GARREG FAWR ENERGY PARK LIMITED

Executive Summary

GARREG FAWR ENERGY PARK LIMITED presents a high solvency and liquidity risk profile due to significant net current liabilities and absence of fixed assets or employees. While the company remains compliant with filings and is under active control with experienced directors, its financial position suggests operational and cash flow challenges. Further investigation into the composition of liabilities and parent company support is recommended to clarify ongoing viability.

GARREG FAWR ENERGY PARK LIMITED - Analysis Report

Company Number: 13052403

Analysis Date: 2025-07-29 14:25 UTC

1. Risk Rating: HIGH
   The company shows significant negative net current assets (liabilities) of £318,338 as of 31 March 2024, indicating it is unable to cover its short-term obligations. The financial data reveals a worsening liquidity position compared to prior years, with current liabilities rising substantially while current assets remain very low. No fixed assets or employees are reported, suggesting limited operational activity or asset base.

2. Key Concerns:

• Severe Liquidity Deficit: Net current liabilities have increased from approximately £120k in 2023 to over £318k in 2024, signaling cash flow stress and potential inability to meet short-term debts.
• Lack of Tangible Assets and Employees: Zero fixed assets and no reported employees raise questions about the company’s operational capacity and sustainability.
• Concentrated Ownership and Control: 75-100% ownership and control reside with related entities (Bute Energy Development Holdings Ltd and Bute Energy (Cambria) Ltd), which could pose governance risks if financial support is withdrawn.

3. Positive Indicators:

• Current Filing Status: The company is up to date with its accounts and confirmation statement filings, indicating compliance with statutory requirements.
• Active Status: The company is active and not under liquidation or administration, which suggests it is not currently subject to formal insolvency procedures.
• Experienced Directors and Corporate Secretary: Presence of multiple directors with relevant occupations and a corporate secretary firm may support governance processes.

4. Due Diligence Notes:

• Investigate the nature and terms of the current liabilities (£329,849), including whether these are related party loans, trade creditors, or other debts.
• Clarify the source of working capital and whether the parent or related companies have guaranteed or will continue to support cash flow needs.
• Review any contingent liabilities or off-balance sheet commitments not disclosed in the micro-entity accounts.
• Assess the business model and plan to understand how the company intends to generate sufficient revenue or capital to improve its financial position.
• Confirm absence of director disqualifications or regulatory issues beyond what is available in the provided data.