TEWDRIC ENERGY LTD

Executive Summary

Tewdric Energy Ltd demonstrates ongoing liquidity challenges with negative working capital but maintains positive shareholders’ funds supported by long-term financing. The company operates in a growing renewable energy sector and has stable management but requires cautious credit limits and close monitoring of cash flows. Conditional approval is recommended, contingent on periodic financial reviews.

TEWDRIC ENERGY LTD - Analysis Report

Company Number: 12658831

Analysis Date: 2025-07-29 20:02 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Tewdric Energy Ltd is a micro-entity operating in renewable energy installation with a focus on solar panels and EV chargers. While the company is active and filing accounts timely, its financial position shows persistent negative net current assets and total net liabilities, indicating liquidity pressures. The firm’s ability to meet short-term obligations is constrained by current liabilities exceeding current assets by a significant margin in recent years. However, the company maintains positive net assets supported by longer-term creditor arrangements, and shareholder funds are stable. Approval is recommended with conditions: credit limits should be conservative, and continuous monitoring of liquidity and working capital is essential.

2. Financial Strength:

• Fixed assets have decreased from £96,504 in 2023 to £81,703 in 2024, indicating some asset disposals or depreciation.
• Current assets have increased moderately to £323,975 in 2024 from £284,383 in 2023.
• Current liabilities remain high at £677,073 (2024), though reduced from £755,774 in 2023.
• Net current liabilities are substantial at -£349,900 in 2024, signaling working capital deficiency.
• Long-term liabilities increased to £239,536 in 2024 from £171,787 in 2023, indicating more reliance on longer-term debt.
• Shareholders’ funds remain positive at £531,420, but the balance sheet shows net liabilities after adjusting for all creditors and accruals, suggesting the company is leveraged.

3. Cash Flow Assessment:

• The company’s working capital position is negative, with current liabilities exceeding current assets by approximately £350k in 2024, which may limit liquidity.
• The reduction in current liabilities from 2023 suggests some improvement, but the deficit remains material.
• No direct cash flow figures are provided, but the persistent working capital deficit implies reliance on creditor financing or external funding to support operations.
• The decrease in fixed assets suggests possible asset sales to generate cash or write-downs.
• The company employs 5 staff, down from 6, which may indicate cost control efforts.

4. Monitoring Points:

• Monitor working capital closely, especially the trend in current liabilities and ability to convert current assets to cash.
• Track any changes in long-term debt levels and repayment schedules.
• Watch for any delays or irregularities in filing accounts or confirmation statements.
• Assess profitability and cash generation in future accounts once available to confirm improved liquidity.
• Review management actions regarding cost control and asset utilization.
• Keep an eye on director changes or PSC updates that may affect governance.