K J & C S WILSON LIMITED

Executive Summary

K J & C S Wilson Limited displays a solid net asset position anchored by significant tangible assets but faces recurring liquidity challenges evidenced by persistent net current liabilities and dependence on overdraft facilities and director loans. The company remains compliant with filing requirements and benefits from stable management, yet investors should carefully review cash flow sustainability and related-party creditor exposures before proceeding.

K J & C S WILSON LIMITED - Analysis Report

Company Number: 13498827

Analysis Date: 2025-07-20 14:02 UTC

1. Risk Rating: MEDIUM

The company exhibits a moderate level of risk primarily due to recurring net current liabilities and reliance on external financial support, though it maintains positive net assets and has no overdue filings.

2. Key Concerns:

• Negative Net Current Assets: The company has consistently reported substantial net current liabilities (approximately £885k in 2024), indicating potential liquidity pressures to meet short-term obligations.
• Reliance on Bank Overdraft and Director Support: The accounts note reliance on an overdraft facility repayable on demand and director short-term loans to support operations, which may be a liquidity constraint if support is withdrawn.
• Significant Creditors Within One Year: Current liabilities are high relative to current assets, with sizeable amounts owed to group undertakings (£1.05M) and banks, which could affect operational flexibility if not managed carefully.

3. Positive Indicators:

• Strong Net Asset Position: Despite liquidity challenges, the company has a healthy net asset base (£1.47M), supported by tangible fixed assets valued at approximately £2.82M.
• No Overdue Filings or Compliance Issues: The company is active, with all accounts and confirmation statements filed on time, indicating good regulatory compliance.
• Stable Management Team: Directors and secretary are consistent and appear closely involved in the farming operation, suggesting operational continuity and aligned governance.

4. Due Diligence Notes:

• Examine Cash Flow Forecasts: Review detailed cash flow projections and banking arrangements to assess the sustainability of overdraft reliance and director loans.
• Assess Creditors and Group Transactions: Investigate the nature and terms of amounts owed to group undertakings to understand related-party risk and repayment expectations.
• Evaluate Asset Valuation and Realizability: Confirm the valuation approach for herd stock and tangible assets, and the potential impact of a downturn on recoverable amounts, especially given the going concern note.
• Review Directors’ Support Commitments: Clarify the extent and terms of financial support provided by directors to confirm ongoing viability.