GWM FARMS (BRAYBROOKE) LIMITED

Executive Summary

GWM Farms (Braybrooke) Limited is currently facing high solvency and liquidity risks, evidenced by significant net liabilities and large short-term creditor balances. Despite compliance with filing obligations and investment in fixed assets, the company relies heavily on director financial support to sustain operations. Detailed due diligence on cash flow, profitability, and creditor terms is recommended to better understand the company's financial stability and ongoing viability.

GWM FARMS (BRAYBROOKE) LIMITED - Analysis Report

Company Number: 13482503

Analysis Date: 2025-07-20 14:28 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns due to substantial net current liabilities and negative net assets, indicating financial distress and a high risk of being unable to meet short-term obligations without external support.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company reported net liabilities of approximately £509,726 at the 2024 year-end, worsening from previous years, signaling ongoing losses or asset impairments.
• Severe Net Current Liability Position: Current liabilities exceed current assets by about £1.38 million, with relatively low cash reserves (£37,644), which raises liquidity risk and questions about the company’s ability to cover immediate debts.
• Dependence on Director Support: The financial statements note a "non-binding intention" from directors to continue financial support, implying reliance on shareholder/director funding to maintain operations, which may not be sustainable or guaranteed.

3. Positive Indicators:

• Growth in Fixed Assets: Tangible fixed assets increased to nearly £890k, suggesting ongoing investment in farming machinery and equipment, potentially supporting operational capacity.
• No Overdue Filings: The company is current on its statutory accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• Stable Ownership and Management: Control is concentrated in a single individual (Mr Edward Charles Mills), who is also a director actively involved in the business, possibly ensuring aligned interests and decision-making.

4. Due Diligence Notes:

• Examine Cash Flow Details and Funding Arrangements: Assess the company’s cash flow forecasts and any formal or informal director/shareholder loans or guarantees supporting liquidity.
• Review Profit & Loss Position and Revenue Trends: Since the income statement was not filed (exemptions apply), obtain management accounts or further financial data to understand operational profitability or losses driving the negative equity.
• Investigate Composition and Terms of Current Liabilities: Scrutinize the large creditor balances, especially “other creditors” (£1.735 million), to identify whether these include related party loans, trade payables, or other financial obligations and their repayment terms.
• Assess Impact of Hire Purchase Agreements: Confirm ongoing commitments related to fixed assets under hire purchase contracts and the associated financial burden.

Executive Summary:
GWM Farms (Braybrooke) Limited demonstrates a high risk profile, primarily due to significant negative net assets and substantial net current liabilities, which raise serious solvency and liquidity concerns. While the company maintains regulatory compliance and has invested in fixed assets, its financial sustainability appears heavily dependent on continued director support and improved operational cash flow. Further investigation into the company’s earnings, funding arrangements, and creditor composition is essential to assess its viability.