WATER BAILIFFS FARM (DEVELOPMENT) LIMITED

Executive Summary

WATER BAILIFFS FARM (DEVELOPMENT) LIMITED, a recently formed micro-entity in construction, currently demonstrates negative net assets and working capital deficits with no trading history or cash flow evidence. The company’s financial position and lack of operational data present high credit risk and inability to service debt at this stage. Close monitoring of future financial performance and liquidity metrics is essential before reconsidering credit exposure.

WATER BAILIFFS FARM (DEVELOPMENT) LIMITED - Analysis Report

Company Number: 15220505

Analysis Date: 2025-07-29 13:15 UTC

1. Credit Opinion: DECLINE
   WATER BAILIFFS FARM (DEVELOPMENT) LIMITED is a newly incorporated micro-entity (since October 2023) operating in domestic building construction. Its first financial statements show net liabilities of £1,559 and negative net current assets of £360, indicating the company is currently insolvent on a balance sheet basis. No employees are recorded, and no income statement was provided, limiting insight into operational performance or cash generation. The sole director is a lawyer by profession, not directly experienced in construction or finance, which raises questions about management expertise in this sector. Given the lack of trading history, negative equity, and no liquidity cushion, the company currently lacks the financial strength or evidence of cash flow to service debt or commercial credit.

2. Financial Strength
   The balance sheet shows minimal assets and liabilities consisting primarily of creditors and accruals, with no fixed or current assets reported. Shareholders’ funds are negative, reflecting initial funding shortfalls or start-up costs exceeding capital injection. The absence of any recorded turnover or operational assets means the company has no tangible financial buffer. The controlling shareholder is Water Bailiffs Farm Limited, which may provide some indirect support, but no evidence is presented of financial backing or guarantees.

3. Cash Flow Assessment
   No cash or working capital is reported; net current liabilities are present, indicating a working capital deficit. The company has accrued liabilities of £1,200, suggesting unpaid expenses or deferred income. Without operational cash flow data or income statements, it is not possible to assess the company’s ability to generate cash or meet short-term obligations. The negative working capital position implies immediate liquidity risk.

4. Monitoring Points

• Future filing of audited or unaudited accounts including income statements to assess revenue generation and profitability.
• Changes in net current assets and shareholders’ funds to monitor improvement in financial position.
• Cash balances and trade creditor ageing to evaluate liquidity and payment behavior.
• Director or shareholder capital injections or external financing to support operations.
• Contract wins or order book development as indicators of business viability and revenue pipeline.
• Management changes or appointment of finance professionals may improve governance and financial control.