FUTURE GREENS FARMS LTD

Executive Summary

FUTURE GREENS FARMS LTD shows positive net assets and working capital but has experienced a significant drop in financial strength in the latest year, signaling potential liquidity and solvency pressures. The company is currently solvent but exhibits symptoms of financial distress. Immediate focus on cash flow management, cost control, and strategic financial planning is essential to restore and maintain financial health.

FUTURE GREENS FARMS LTD - Analysis Report

Company Number: 14007550

Analysis Date: 2025-07-29 20:41 UTC

Financial Health Assessment: FUTURE GREENS FARMS LTD

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1. Financial Health Score: C

Explanation:
The company shows some positive indicators such as positive net current assets and shareholders’ funds, indicating a basic level of financial stability. However, a significant and concerning drop in total assets and net assets from the prior two years (2023 and 2024) to the latest financial year ending 31 March 2025 signals symptoms of financial distress or restructuring. This volatility lowers the confidence in sustained health, meriting a cautious "C" grade.

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2. Key Vital Signs

Metric	2025 (£)	2024 (£)	Interpretation
Fixed Assets	1,265	2,530	Low asset base, halved from prior year
Current Assets	11,504	82,848	Sharp decline – potentially reduced cash or stock
Current Liabilities	4,194	0	New short-term debts emerged, reducing liquidity
Net Current Assets	7,310	85,594	Positive but significantly reduced working capital
Total Assets Less CL	8,575	88,124	Drastic decrease, indicating asset depletion
Net Assets (Shareholders Funds)	8,575	88,124	Equity sharply diminished, raising solvency concerns
Average Number of Employees	4	-	Small workforce consistent with micro entity
Share Capital	11.96	-	Minimal share capital typical for micro companies

Interpretation of Vital Signs:

• Healthy cash flow would typically be reflected in stable or growing current assets and positive net current assets. Here, the sharp fall in current assets and rise in current liabilities signals potential liquidity strain, a symptom akin to "shortness of breath" in a patient struggling to circulate cash effectively.
• The net assets plunge from £88k to £8.5k suggests asset write-downs, disposals, or losses, analogous to a sudden loss of body mass in a patient, indicating underlying issues such as operational losses or restructuring.
• The presence of new current liabilities in 2025, where none existed before, could indicate increased short-term financial obligations, a "symptom of distress" requiring attention.

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3. Diagnosis

FUTURE GREENS FARMS LTD appears to be a micro-entity in the agriculture and scientific research sector, with a very recent incorporation date (2022). The financial data suggests an initial phase of asset buildup in 2023 and 2024, followed by a sharp contraction in 2025.

• The sudden drop in assets and net worth could be due to asset sales, write-offs, or operational losses.
• The emergence of current liabilities indicates new short-term financing or unpaid obligations, which may pressure liquidity.
• Despite these challenges, the company maintains positive net current assets and equity, indicating it is not yet insolvent but has weakened financial resilience.

Overall, the company exhibits symptoms of financial stress but is still operational and solvent. This condition resembles a patient recovering from illness but still vulnerable and needing careful management.

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4. Recommendations

To improve financial wellness and restore vitality, the company should consider the following actions:

• Cash Flow Management: Improve monitoring and forecasting of cash inflows and outflows to avoid liquidity crunches. Consider negotiating payment terms with creditors to ease short-term obligations.
• Cost Control: Review operational expenses and workforce efficiency, given the small employee base, to optimize overheads and preserve capital.
• Asset Management: Investigate the cause of asset reduction. If assets were sold or impaired, ensure this aligns with a strategic plan rather than emergency measures. Consider reinvesting in productive assets when financially feasible.
• Financial Planning: Develop a robust budgeting process and strategic financial plan to prevent further unexpected declines in net assets.
• Funding Strategy: Evaluate the need for fresh equity or longer-term debt financing to strengthen the balance sheet if current liabilities continue to increase.
• Governance and Reporting: Maintain timely filings and transparent reporting, supporting confidence among stakeholders and avoiding regulatory penalties.

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