Credit Analysis: BOWMAN POWER GROUP LIMITED

1. Credit Opinion: DECLINE

Reasoning: The company's registered status is recorded as "Liquidation" at Companies House, which fundamentally precludes any new credit facility. Regardless of whether this status reflects an administrative error or a formal insolvency process, the risk is absolute — a company in liquidation cannot honor new obligations. Even setting aside this critical status issue, the underlying financial profile presents significant credit concerns: accumulated losses of £5.79M in the P&L reserve, wafer-thin working capital of £204k, and a going concern assessment that only extends to June 2026 (with emergency shareholder funding required in May 2025 to sustain operations). The business requires continued shareholder support to remain solvent, indicating insufficient standalone repayment capacity.

2. Financial Strength

Balance sheet is technically solvent but structurally weak:

Key observations: - Accumulated losses are substantial. The P&L reserve deficit of £5.79M indicates the company has consumed significantly more capital than it has generated over its 20+ year trading history. - Equity is propped up by share premium. The £6.44M share premium (up from £4.97M) shows approximately £1.47M of new equity was injected in 2024. Without this, net assets would be deeply negative. - Intangible assets dominate. At £3.20M, capitalised development costs represent 50% of total assets. These are inherently illiquid and subject to impairment risk if commercialisation stalls. - Tangible asset base is modest at £703k — limited collateral value for secured lending.

Net current assets have deteriorated sharply from £783k (2023) to £204k (2024), a 74% decline driven by falling debtors and rising creditors.

3. Cash Flow Assessment

Liquidity is precarious and dependent on shareholder support:

• Current ratio: £2.50M / £2.30M = 1.09x — barely above 1.0 and down from 1.35x in 2023
• Working capital headroom: Only £204k — insufficient to absorb any meaningful trading disruption
• Cash improved from £368k to £590k, but this is misleading without seeing the cash flow statement; it likely reflects equity injection rather than operational cash generation

Critical going concern disclosure: The accounts explicitly state that in May 2025, shareholders provided £300,000 of short-term working capital funding. This confirms: 1. The company could not self-fund operations just 4 months after year-end 2. The funding is described as "short-term" — not a permanent capital solution 3. The going concern assessment only extends to June 2026, providing minimal visibility

No revenue or profit data is disclosed (the company filed under the small companies regime and opted not to file a profit & loss account), making it impossible to assess operational cash generation, margins, or debt service coverage.

4. Monitoring Points

If credit were to be considered in future (assuming liquidation status is resolved):

Additional red flags: - Two corporate PSCs (Moulton Goodies Ltd and Ombu Limited) each hold 25-50% — potential for governance deadlock - Five directors across multiple nationalities — operational complexity - Subsidiary is dormant — no group diversification benefit - Capitalised development costs require ongoing scrutiny for impairment