Investment Risk Analysis: BOWMAN POWER GROUP LIMITED

1. Risk Rating: HIGH

Justification: The company's registered status is listed as "Liquidation," which represents the most severe financial distress indicator available. Additionally, the going concern basis is only supported through June 2026 with reliance on recent emergency shareholder funding, accumulated losses stand at nearly £5.8 million, and working capital is extremely thin at £204K against £2.3M of current liabilities.

2. Key Concerns

Concern 1: Company Status — Liquidation

The most critical red flag is the company status showing "Liquidation." While the in_liquidation field shows False (which may indicate a data discrepancy or recent status change), a Liquidation status on the Companies House register typically means the company is undergoing formal closure proceedings. This supersedes all other financial indicators and suggests creditors or shareholders have initiated winding-up procedures. Any investment consideration is fundamentally incompatible with a company in liquidation.

Concern 2: Going Concern Viability is Extremely Limited

The directors' going concern note reveals significant fragility: - The company relies on its own cash resources for day-to-day working capital - In May 2025, shareholders had to provide £300,000 of short-term working capital funding - The going concern assessment only extends to June 2026 — approximately 18 months from the balance sheet date and barely 12 months from the accounts' signing date (July 2025) - This is a bare-minimum going concern assertion and indicates the company has no financial headroom

Concern 3: Persistent and Deep Operating Losses

The Profit and Loss account shows accumulated losses of £5,789,807 (2024), deteriorating from £4,296,390 (2023). This represents a further £1.49M loss in the year. The company has never generated sufficient retained profits to offset historical losses. With share capital of only £1.48M and share premium of £6.44M, the entire equity structure depends on capital contributions rather than trading performance. The business model has not demonstrated commercial viability over its 20+ year history.

Additional Concern: Working Capital Deterioration

Net current assets fell from £782,738 (2023) to £203,733 (2024) — a 74% decline. Current liabilities of £2.3M are barely covered by current assets of £2.5M, and £970K of those current assets are inventory (which may not be readily realizable). The quick ratio excluding inventory is approximately 0.67, indicating insufficient liquid assets to meet short-term obligations.

3. Positive Indicators

Shareholder Support: The two PSCs (Moulton Goodies Ltd and Ombu Limited) provided £300K in emergency funding in May 2025, demonstrating continued shareholder commitment. The share premium account increased from £4.97M to £6.44M, indicating £1.47M of additional capital was injected in 2024.

Cash Improvement: Cash at bank increased from £368,198 to £590,086, though this appears largely attributable to the shareholder funding rather than operational cash generation.

Asset Growth: Total assets grew from £6.45M to £6.41M (relatively stable), and net assets marginally increased from £2,676,766 to £2,683,437.

Regulatory Compliance: Accounts and confirmation statements are filed on time and not overdue, which suggests the company maintains basic administrative discipline.

4. Due Diligence Notes