ILMINGTON FARM LIMITED

Executive Summary

Ilmington Farm Limited is an early-stage small mixed farming enterprise with limited operational assets but a stable initial financial foundation. Compared to established sector players, it currently operates at a smaller scale with potential liquidity constraints. Its competitive positioning will hinge on capitalizing on sector trends and scaling operational capabilities in a highly competitive and regulated agricultural environment.

ILMINGTON FARM LIMITED - Analysis Report

Company Number: 14719718

Analysis Date: 2025-07-29 20:31 UTC

1. Industry Classification
   Ilmington Farm Limited operates within SIC code 1500, which corresponds to the "Mixed farming" sector. This sector is characterized by agricultural enterprises engaged in a combination of crop cultivation and livestock farming. Mixed farming businesses typically manage land assets, agricultural machinery, and biological assets, and their revenue streams depend on commodity prices, weather conditions, and agricultural policy environments. The sector is capital intensive, often with large fixed assets such as land and buildings, and faces cyclical demand influenced by global food markets and domestic agricultural subsidies or regulations.

2. Relative Performance
   As a newly incorporated private limited company (March 2023), Ilmington Farm Limited is currently classified as a small company with only 2 employees and relatively modest financial figures for its first accounting period ending March 2024. The balance sheet shows current assets of £202,404, dominated by a £200,000 investment asset, with net current assets of £64,140 and shareholders’ funds of £64,140. The company has minimal cash (£2,403) and nominal debtors (£1), but significant current liabilities of £138,264. Unlike typical established mixed farming operations that often carry substantial fixed assets (land, buildings, livestock), this company shows no tangible fixed assets at the period end, indicating it may have disposed of such assets or not yet acquired them. Profit and loss reserves are positive, but detailed profitability data is not disclosed. Compared to sector norms, which usually involve significant asset bases and operating revenues, Ilmington Farm Limited’s financial profile suggests an early stage or transitional business with limited operational scale.

3. Sector Trends Impact
   The mixed farming sector in the UK is currently influenced by several market dynamics:

• Agricultural commodity prices remain volatile due to global supply chain disruptions and geopolitical factors.
• Increasing emphasis on sustainable and regenerative farming practices affects input costs and capital investments.
• Brexit-related regulatory changes impact subsidy regimes and export opportunities.
• Rising costs of energy and labour create pressure on operating margins.
• There is growing consumer demand for traceability and organic production methods, which can create niche markets but require investment.
  Ilmington Farm Limited’s financials do not yet reveal engagement with these trends directly, but given its small scale and lack of fixed assets, the company may be in an early development phase or focusing on investment before operational expansion to capitalize on these sector trends.

4. Competitive Positioning
   Strengths:

• The company benefits from private ownership by directors who hold significant control, potentially allowing agile decision-making.
• Positive net current assets and shareholders’ funds provide a stable financial base for growth.
• As a small private company, it has limited regulatory and reporting burdens, allowing focus on business development.

Weaknesses:

• Absence of tangible fixed assets and low cash reserves suggest limited operational capacity at present compared to typical farms that rely on land and equipment.
• High current liabilities relative to cash may indicate short-term liquidity risks if not managed carefully.
• Lack of audited financials and detailed profit/loss disclosures reduces transparency for potential investors or lenders.
• The company is a newcomer in a competitive sector dominated by larger, more established farms benefiting from economies of scale and established supply chains.

In summary, Ilmington Farm Limited is a nascent small farming enterprise within the mixed farming sector, currently exhibiting a financial profile typical of new entrants or transitional businesses rather than established agricultural operators. The company’s future performance will depend on its ability to acquire or develop operational assets and effectively navigate sector-specific challenges such as commodity price volatility, regulatory changes, and evolving consumer preferences.