NRG BUILD LTD

Executive Summary

NRG BUILD LTD currently exhibits a weak financial profile characterized by negative net assets and minimal liquidity, indicating high credit risk. The company’s short operating history and absence of profitability undermine its ability to service debt or sustain operations without additional support. Credit facilities are not recommended at this stage without significant financial improvements or guarantees.

NRG BUILD LTD - Analysis Report

Company Number: 14201633

Analysis Date: 2025-07-29 19:25 UTC

1. Credit Opinion: DECLINE
   NRG BUILD LTD demonstrates a weak financial position with negative net assets of £3,501 as of 30 June 2024 and minimal cash (£2). The company’s balance sheet shows ongoing losses reflected in a deteriorated profit and loss reserve (-£3,601). Despite being operational and compliant with filing requirements, the lack of liquidity and negative equity indicate poor capacity to service debt or meet financial obligations. There is no audit or detailed income statement provided, which limits transparency. Given the company’s short operating history (incorporated mid-2022) and evidence of losses, credit risk is high. Approval of credit facilities is not recommended without significant mitigating factors or guarantees.

2. Financial Strength:
   The company’s net current liabilities (£3,501) and negative shareholders’ funds reflect a fragile balance sheet. There are no fixed assets or tangible security apparent. The share capital is minimal (£100), indicating limited capital buffer. The negative retained earnings imply cumulative operating losses since formation. This puts the company in a vulnerable position to shocks or downturns. The company’s small scale (2 employees) and limited operating history further constrain its financial strength.

3. Cash Flow Assessment:
   Liquidity is critically low with only £2 cash available at year-end. Although current liabilities are only £3,503, the negligible cash balance and negative working capital suggest severe cash flow stress. There is no evidence of incoming cash flow or turnover figures in the accounts, but the negative reserves imply insufficient profitability to generate internal funds. The company may face difficulties meeting short-term obligations without external financing or shareholder support.

4. Monitoring Points:

• Monitor quarterly cash flow statements and bank balances closely.
• Track any changes in equity or capital injections to improve liquidity.
• Watch for improvement in profitability and positive net assets in future filings.
• Observe director stability and any changes in management strategy.
• Follow up on any overdue payments or supplier disputes indicating financial stress.