SMARTVOLT SOLUTIONS LIMITED

Risk Rating: HIGH

Justification: The company exhibits a high-risk profile primarily due to persistent operating losses, heavy reliance on intercompany balances for liquidity, and recent governance instability. Although a recent capital injection has technically restored solvency, the underlying operational performance remains loss-making, and the company's liquidity is entirely dependent on the financial health of its wider group structure.

Key Concerns

1. Operating Losses and Capital Dependency: The company reported losses of £34,933 in FY2025 and £65,535 in FY2024. Net assets are currently positive (£289,325) solely due to a £177,633 transfer to an "Other reserves" (capital contribution) account. Without this related-party capital injection, the company would likely be insolvent, indicating a lack of standalone operational viability.
2. Intercompany Liquidity Risk: Of the £290,319 currently owed to the company, £241,494 (approx. 83%) is due from group undertakings. If the parent group experiences financial distress or restricts these repayments, the company's working capital and cash position would be severely compromised.
3. Governance and Operational Instability: The sole director, Mr. Daniel Stephen Burton, resigned in September 2026. Furthermore, the company has changed its name twice recently (from Cleaner Air Solutions UK Ltd in 2021, and from Wondrwall Energise Ltd in 2026), and the registered website resolves to a generic hosting placeholder page, raising questions about the continuity and current state of trading operations.

Positive Indicators

1. Restoration of Solvency: Following a prolonged period of negative net assets (from at least 2017 through 2022, reaching a deficit of £225,721 in 2022), the recent capital contribution has successfully returned the company to a positive net asset position (£289,325).
2. Improved Cash Position: Cash at bank and in hand has grown significantly from £292 in FY2022 and £2,888 in FY2024 to £36,669 in FY2025, providing a better buffer for immediate operational needs.
3. Regulatory Compliance: The company is up to date with its filing obligations at Companies House. Accounts for FY2025 were filed on time, and the confirmation statement is current, mitigating administrative and compliance risks.

Due Diligence Notes

1. Parent and Group Solvency: Investigate the financial stability of Wondrwall Group Limited (the immediate parent) and Wondrwall Holdco Limited (the ultimate parent). The subject company's balance sheet is inextricably linked to the group; an impairment of the intercompany debtor would instantly erase its net current assets.
2. PSC Discrepancies: Clarify the overlapping People with Significant Control (PSC) declarations. Both Smart Volt Solutions Limited and Wondrwall Group Limited are listed as owning more than 75% of shares and voting rights, which is mathematically impossible unless there is a direct ownership chain between the entities. This needs to be rectified at Companies House to understand the true control structure.
3. Nature of Capital Contribution: Obtain details on the £177,633 capital contribution reserve. Determine whether this represents a capitalization of existing intercompany debt (which would explain the reduction in group creditors) or a new cash injection, and ascertain if there are any conditions or repayment expectations attached.
4. Security and Factoring: Review the terms of the fixed and floating charge held by Regency Factors Limited. The accounts reference invoice discount financing of £11,686, which means the company is leveraging its receivables. Understanding the limits and covenants of this facility is crucial for assessing true liquidity.
5. Current Directorship: Verify who is currently running the company following the resignation of Mr. Burton in September 2026, as the filed accounts do not reflect a replacement, leaving a potential governance vacuum.