Company Number: 13272189

Analysis Date: 2025-07-20 17:49 UTC

1. Risk Rating: MEDIUM

Justification: C & S ENERGY LIMITED is an active private limited company incorporated in 2021 and engaged in the capital-intensive trade of electricity, specifically developing utility-scale battery storage linked to the UK grid. The latest accounts show minimal financial activity with net assets of only £100 as of 2022 and a small loss (£920) in 2023. The company has no turnover reported and limited tangible assets. While the auditors have expressed no material uncertainty about going concern, the company is in an early, development phase with limited financial resources and no revenue to date, which elevates the risk profile to medium.

2. Key Concerns:

• Lack of Revenue and Operating Profit: The company reported zero turnover and negligible operating profit/loss, indicating it is pre-revenue and likely in an investment/build phase without cash inflows from operations.
• Minimal Net Assets and Capitalization: Share capital and net assets remain very low (£100 in 2022, negative shareholders’ funds reported in 2023), highlighting limited equity cushion against risks and potential funding challenges.
• High Concentration of Control and Director Changes: The controlling interest is held by Atlantic Green UK Limited (75-100% shares and voting rights), with multiple director appointments and resignations in a short period, which may imply governance instability or restructuring.

3. Positive Indicators:

• Timely Filing and Compliance: The company’s statutory accounts and confirmation statements are up to date with no overdue filings, showing adherence to regulatory requirements.
• Auditor’s Clean Opinion and Going Concern Confirmation: The independent auditors reported a clean audit opinion with no material uncertainty about going concern, indicating reasonable confidence in management’s forecasts and liquidity.
• Strategic Focus on a Growing Sector: The company’s business model targets utility-scale battery storage, an area aligned with UK energy transition goals, potentially positioning it well for future growth and regulatory support.

4. Due Diligence Notes:

• Review Detailed Cash Flow Forecasts and Funding Arrangements: Given the capital-intensive nature and lack of revenue, it is critical to assess the robustness of equity and debt funding plans to sustain operations and project development.
• Investigate Directors’ Backgrounds and Governance Changes: The multiple director changes and foreign nationalities warrant further inquiry into management stability, decision-making processes, and any potential conflicts of interest.
• Assess Contractual and Supply Chain Risks: The strategic report highlights supply chain and currency risks related to overseas manufacturing; examine contracts, hedging policies, and risk mitigation effectiveness.
• Confirm Current Financial Position and Recent Activity: The latest available financials are for 2022 and 2023; obtaining up-to-date management accounts or cash position is important to evaluate ongoing liquidity.