BRACO ENERGY STORAGE HOLDING LIMITED

Executive Summary

Braco Energy Storage Holding Limited is a recently incorporated holding company with no operational turnover and substantial shareholder loan liabilities. While it remains solvent with positive net assets and parent company support, negative working capital and ongoing losses highlight liquidity and financial risk in the short term. Compliance with filing obligations is current, but further review of funding arrangements and group cash flows is recommended for a comprehensive risk assessment.

BRACO ENERGY STORAGE HOLDING LIMITED - Analysis Report

Company Number: 14992298

Analysis Date: 2025-07-29 18:00 UTC

1. Risk Rating: MEDIUM
   The company is solvent with positive net assets (£1,186,966) and shareholders’ funds (£1,810,576). However, significant current liabilities (£792,405) exceed current assets (debtors £167,510), resulting in negative net current assets (-£624,895), which indicates potential short-term liquidity pressure. The large shareholder loan (£7,247,448) and accrued interest on that loan represent considerable financial obligations.

2. Key Concerns:

• Liquidity Risk: Negative net current assets suggest the company may struggle to meet short-term liabilities without additional funding or cash inflows.
• High Leverage: The company carries significant long-term debt in the form of a shareholder loan (£7.25M), with accrued interest of £786k, which may impose heavy financial strain.
• No Operating Revenue: The company reported zero turnover and a net loss (£624,896) for the period, indicating it is currently not generating operational income and relies on financing or group activities.

3. Positive Indicators:

• Strong Parent Support: The shareholder loan is from the parent company (Foresight Energy Infrastructure Partners 1 S.À R.L.), suggesting potential for ongoing financial backing.
• Net Asset Position: Despite losses and liabilities, the company’s net assets remain positive and substantial relative to share capital.
• Clear Compliance: The company is current on filings with no overdue accounts or confirmation statements, indicating good governance and regulatory compliance.

4. Due Diligence Notes:

• Investigate the terms and repayment schedule of the shareholder loan and interest obligations to assess refinancing or repayment risk.
• Review the underlying group structure and cash flow arrangements, particularly the subsidiary Braco Energy Storage Limited and its financial health.
• Examine the strategic plan and funding outlook to understand how the company intends to address the current lack of revenue and improve liquidity.