HOME FARM BARN LIMITED

Executive Summary

HOME FARM BARN LIMITED, a recently incorporated micro-entity engaged in real estate trading, currently exhibits a fragile financial position characterized by negligible net assets and slightly negative working capital. While the company maintains compliance with filing requirements and shows clear ownership, its minimal operational scale and liquidity constraints represent significant risks. Further investigation into the company’s cash flow management, business model, and funding arrangements is essential to assess its viability and risk profile accurately.

HOME FARM BARN LIMITED - Analysis Report

Company Number: 15025005

Analysis Date: 2025-07-29 12:59 UTC

1. Risk Rating: HIGH
   The company’s financial data reveals a marginal net asset position (£100) with net current liabilities of £370, indicating a very thin equity buffer and potential liquidity stress. The current liabilities exceed current assets slightly, which may impair the company’s ability to meet short-term obligations without additional funding.

2. Key Concerns:

• Liquidity Position: Current liabilities (£1,290,910) slightly exceed current assets (£1,290,540), resulting in a negative net current asset position (-£370). This suggests potential cash flow constraints in the short term.
• Minimal Equity Base: Shareholders’ funds and net assets stand at only £100, providing negligible financial resilience against operational risks or unexpected liabilities.
• Operational Scale: The company is newly incorporated (July 2023) and reports zero employees on average, indicating a lack of operational activity or scale at this stage. This raises questions about business sustainability and revenue generation capacity.

3. Positive Indicators:

• No Overdue Filings: Both the latest accounts and confirmation statement are filed on time, suggesting compliance with statutory reporting requirements.
• Active Status: The company is active and not under liquidation or administration.
• Clear Ownership Structure: PSC information shows transparent control with a majority shareholder holding 50-75% and an identifiable corporate shareholder, indicating defined governance lines.

4. Due Diligence Notes:

• Cash Flow and Funding Sources: Investigate the nature and timing of current liabilities to understand liquidity management and confirm availability of cash or credit lines.
• Business Model and Revenue Generation: Clarify the operational plans and revenue streams given no employees and minimal fixed assets reported.
• Director Changes and Governance: Note recent director changes (resignation and appointment in December 2024) and assess any impact on management continuity or strategic direction.
• Related Party Transactions and Capital Contributions: Examine whether current liabilities include loans or payables from related parties or shareholders, which may affect solvency risk assessment.
• Future Financial Projections and Capital Plans: Request forecasts and capital injection plans to support business growth and financial stability.