UK SOLERGY LTD

Executive Summary

UK SOLERGY LTD shows a pattern of negative net assets and working capital deficits over its first two years of trading, raising solvency and liquidity concerns. However, the company remains compliant with statutory filings and actively operating with a lean workforce. Further investigation into funding sources and operational viability is recommended before investment consideration.

UK SOLERGY LTD - Analysis Report

Company Number: 14026288

Analysis Date: 2025-07-29 21:06 UTC

1. Risk Rating: HIGH
   The company displays persistent negative net assets and negative working capital over three consecutive financial years, indicating ongoing solvency and liquidity challenges.

2. Key Concerns:

• Negative Net Assets: The company’s net assets deteriorated from -£2,528 in 2023 to -£3,285 in 2024, showing increasing accumulated losses and potential erosion of shareholder equity.
• Negative Net Current Assets: Current liabilities exceed current assets by £2,263 in 2024, suggesting potential difficulties in meeting short-term obligations.
• Reliance on Directors’ Support: Given the continued negative equity and small asset base, the company may depend on shareholder loans or director financing to maintain operations, which is not transparent from available data.

3. Positive Indicators:

• Compliance with Filing: All filings including accounts and confirmation statements are up to date, indicating regulatory compliance and governance diligence.
• Active Website and Operational Status: The company is active with an operational website, suggesting ongoing business activity in electrical installation services (SIC 43210).
• Small Employee Base: The company employs only 2 people, which may help control operating costs and reduce cash burn risk.

4. Due Diligence Notes:

• Investigate the company’s cash flow statements and sources of funding to understand how it meets its liabilities despite negative working capital.
• Review any director or shareholder loans or guarantees that support the company’s solvency.
• Assess the business model and contracts to determine if current losses are part of a planned investment phase or indicative of operational issues.
• Confirm there are no undisclosed contingent liabilities or off-balance-sheet obligations.
• Evaluate the background and financial strength of the persons with significant control, Mrs Ann-Marie Richmond and Mr Matthew James Richmond, for potential support capacity.