GRAVIS SOLAR EV LIMITED

Executive Summary

GRAVIS SOLAR EV LIMITED is a newly incorporated small private company showing early signs of financial strain with negative net assets and liquidity pressure. The company relies heavily on intra-group loans and interest income, with limited operational activity. While the going concern status is currently supported by group backing, strengthening equity, improving liquidity, and diversifying revenue are essential steps to stabilize and improve financial health.

GRAVIS SOLAR EV LIMITED - Analysis Report

Company Number: 14554527

Analysis Date: 2025-07-29 15:57 UTC

Financial Health Assessment for GRAVIS SOLAR EV LIMITED

---

1. Financial Health Score: D

Explanation:
The company is in its infancy (incorporated late 2022) and reporting a net liability position of £28 at its first financial year-end with minimal activity. The small size of the business and negative net assets reflect early-stage financial distress, akin to a patient showing initial symptoms of illness but with potential for recovery if properly managed.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	0	No long-term tangible or intangible assets, indicating limited operational infrastructure.
Current Assets (Debtors)	806	Loans to associate undertakings represent the main current asset, indicating financial support or investment within the group.
Current Liabilities	834	Short-term debts mainly loans from group undertakings and accruals; slightly exceeding current assets.
Net Current Assets	-28	Negative working capital ("symptom of liquidity stress"), indicating short-term obligations exceed readily available assets.
Net Assets (Shareholders Funds)	-28	Negative equity position, indicating the company’s liabilities exceed its assets, a sign of financial strain.
Share Capital	1	Minimal equity capital, reflecting early-stage company with little shareholder funding.
Profit/Loss for Period	-28	Loss incurred in first period, typical for start-ups but a sign of early financial strain.
Going Concern Statement	Yes	Directors assert the company can meet liabilities for next 12 months, supported by group backing.

---

3. Diagnosis: Financial Condition Overview

GRAVIS SOLAR EV LIMITED is at a fragile stage, much like a patient recently admitted with initial symptoms of illness. The negative net assets and negative working capital reflect early financial distress. The company currently operates as a financial intermediary, generating revenue solely from interest on loans to associate undertakings, while incurring interest expenses on its own borrowings from the parent group.

The absence of fixed assets and minimal equity capital indicate a business still in the incubation phase, reliant on related-party financing and support. The working capital deficit signals potential liquidity pressures if external or group support were withdrawn.

However, the going concern statement by directors, citing group support and the ability to meet debts as they fall due, suggests the company is under close financial supervision and has a safety net, analogous to a patient under observation with access to emergency care if needed.

The multiple board changes in the first year show active management restructuring, which can be a response to early operational challenges or strategic realignment.

---

4. Recommendations: Improving Financial Wellness

• Strengthen Equity Base: Consider additional capital injections from shareholders or group companies to improve the net asset position. This would be like administering a strengthening tonic to improve the patient's resilience.

• Enhance Liquidity Management: Monitor and manage working capital carefully. The company should aim to increase current assets or reduce current liabilities, to alleviate liquidity strain symptoms.

• Diversify Revenue Streams: As currently revenue depends solely on interest income from loans, explore operational activities aligned with primary business objectives to build sustainable income and reduce reliance on intra-group loans.

• Cost Control: Evaluate interest costs on borrowings and negotiate better terms if possible, reducing the financial burden and improving net profitability.

• Regular Financial Monitoring: Establish frequent internal financial reviews to detect early warning signs of liquidity or profitability issues, akin to regular health check-ups.

• Governance Stability: Stabilize the board composition to provide consistent strategic direction and oversight, which is crucial for recovery and growth.

• Transparency and Compliance: Maintain timely filings and transparent disclosures to avoid penalties and maintain stakeholder confidence.

---