Company Number: 12544953

Analysis Date: 2025-07-20 11:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   GULERMAK RENEWABLES LTD (formerly GÜLERMAK UK LIMITED) shows a significant improvement in its financial position in the most recent year ended 31 December 2023, moving from a net liability position (£-28,780 in 2022) to a net asset position (£12,766 in 2023). This turnaround is largely driven by a reduction in current liabilities and a more manageable working capital position. However, the company remains small with limited capital and operates as a subsidiary within a corporate group, which may imply dependency on the parent company for financial support. Credit approval is recommended with conditions that monitor cash flow stability and working capital management going forward.

2. Financial Strength:

• The balance sheet shows total current assets of £41,816 with cash of £32,589 and debtors of £9,227 at the end of 2023.
• Current liabilities have been substantially reduced to £29,050 from £697,550 in 2022, improving net current assets to £12,766.
• Shareholders’ funds are positive at £12,766, indicating an equity buffer, though still modest.
• The company carries minimal share capital (£1), suggesting limited equity investment.
• Prior years’ accounts reflect volatility, with significant liabilities in 2021 and 2022, which raises concerns about past financial resilience.
• The company is a wholly owned subsidiary of a Turkish parent company, indicating potential group support but also exposure to cross-border risks.

3. Cash Flow Assessment:

• Cash balance improved to £32,589 in 2023, more than doubling from £12,951 in 2022, indicating improved liquidity.
• Net current assets are positive, signaling working capital sufficiency to cover short-term liabilities.
• The company has no long-term debt reported, reducing solvency risk, but the small cash buffer means liquidity could be vulnerable to unexpected expenses or delayed receivables.
• Related party transactions with the parent and affiliated companies were significant (£1.24 million in 2023), implying the company’s cash flow may be influenced by group activity rather than independent trading cash flows.

4. Monitoring Points:

• Continued improvement or stability in net current assets and cash balances to ensure liquidity is maintained.
• Monitor related party transactions to assess dependency risk and confirm these do not impair the company’s independent ability to meet obligations.
• Watch for changes in working capital components, especially trade creditors and debtors, to avoid recurrence of prior years’ large liability positions.
• Confirm ongoing support and financial backing from the parent company, as the company’s scale and equity base are limited.
• Track timely filing of accounts and confirmation statements to ensure regulatory compliance.