Company Number: 13263859

Analysis Date: 2025-07-20 18:17 UTC

1. Risk Rating: LOW to MEDIUM
   Upper Brandon Farm Limited presents a generally stable financial position with improving net assets and positive working capital. However, the presence of longer-term liabilities and relatively small fixed asset base introduces some caution on solvency and liquidity, warranting a low to medium risk rating.

2. Key Concerns:

• Long-term liabilities: The company has £5,000 in loans due after more than one year as of the latest accounts, which requires monitoring against cash flow and profitability to ensure sustainability.
• Modest fixed assets: Tangible assets are minimal (£498 in 2024), suggesting limited collateral and potentially low operational capital intensity.
• Director turnover: Two of three directors resigned recently, leaving a single director in place. This could pose governance and operational continuity risks if not addressed.

3. Positive Indicators:

• Increasing net assets: Shareholders’ funds increased from £1,390 in 2023 to £4,805 in 2024, reflecting retained earnings growth and strengthening equity.
• Strong liquidity position: Net current assets improved significantly to £9,307 in 2024 from £642 in 2023, supported by increased cash balances (£9,172).
• Timely filings and compliance: Accounts and confirmation statement are up to date with no overdue filings, indicating good regulatory compliance.

4. Due Diligence Notes:

• Review the terms and covenants of the £5,000 long-term loan to assess repayment obligations and refinancing risk.
• Verify the operational impact and reasons for director resignations, and assess whether adequate management structures are in place.
• Investigate the source of the significant increase in cash and net current assets to confirm sustainability and quality of earnings.
• Clarify the nature of debtors classified as "amounts owed by participating interests" (£1,739), to assess related party risk and collectability.
• Examine turnover and profitability trends (not disclosed here) to better understand business sustainability beyond balance sheet data.