Company Number: 13118668

Analysis Date: 2025-07-29 20:10 UTC

1. Risk Rating: LOW to MEDIUM
   The company shows positive net current assets and positive net assets, indicating it can meet short-term obligations. However, the presence of significant long-term creditors (£250,000) relative to modest net assets (£27,173) introduces a moderate solvency consideration. The company appears operationally stable but with limited equity cushion.

2. Key Concerns:

• Long-Term Debt Level: £250,000 of creditors due after more than one year is substantial relative to net assets, potentially indicating leverage risk.
• Limited Equity Base: Share capital is minimal (£250), and shareholders' funds are low, which could constrain financial flexibility.
• Concentration of Control: One individual holds 75-100% of shares, potentially creating governance risk if diverse oversight is limited.

3. Positive Indicators:

• Healthy Working Capital: Net current assets are positive (£223,608), suggesting good short-term liquidity and ability to cover immediate liabilities.
• Recent Asset Investment: Tangible fixed assets increase to £53,565, reflecting investment in operational capacity.
• Filing Compliance: All statutory accounts and confirmation statements are filed on time with no overdue returns, indicating good regulatory compliance.
• Profit & Loss Reserve: The company has accumulated reserves (£27,163), showing some retained earnings development since inception.

4. Due Diligence Notes:

• Review terms and conditions of the £250,000 long-term creditors to understand repayment schedules and covenants.
• Assess cash flow statements (not provided) to confirm operational cash generation and debt servicing capability.
• Investigate the company's business model and revenue streams in raising cattle and buffaloes for sustainability and market risk.
• Confirm that the directors' related party transactions, if any, are at arm's length given the familial nature of control.
• Verify the adequacy of insurance and risk management given the agricultural sector's exposure to commodity and weather risks.
• Examine any contingent liabilities or off-balance sheet obligations not disclosed in the accounts.