CompaniesInTheUK

WINDSOR FOREST FARM LTD

Company number 07159612 ·

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This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.

Investment Risk Analysis: WINDSOR FOREST FARM LTD (07159612)

1. Risk Rating: MEDIUM-HIGH

The company presents a concerning liquidity profile despite maintaining positive net assets. Cash reserves have deteriorated by 96% over two years (from £111,940 in 2023 to £3,988 in 2025), while current liabilities have increased by 27% to £193,539. The P&L reserve declined by £41,608 during the year, suggesting operating losses. While solvency is not immediately threatened due to positive net assets of £411,294, the company's ability to meet near-term obligations from liquid resources is severely constrained.

2. Key Concerns

Concern 1: Critical Cash Position

Cash at bank has fallen to just £3,988 against current liabilities of £193,539. The quick ratio (excluding debtors) stands at approximately 0.02, indicating the company has virtually no liquid reserves to meet obligations. The two-year decline from £111,940 to £3,988 represents a sustained cash drain that warrants explanation.

Concern 2: Director Loan Extraction

Related party disclosures reveal £159,200 owed to the company by the directors (up from £119,400 in 2024). This represents 73% of total debtors and 39% of current assets. The concentration of assets in director loans raises questions about whether these funds are recoverable on demand and whether this constitutes effective equity extraction. Interest is charged at only 2.25%, which may be below market rates.

Concern 3: Corporation Tax Liability Surge

Corporation tax payable within one year has increased from £18,134 to £95,743 — a 428% increase. This suggests significant taxable profits in the period, yet the P&L reserve has declined and cash has fallen. This apparent inconsistency requires investigation. The company must fund this liability from already-depleted cash resources or debtor collections.

3. Positive Indicators

  • Historical Recovery: The company has demonstrably recovered from deeply negative net assets (£-490,098 in 2016) to a positive position of £411,294 in 2025. This indicates management capability in restructuring the business.

  • Regulatory Compliance: Accounts and confirmation statements are filed on time with no overdue status. The company has maintained active status throughout its 15-year history.

  • Asset-Backed Position: Net assets of £411,294 and total assets of £759,808 provide a buffer against insolvency, even if liquidity is strained. The investment in group undertakings (£481,900) represents a significant asset, though its realisability needs assessment.

  • Controlled Long-term Debt: Creditors falling due after more than one year have decreased from £181,685 to £140,585, suggesting gradual deleveraging.

4. Due Diligence Notes

Item Investigation Required
Group Investment (£481,900) This investment in "shares in group undertakings and participating interests" has remained static since at least 2024. Need to identify the underlying entity, assess its financial health, and determine whether this asset is realisable or impaired.
Director Loan Terms The £159,200 director loan has increased year-on-year. Repayment terms, security, and whether this is effectively disguised equity should be established. Confirm whether loans are formally documented and subordinated.
Corporation Tax Reconciliation The significant increase in corporation tax from £18,134 to £95,743 appears inconsistent with declining P&L reserves and falling cash. Request the profit and loss account (not filed) and tax computations to understand this divergence.
Other Creditors Composition Current "other creditors" of £74,614 and long-term "other creditors" of £140,585 are material but unspecified. The nature of these obligations — whether trade, financing, or related party — should be clarified.
Provisions (£14,390) New provision recognised in 2025 with no prior year equivalent. The nature and expected timing of this liability should be disclosed.
Debtors Ageing With £210,357 in "other debtors" (predominantly director loans), the recoverability and ageing of this balance is critical to working capital assessment.
Cash Flow Forecasting Given the critically low cash position, request 12-month cash flow projections to assess whether the company can meet its obligations as they fall due, particularly the £95,743 corporation tax liability.
P&L Account The directors have elected not to include the profit and loss account. Request this directly from management to understand revenue trends, cost structures, and the reason for the declining P&L reserve.

Perspective: Investment Risk Assessor · Model: glm-5.1 · Generated 28 August 2026