Company Number: 14469558

Analysis Date: 2025-07-20 13:12 UTC

1. Risk Rating: HIGH

Justification: The company shows significant net liabilities (£898,570) and negative working capital (£127,274) as of the last financial year-end. Current liabilities substantially exceed current assets, indicating liquidity stress. The company is a recently incorporated small private entity with limited operating history and relies on parent company financial support to continue as a going concern.

2. Key Concerns:

• Negative net assets and substantial net current liabilities indicate solvency risk and potential difficulty meeting short-term obligations without external support.
• Heavy reliance on financial support from the parent company (Greenvolt Energias Renovaveis, S.A.) to meet liabilities as disclosed in the directors’ going concern statement.
• Large non-current borrowings (£716,954) and employee long-term incentive liabilities (£68,001) add financial burden and future cash outflow commitments that may strain liquidity.

3. Positive Indicators:

• The company is active, compliant with filing deadlines, and has an unqualified audit report, indicating adequate governance and reporting practices.
• It is part of a larger corporate group with an ultimate parent in Portugal, which may provide strategic benefits and funding stability.
• Tangible fixed assets and investments, albeit small, suggest some operational setup and capital investment.

4. Due Diligence Notes:

• Investigate the terms, duration, and conditions of the borrowings and intercompany balances to assess repayment risk and parent company support reliability.
• Review the group’s consolidated accounts (Greenvolt Energias Renovaveis, S.A.) for overall financial health and group-level risk exposure.
• Assess the company's business model and cash flow projections to understand the path to profitability and operational sustainability.
• Examine the nature and valuation of the employee long-term incentive plans and their impact on future cash flows.
• Confirm the lease commitments and any obligations that may affect liquidity.