EXELOR ENERGY LIMITED

Executive Summary

Exelor Energy Limited is a micro-sized company with limited tangible assets and low cash reserves but maintains a positive net current asset position and increasing shareholder funds. The company’s liquidity is tight, relying on director advances to support working capital. Conditional credit approval is recommended with close monitoring of cash flows, debtor collectability, and creditor payments to mitigate short-term risks.

EXELOR ENERGY LIMITED - Analysis Report

Company Number: 13134278

Analysis Date: 2025-07-29 19:10 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Exelor Energy Limited is a small private limited company with a short trading history since incorporation in 2021. The company shows a modest but positive net current asset position and shareholder funds that have increased slightly year-on-year. However, liquidity is constrained with limited cash balances (£189) and significant reliance on debtors (£706) which appear concentrated and potentially related-party given director advances. The company’s scale, limited asset base (£9 investments), and low capitalisation suggest a cautious approach. Approval is conditional on continued monitoring of cash conversion and debtor collection, as well as confirmation of the nature and collectability of the debtor balances.

2. Financial Strength:
   The balance sheet shows minimal fixed assets (£9) and current assets of £895 at 31/12/2023. Current liabilities stand at £752, yielding net current assets of only £143. Shareholders funds increased from £121 to £152, reflecting retained earnings growth. The company is micro-sized with very low share capital (£1). The increase in debtors from £1 to £706 is material and related to director advances (£705), indicating intra-group or director-related funding rather than external trade receivables. Overall, the company’s financial strength is weak due to low tangible asset backing and limited liquidity, but it is solvent with positive equity.

3. Cash Flow Assessment:
   Cash at bank decreased significantly from £720 in 2022 to £189 in 2023, which may pressure short-term liquidity. The increase in debtors (including director loans) suggests working capital tied up in non-trade receivables. Current liabilities increased from £609 to £752, further tightening liquidity. The company relies on director advances for funding, which are interest-free and repayable within 9 months of year-end, indicating some flexibility in managing cash obligations. Working capital remains positive but tight, warranting careful cash flow monitoring to ensure timely creditor payments.

4. Monitoring Points:

• Debtor balances and their collectability, especially the director advances of £705
• Cash flow trends and ability to maintain adequate cash reserves
• Timely payment of creditors given rising current liabilities
• Future profitability and cash generation to support growth and repay director loans
• Compliance with filing deadlines and any changes in company status or directorship to identify governance risks