Company Number: 13815181

Analysis Date: 2025-07-29 14:34 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   The Clean Future Renewables Ltd is an active small private limited company operating in the utility construction sector (electricity and telecommunications). The company shows a history of net current liabilities and net negative shareholders’ funds (deficit of £9,430 as of April 2024). While the company is currently trading and supported by a group structure, its balance sheet weakness and reliance on intercompany loans (noted creditors owed to group undertakings increased to £177,619) pose a risk to standalone creditworthiness. Approval is conditional on continued group support and monitoring of improvements in liquidity and equity position.

2. Financial Strength:
   The company’s balance sheet reveals consistent net liabilities over the last two years, deteriorating from a deficit of £3,068 in 2023 to £9,430 in 2024. Total current assets increased mainly due to stock (£155,320 in 2024 vs £70,350 in 2023), but current liabilities more than doubled to £196,723, driven primarily by amounts owed to group undertakings (£177,619 in 2024 vs £84,500 in 2023). There are no fixed assets disclosed, and equity remains minimal with only £1 issued share capital. The financial position indicates a weak capital structure and dependence on group funding to meet liabilities.

3. Cash Flow Assessment:
   Cash at bank is modest at £27,071, a positive increase from no cash reported in the previous year, but still low relative to current liabilities. Debtors have decreased to £4,902 from £14,082, which may pressure short-term liquidity. Net current assets remain negative, indicating working capital deficiency. The company’s liquidity is fragile, relying on timely group funding and efficient stock management. The absence of profit and loss figures limits visibility on operational cash generation, but the presence of ongoing group loans suggests external cash injections underpin liquidity.

4. Monitoring Points:

• Equity and net asset recovery: Watch for reduction in net liabilities and positive equity build-up.
• Intercompany balances: Monitor the sustainability and terms of amounts owed to group undertakings—risk of withdrawal or non-renewal could impair liquidity.
• Stock and debtor levels: Manage inventory efficiently and improve debtor collection to enhance working capital.
• Cash flow and profitability: Obtain detailed cash flow analysis and profit/loss accounts to assess operational viability.
• Group support continuity: Confirm ongoing financial backing from parent and ultimate controlling entities.