Company Number: 13952014

Analysis Date: 2025-07-20 15:11 UTC

1. Risk Rating: HIGH
   The company shows a significant negative equity position, with shareholders' funds deteriorating from -£169,896 in 2023 to -£262,801 in 2024. Moreover, liabilities due after one year have increased substantially to over £1.3 million, exceeding total assets, indicating solvency concerns. The company’s operations rely heavily on lender support, which introduces material going concern risk.

2. Key Concerns:

• Negative Equity and Solvency: The company’s net assets are deeply negative, signaling that liabilities substantially exceed assets and shareholders’ funds, posing a risk to creditor and investor capital.
• High Long-Term Debt: Creditors due after more than one year have nearly doubled in the latest period to £1.3 million, significantly outweighing total assets (£1,057,769), indicating potential difficulty meeting long-term obligations without refinancing or capital injection.
• Reliance on Lender Support for Going Concern: Directors explicitly state the company’s survival depends on continued lender support, which may not be sustainable if financial performance or market conditions deteriorate.

3. Positive Indicators:

• Filing Compliance: The company is current on its accounts and confirmation statement filings, indicating good regulatory compliance and governance in this respect.
• Tangible Asset Base: The company holds significant tangible fixed assets (£424,584), including leasehold land and buildings and motor vehicles, which provide some collateral backing.
• Stable Management: Directors and persons with significant control appear consistent and based locally, potentially facilitating operational oversight and strategic continuity.

4. Due Diligence Notes:

• Investigate the nature and terms of the £1.3 million long-term creditors to understand repayment schedules, interest costs, and covenants.
• Review cash flow forecasts and lender agreements to assess the sustainability of ongoing lender support and liquidity position.
• Obtain management accounts and profit and loss details (not included in the filing) to evaluate operational performance and recent trading results.
• Assess whether any impairment risks exist related to tangible fixed assets or stock (livestock) given the industry and asset valuations.
• Confirm whether any director conduct or related party transactions may impact governance or financial stability.