Company Number: NI681813

Analysis Date: 2025-07-29 15:54 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net assets, significant current liabilities exceeding current assets, and sustained operating losses, indicating high solvency and liquidity risk.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The net liabilities position worsened from -£125,156 in 2023 to -£22,968 in 2024, reflecting continued accumulated losses and erosion of equity.
• Working Capital Deficiency: Net current liabilities remain substantial (-£221,940 in 2024), with current liabilities nearly four times current assets, signaling potential cash flow and short-term liquidity difficulties.
• Related Party Balances: Significant creditor balances to MPG Wind Ltd (a related party) totaling -£257,880, interest-free and repayable on demand, may indicate reliance on related party financing rather than independent cash generation.

3. Positive Indicators:

• Growth in Tangible Fixed Assets: Tangible assets increased to £441,972 in 2024 from £327,452 in 2023, suggesting capital investment possibly in operational wind turbines.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, reflecting compliance with statutory requirements.
• Change in Control Structure: Ash Renewables Limited now holds majority control (75-100%) since April 2024, potentially indicating new strategic backing or restructuring.

4. Due Diligence Notes:

• Investigate the nature and terms of the £257,880 related party creditor balance with MPG Wind Ltd, including repayment plans or any guarantees.
• Assess the company's cash flow forecasts and plans to address the ongoing working capital deficit and negative equity position.
• Review contracts and operational status of wind turbines to confirm revenue generation capacity and sustainability of business operations.
• Verify the impact of deferred tax assets and liabilities, and whether tax losses are likely to be utilized.
• Clarify the implications of the recent change in directors and majority shareholder (Ash Renewables Limited), including any capital injections or strategic changes.