Company Number: 13053446

Analysis Date: 2025-07-20 18:47 UTC

1. Risk Rating: HIGH
   The company shows persistent net liabilities and negative shareholders' funds, indicating solvency challenges. Current assets slightly exceed current liabilities, but significant long-term liabilities create an overall negative equity position.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company’s net assets were negative in 2020, 2022, and 2023, worsening to a negative £10,795 in 2023, signaling ongoing insolvency risk.
• Long-Term Creditors Exceed Current Assets: Creditors due after one year were £388,040 in 2023, which is substantially higher than current assets (£396,650), indicating high leverage and potential difficulties in meeting long-term obligations.
• No Employees and Minimal Share Capital: The company has no employees and a nominal share capital (£1.00), which may indicate limited operational capacity or early-stage development without substantial capital backing.

3. Positive Indicators:

• Timely Filing Compliance: The company is current with both accounts and confirmation statement filings, demonstrating regulatory compliance and governance discipline.
• Increasing Current Assets: The current assets increased significantly from £71,084 in 2022 to £396,650 in 2023, which may reflect improved liquidity or asset acquisition.
• Active Status with No Liquidation or Administration: The company remains active and not under any insolvency proceedings, suggesting it is still operational.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term liabilities (£388,040) to assess repayment schedules and any potential covenant breaches.
• Review cash flow statements or bank statements (not provided) to evaluate liquidity and ability to cover short-term obligations.
• Clarify business model viability given no employees and minimal share capital, especially in an industry involving electricity production which may require substantial investment.
• Assess director backgrounds and any related party transactions, particularly with recent director changes, to understand governance quality and potential risks.
• Confirm if there are any contingent liabilities or off-balance sheet commitments not reflected in the micro-entity accounts.