Company Number: 14738319

Analysis Date: 2025-07-29 13:44 UTC

1. Risk Rating: HIGH
   Solarnova Limited exhibits significant solvency concerns, with net current liabilities of £3,946 and negative shareholders’ funds of £3,946 as at 31 March 2024. The company’s total assets less current liabilities are negative, indicating it currently owes more than it owns. The company is in its first financial year and appears to be in the early stages of trading with limited capital.

2. Key Concerns:

• Negative Net Current Assets and Shareholders’ Funds: The company’s working capital position is negative (£-3,946), suggesting liquidity constraints and potential difficulty meeting short-term obligations as they fall due.
• Limited Financial Resources: Share capital is minimal (£400), and accumulated losses (profit and loss account) are -£4,346, reflecting initial expenses or operating losses without offsetting income. This may require additional capital injection or financing to sustain operations.
• Concentration of Control and Management: Four individuals each hold between 25-50% shares and voting rights, with one director having the right to appoint/remove directors. This concentration may pose governance risks if disputes arise.

3. Positive Indicators:

• Compliance with Filing Requirements: The company has filed its first accounts and confirmation statement on time, indicating good regulatory compliance so far.
• Clear Industry Focus: Classified under SIC 43210 (Electrical installation), the company operates in a defined trade sector with identifiable market demand.
• Experienced Directors: At least one director (Yannick Rowe) is an electrician by occupation, aligned with the company’s business, which may aid operational execution.

4. Due Diligence Notes:

• Review the company’s business plan and cash flow forecasts to assess the path to profitability and funding requirements.
• Investigate the nature and terms of the £11,949 current liabilities, particularly taxation and other creditors, to understand payment obligations and timing.
• Clarify any related party transactions or loans among shareholders/directors given their significant shareholding and control.
• Monitor future filings for any signs of financial deterioration or improvements, including turnover and profit figures.
• Confirm the absence of director disqualifications or adverse conduct records for the named directors.