Company Number: 14811297

Analysis Date: 2025-07-29 14:07 UTC

1. Risk Rating: HIGH
   The company shows significant negative net assets (-£315,946) and liabilities exceeding assets by a wide margin, indicating severe solvency concerns. The extremely high current liabilities (£315,864) relative to current assets (£14,912) suggest immediate liquidity issues.

2. Key Concerns:

• Solvency Risk: The balance sheet reveals total net liabilities, with creditors far exceeding available assets, which threatens the company’s ability to meet its obligations.
• Liquidity Concerns: Current liabilities dwarf current assets, implying potential cash flow problems and inability to cover short-term debts.
• Operational Stability: As a newly incorporated company (April 2023) with only one financial year reported, the business appears undercapitalized and at risk of financial distress early in its operations.

3. Positive Indicators:

• The company is compliant with statutory filing deadlines for both accounts and confirmation statements, indicating good governance in regulatory compliance.
• Ownership and control are clearly consolidated under one director and shareholder, potentially enabling swift decision-making.
• The company operates in the electrical installation sector (SIC 43210), which can have steady demand if managed well.

4. Due Diligence Notes:

• Investigate the nature and terms of the large current liabilities (£315,864) and the £25,000 creditor after one year to understand creditor exposure and payment schedules.
• Review cash flow statements and any interim financial data to assess ongoing liquidity and operational cash requirements.
• Clarify the business model and strategy given the negative equity position and how the company plans to address the financial imbalance.
• Confirm the background and financial capacity of the sole director/shareholder (Julie Elliott), especially given the company’s precarious financial position.
• Assess whether any related party transactions or loans underpin the current liabilities and the risk of further financial support being required.

Executive Summary
RESIDENTIAL SOLAR LIMITED demonstrates a high risk profile due to substantial net liabilities and a liquidity mismatch early in its lifecycle. While regulatory compliance is satisfactory, the company's financial position raises serious concerns about its ability to continue as a going concern without additional capital or operational restructuring. Further detailed financial and operational investigation is essential before considering investment.