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.