Company Number: 14723658

Analysis Date: 2025-07-20 16:38 UTC

1. Risk Rating: LOW

The financial data and company information indicate a low risk profile for Witter Farming Limited. The company has significant net current assets and shareholders’ funds relative to its current liabilities, is compliant with filing deadlines, and shows no indication of financial distress or governance issues.

2. Key Concerns:

• Short Operating History: Incorporated in March 2023, the company has a limited track record, which constrains the ability to assess long-term performance and resilience.
• Related Party Control: The ultimate controlling party is Witter Bros Limited, suggesting potential related party transactions or dependency which should be monitored closely.
• Director Turnover: Two directors resigned within the first two years, which although not unusual for a new company, merits consideration regarding governance stability.

3. Positive Indicators:

• Strong Liquidity Position: Cash balance of £873k against current liabilities of £486k provides a comfortable liquidity buffer.
• Positive Working Capital: Net current assets of £570k indicate ability to meet short-term obligations.
• On Time Filings and Compliance: No overdue accounts or confirmation statements, indicating good governance and regulatory compliance.
• Clear Industry Focus: Primary SIC code 1410 (Raising of dairy cattle) suggests a focused operational activity aligned with directors’ occupations (farmers).
• Shareholders’ Funds: Equity of £570k reflects solid capitalization for a new business.

4. Due Diligence Notes:

• Review the relationship and transactions between Witter Farming Limited and its ultimate controlling party, Witter Bros Limited, to identify any related party risks or dependencies.
• Assess the business plan and projections given the limited trading history to understand growth prospects and sustainability.
• Investigate reasons behind director resignations to confirm stability and governance quality.
• Verify the valuation approach for debtors and stocks to ensure realism in asset quality.
• Monitor tax and social security liabilities (£265k) closely to ensure no buildup of unpaid obligations.