Company Number: 12467448

Analysis Date: 2025-07-20 16:58 UTC

1. Credit Opinion: DECLINE

Nutricor Agronomics Limited demonstrates significant financial distress evidenced by persistent and increasing net liabilities (from -£75k in 2023 to -£107k in 2024) and negative working capital. The company's current liabilities (£223k) substantially exceed its current assets (£106k), leading to a net current liability position of -£117k, which raises serious concerns about its ability to meet short-term obligations. The absence of external audit and reliance on director support for going concern further weakens credit reliability. Given these factors, granting credit would be high risk without substantial guarantees or restructuring.

2. Financial Strength:

The balance sheet shows a weak financial position with net liabilities growing year on year. Fixed assets have decreased slightly, and current assets remain static with a significant portion tied up in stock (£68k). Trade debtors have declined, and cash balances, although improved from £2.9k to £9.5k, remain low relative to current liabilities. The company’s equity is negative (-£107k), indicating accumulated losses that exceed capital invested. Such a position indicates limited buffer to absorb financial shocks and potential difficulty securing external funding.

3. Cash Flow Assessment:

Liquidity is constrained with negative net current assets of -£117k. Current liabilities have increased by approximately £29k, driven mainly by a rise in trade creditors from £2 to £33k and stable other creditors (~£187k). The modest cash balance (£9.5k) is insufficient to cover immediate liabilities, and the company depends on director support, as noted in the accounts. The working capital deficit suggests ongoing cash flow challenges, risking delayed payments to suppliers and creditors.

4. Monitoring Points:

• Working capital trends: Watch for improvements or deterioration in net current assets.
• Cash flow generation: Monitor operating cash inflows and outflows closely.
• Trade creditor balances: Significant increases may indicate payment stress.
• Debt restructuring or injection of equity: Any capital support will impact creditworthiness.
• Director involvement: Changes in director support or control could influence going concern status.
• Filing compliance: Despite current filings being up to date, ongoing compliance is critical given financial weakness.