SOLAR MAINTENANCE SOLUTIONS LIMITED

Executive Summary

Solar Maintenance Solutions Limited is a micro-entity showing a declining financial position with very limited net assets and working capital. The company remains active but has a tight liquidity position. Credit facilities may be considered on a conditional basis with close ongoing monitoring due to the small equity base and modest cash reserves.

SOLAR MAINTENANCE SOLUTIONS LIMITED - Analysis Report

Company Number: 13216999

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

1. Credit Opinion:
   CONDITIONAL APPROVAL. Solar Maintenance Solutions Limited is a very small micro-entity with limited financial resources and a declining net asset position over recent years. While the company remains active and solvent, its net current assets and shareholders' funds have significantly decreased from £13,468 in 2021 to £1,487 in 2024, indicating weakening financial stability. The small working capital buffer and low equity base suggest limited ability to withstand financial stress or absorb shocks. Approval for credit facilities should be conditional on close monitoring of cash flows and possibly personal guarantees or additional security due to the modest financial strength and short trading history.

2. Financial Strength:
   The company’s balance sheet shows a sharp decline in net current assets from £15,378 in 2021 to £1,487 in 2024 and a decrease in net assets from £13,468 to £1,487 over the same period. Current liabilities remain high relative to current assets, which constrains liquidity. The company has minimal share capital (£2) and retains no significant reserves, reflecting a micro-entity profile with constrained capital. The decline in net assets could be due to accumulated losses or asset write-downs, which raises concerns about the company’s sustainability without additional capital injection or improved profitability.

3. Cash Flow Assessment:
   Current assets of £12,000 against current liabilities of £10,513 as of the latest accounts provide a very narrow working capital margin (£1,487). The limited net current assets suggest tight liquidity, leaving little room to cover unexpected expenses or delays in receivables. The reported average employee count has increased slightly from 1 to 2, which may add expense pressure. Without detailed cash flow statements, the small cash buffer implies potential vulnerability to cash flow shortfalls, especially given the drop from prior years. The company should maintain strong receivables management and control costs carefully.

4. Monitoring Points:

• Monitor quarterly trading results and cash flow forecasts to ensure liquidity remains positive.
• Watch for any increases in current liabilities or deterioration in working capital.
• Pay attention to any late filings or changes in director appointments, as stability of management is important.
• Keep track of any capital injections or changes in ownership/control that could affect credit risk.
• Assess the impact of market conditions on the niche solar maintenance sector, especially competition and contract renewals.