NORRIS BROTHERS FARMS LIMITED

Executive Summary

Norris Brothers Farms Limited presents a moderate risk profile typical of a recently incorporated farming enterprise with significant asset investment and positive equity growth. While regulatory compliance is current and fixed asset expansion is promising, liquidity pressures and limited operational history warrant further investigation. Prospective investors should seek detailed cash flow and operational data to confirm business sustainability and governance robustness.

NORRIS BROTHERS FARMS LIMITED - Analysis Report

Company Number: NI684716

Analysis Date: 2025-07-20 12:41 UTC

1. Risk Rating: MEDIUM
   The company shows growth in net assets and fixed assets, indicating investment and expansion. However, current liabilities remain significant, and the company is relatively new without an established earnings track record, which poses moderate solvency and liquidity risks.

2. Key Concerns:

• Liquidity Position: Although net current assets are positive (£133,595), current liabilities are substantial (£221,909), and current assets have declined from the prior year, suggesting a potential tightening of short-term liquidity.
• Relatively Recent Incorporation: Incorporated in 2022, the company has limited financial history and no reported employees, making operational stability and cash flow reliability difficult to assess.
• Concentration of Control: One individual (Luke Norris) holds 75-100% ownership and also serves as director and secretary, which could raise governance and succession concerns.

3. Positive Indicators:

• Significant Growth in Fixed Assets: Fixed assets increased markedly from £70,165 to £377,481 in the latest year, indicating capital investment that may support future revenue generation.
• Positive Net Assets and Shareholders’ Funds: Net assets more than quintupled to £289,167, reflecting strengthened equity and capital base.
• Up-to-date Compliance: No overdue filings for accounts or confirmation statement, demonstrating regulatory compliance and governance diligence.

4. Due Diligence Notes:

• Investigate the nature and financing of the increased fixed assets to understand capital expenditure sources and impact on cash flow.
• Review cash flow statements and profit & loss data (if available) to assess operational cash generation and sustainability.
• Confirm absence of related party transactions or guarantees given the family control structure.
• Clarify business plan and revenue model, considering no employees are currently reported.
• Assess director background and experience for operational capability and governance standards.