CARMICHAEL BROWNS RENEWABLES LTD

Risk Rating: HIGH Justification: The company has exhibited persistent net liabilities for five consecutive years (2021–2025), reports zero employees despite claiming to be a "leading" installer, and maintains a negligible asset base for a company operating in the construction sector for over a decade. While the net liability position improved marginally in the latest year, the company remains technically insolvent and lacks the financial substance or operational scale expected of a stable investment target.

Key Concerns: - Technical Insolvency: The company has reported negative net assets (shareholders' funds) consistently since 2021. As of March 2025, total liabilities (£8,561) exceed total assets (£8,517), resulting in a £44 deficit. Without explicit evidence of director support or a formal waiver on repayment of debts, the company's status as a going concern is questionable. - Operational Disconnect: The website describes the business as "Leading Solar Panel Installers" helping businesses across the UK. However, the filed accounts explicitly state the average number of employees, including directors, was NIL for both 2024 and 2025. This severe discrepancy raises questions about whether the company is actively trading, utilizing unrecorded sub-contractors, or if the website claims are outdated or aspirational. - Anomalous Financial History: The financial history reveals a highly irregular trading pattern. In 2019, total assets and current liabilities inexplicably spiked to approximately £134k and £133k respectively, driven almost entirely by cash and corresponding creditors, before collapsing back to near-zero in subsequent years. This suggests the company may have acted as a temporary conduit for funds rather than engaging in steady, sustainable operations.

Positive Indicators: - Regulatory Compliance: The company is actively registered, and its statutory filings (accounts and confirmation statements) are up to date and not overdue. It has properly claimed the micro-entity exemptions and filed accordingly. - Recent Balance Sheet Improvement: While still negative, the net asset position improved significantly from £-3,774 in 2024 to £-44 in 2025. The introduction of £8,517 in current assets (up from £0) suggests a potential resumption of project activity or asset acquisition, albeit funded by a corresponding increase in creditors. - Stable Governance: The company has maintained a simple, unchanged ownership and directorship structure since incorporation, with two directors who each hold between 25% and 50% of the shares, indicating alignment of control and management.

Due Diligence Notes: - Nature of Creditors: It is critical to determine the composition of the £8,561 in current liabilities. Given the zero-employee status and lack of institutional debt indicators, it is highly probable these are director loans or related party balances. If they are director loans, the technical insolvency risk is mitigated by the directors' willingness to keep funds in the business; if they are trade creditors, it indicates a cash flow risk. - Operational Verification: The complete absence of payroll must be investigated. An investor needs to understand how the company fulfills installation contracts—whether through sub-contractors, personal effort of the directors (not reflected in payroll), or if the company is essentially dormant and the website is misleading. - 2019 Transaction Context: Specific inquiry should be made regarding the 2019 financial year. The sudden influx and subsequent outflow of £134k requires explanation to rule out adverse transactions, such as money laundering, or to understand if this was a legitimate, one-off project that failed to generate retained profits.