.
• Profit Retention: The profit and loss reserve increased substantially, demonstrating operational profitability or capital injection supporting equity growth.

4. Due Diligence Notes:

• Clarify the nature and terms of director loans and other creditors, especially the large offsetting amounts, to understand any contingent liabilities or repayment schedules.
• Review cash flow statements (if available) to assess operational cash generation versus financing activities.
• Investigate client base, revenue streams, and business model sustainability given the company’s very recent establishment and limited employee count.
• Confirm any related party transactions and their impact on financial position.
• Assess governance practices given the single director’s control and absence of other directors or officers.