Company Number: 12758202

Analysis Date: 2025-07-29 20:09 UTC

1. Risk Rating: MEDIUM
   Greendawn Power Limited exhibits signs of operational activity and compliance with filing obligations but reveals emerging liquidity pressures and reduced net asset value, warranting a moderate risk assessment.

2. Key Concerns:

• Liquidity Deterioration: The company’s net current assets shifted from a positive £2,428 in 2023 to a negative £2,178 in 2024, indicating potential short-term cash flow strain. This is further evidenced by a significant increase in current liabilities (from £62,239 to £149,687), particularly accruals and deferred income.
• Declining Net Assets and Profit Reserves: Net assets reduced substantially from £3,834 in 2023 to £1,962 in 2024, and the profit and loss reserve similarly declined, suggesting the company may have incurred losses or distributions that exceed profits.
• Concentration of Control: The sole director and 100% shareholder is Mr. Joseph Alexander Taylor. While this is common in small private companies, it concentrates decision-making risk and may impact governance robustness and succession planning.

3. Positive Indicators:

• Compliance and Timeliness: The company is active and current with its statutory filings, with no overdue accounts or confirmation statements, indicating good regulatory compliance.
• Growth in Fixed and Current Assets: Fixed assets increased markedly from £1,736 to £5,520, and current assets more than doubled, largely driven by increases in debtors and stock, which may reflect business growth or expanding operations.
• Established Operational Base: The company operates in a niche but growing sector—electrical installation with a focus on EV charger installation—potentially benefiting from market tailwinds.

4. Due Diligence Notes:

• Debtor Quality and Credit Risk: Investigate the age profile and collectability of the substantial increase in trade debtors (£30,636 to £105,360) to assess cash conversion risk.
• Accruals and Deferred Income: Explore the reasons behind the large increase in accruals and deferred income (£2,600 to £86,709) to understand if these represent genuine future obligations or accounting timing differences.
• Director Loans and Dividends: Review the terms and implications of the director loan account (£9,989) and recent dividend payments (£56,500 in 2024) relative to profitability and cash flow.
• Profitability Trends: Obtain or request profit and loss statements to assess the underlying profitability and cash generation trends beyond balance sheet snapshots.