ASPIRING GROUND CIC

Executive Summary

Aspiring Ground CIC is a micro-sized social enterprise with very limited financial resources and a sole director who currently provides ongoing support. The company maintains positive working capital but with minimal financial buffers and declining cash reserves. Credit facilities may be granted on a conditional basis, subject to evidence of continued financial backing and careful monitoring of liquidity and operational sustainability.

ASPIRING GROUND CIC - Analysis Report

Company Number: 13245357

Analysis Date: 2025-07-29 20:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Aspiring Ground CIC operates as a community interest company with a social mission focused on employability and community support activities. The company shows modest net assets and working capital but limited scale and no employees. The director is the sole controlling party and currently unemployed, which raises some concerns about ongoing financial backing. The absence of remuneration to the director and reliance on external support for going concern suggest potential vulnerability. Credit approval could be considered with conditions requiring evidence of ongoing financial support or funding sources to ensure the company can meet its obligations.

2. Financial Strength:
   The balance sheet reveals very low net assets (£1,728 as of 31 March 2024) and minimal equity, reflecting a micro-sized entity with limited financial buffers. Current assets (£12,034) slightly exceed current liabilities (£10,306), indicating positive but tight net current assets (£1,728). There are no fixed assets or long-term investments reported. The company’s financial position has declined slightly from the prior year, with net current assets reducing by about £479, signaling a small deterioration in liquidity and financial strength.

3. Cash Flow Assessment:
   Cash holdings decreased from £9,535 to £7,535 in the last year, showing a reduction in liquid resources. Debtors remained flat at £4,499, while current liabilities decreased from £11,827 to £10,306, which helped maintain positive working capital. There is no indication of significant cash inflows from trading activities or external financing. The company has no employees, which reduces immediate payroll cash flow pressures but also suggests limited operational scale. Overall, liquidity is fragile but currently sufficient to cover short-term liabilities.

4. Monitoring Points:

• Track cash balances and working capital trends closely to ensure the company maintains sufficient liquidity to meet liabilities.
• Monitor any changes in director support or external funding sources that underpin the going concern assumption.
• Watch for any increase in current liabilities or delays in debtor collections that could strain cash flow.
• Review updates on company activities and revenue generation to gauge future sustainability.
• Confirm timely filing of accounts and confirmation statements to avoid regulatory risks.