ECOSOLV RENEWABLES LTD

Executive Summary

ECOSOLV Renewables Ltd exhibits a marked financial improvement in its latest accounts, reversing prior liquidity concerns and maintaining compliance with filing requirements. While the company remains small with concentrated ownership, its strengthened balance sheet and active trading status suggest low immediate risk. Further examination of cash flow sustainability and governance structures is recommended to validate ongoing operational stability.

ECOSOLV RENEWABLES LTD - Analysis Report

Company Number: 12725056

Analysis Date: 2025-07-29 15:58 UTC

1. Risk Rating: LOW
   ECOSOLV Renewables Ltd demonstrates a solid improvement in net assets and working capital over the latest financial year, with no overdue filings and an active operational status. The micro-entity scale and consistent compliance reduce regulatory risk.

2. Key Concerns:

• Historically negative working capital in prior years (2021-2023) indicates past liquidity challenges, although recently reversed.
• Limited scale as a micro-entity may constrain operational resilience and ability to absorb shocks.
• Concentrated ownership and control (one individual holds 75-100% shares and voting rights) could present governance risks if not mitigated.

3. Positive Indicators:

• Significant turnaround in financial position by March 2024 with net current assets increasing from negative £9,717 to positive £101,530 and net assets rising from £3,301 to £140,162.
• No overdue accounts or confirmation statements, indicating good regulatory compliance.
• Active website presence and clear business focus in renewable energy installation suggest ongoing operational activity and market engagement.
• Small, manageable employee base (average 3 employees) consistent with micro-entity status, facilitating operational control.

4. Due Diligence Notes:

• Review cash flow statements or management accounts to confirm sustainability of liquidity improvements and absence of short-term cash flow pressures.
• Assess the nature of the significant jump in current assets and net assets between 2023 and 2024 for one-off effects or capital injections.
• Evaluate governance practices given the concentrated control by a single PSC, including any related-party transactions or director conflicts.
• Confirm ongoing customer pipeline and contract backlog supporting future revenue streams in the renewable energy sector.