Company Number: 13802517

Analysis Date: 2025-07-29 17:27 UTC

1. Credit Opinion: DECLINE
   Carbon Zero Energy Limited shows persistent negative net assets and net current liabilities over the last three years, indicating a weak financial position and inability to cover short-term obligations. The company’s negative equity worsened from -£38,634 in 2022 to -£58,899 in 2023, signaling ongoing financial deterioration. The absence of an audit and the micro entity accounting basis limit transparency and assurance on financial accuracy. Given these factors, the company currently lacks adequate financial strength and liquidity to confidently service additional credit facilities.

2. Financial Strength:
   The balance sheet reveals total current assets of £64,119 against current liabilities of £100,768, resulting in net current liabilities of -£36,649 at the end of 2023. The presence of £22,250 in long-term creditors further burdens the financial position, pushing net liabilities to -£58,899. The company’s shareholders’ funds are negative, reflecting accumulated losses and insufficient capital. The lack of fixed assets and reliance on current assets suggest limited tangible collateral value.

3. Cash Flow Assessment:
   The company’s negative working capital position indicates potential cash flow stress, with current liabilities exceeding current assets by a significant margin. The increase in long-term creditors in 2023 may provide some liquidity relief, but overall cash flow remains constrained. The small employee base (average 2 in 2023) and micro entity status suggest a lean operation; however, cash inflows appear insufficient to cover immediate liabilities without additional funding or operational improvements.

4. Monitoring Points:

• Track changes in net current assets and net liabilities for signs of financial stabilization or further decline.
• Monitor creditor repayment patterns and any restructuring of long-term debt.
• Review directors’ future filings and any strategic plans addressing solvency issues.
• Watch for updated accounts indicating improved profitability or capital injections.
• Assess any changes in ownership or director appointments that might influence financial management.