ENERGY TRANSITION ADVISORY LTD

Executive Summary

Energy Transition Advisory Ltd shows a marked improvement in liquidity and net assets in its most recent financial year, moving from negative equity to a positive position. While the company remains small and early-stage with limited operational data, it maintains good compliance and no regulatory concerns. Further due diligence on cash flow sustainability and asset quality is recommended to confirm ongoing financial stability.

ENERGY TRANSITION ADVISORY LTD - Analysis Report

Company Number: SC708367

Analysis Date: 2025-07-29 20:25 UTC

1. Risk Rating: LOW
   The company demonstrates a positive net asset position and improved working capital in the latest financial year. It is current on statutory filings and shows no signs of liquidation or administration.

2. Key Concerns:

• Historical negative shareholders’ funds in 2022 and 2023 indicate prior losses or capital deficiency that could reflect early-stage operational challenges.
• The absence of employees suggests reliance on directors or contractors, which may limit operational capacity or scalability.
• Limited financial disclosures typical of micro-entity accounts provide minimal insight into revenue trends, cash flow, or profitability, restricting comprehensive risk assessment.

3. Positive Indicators:

• The significant improvement in current assets (from £2,175 to £36,720) and a positive net working capital position (£25,279) as of September 2024 indicates strengthening liquidity.
• Shareholders’ funds have turned positive (£24,559) in the latest year, suggesting capital injection or profitability improvements.
• The company’s compliance with filing deadlines and absence of overdue accounts or confirmation statements reflects good governance and regulatory compliance.
• Director control is transparent, with no disqualifications or governance issues noted.

4. Due Diligence Notes:

• Verify the nature and sustainability of current assets contributing to liquidity, ensuring they are realizable and not overstated.
• Obtain management accounts or cash flow statements to assess ongoing operational cash flows and profitability beyond balance sheet snapshots.
• Understand business model and client base given zero employees, clarifying reliance on subcontractors or director involvement.
• Review any related party transactions or capital contributions from the principal shareholders to explain the turnaround in net assets.
• Confirm no contingent liabilities or off-balance-sheet exposures exist that could impair solvency.