BUDO FOR CHANGE CIC

Executive Summary

BUDO FOR CHANGE CIC is financially stable with positive liquidity and net assets, operating within a small scale with no immediate financial distress. While turnover has slightly declined, the organisation maintains a healthy cash position and prudent cost control. To enhance financial wellness, focus should be on increasing revenue, building reserves, and strengthening operational capacity for sustainable growth.

BUDO FOR CHANGE CIC - Analysis Report

Company Number: 13417948

Analysis Date: 2025-07-29 19:25 UTC

Financial Health Assessment for BUDO FOR CHANGE CIC (as of 31 May 2024)

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1. Financial Health Score: B

Explanation:
BUDO FOR CHANGE CIC demonstrates a stable and improving financial position with positive net assets and growing cash reserves, reflecting healthy liquidity. However, the very small scale of operations and modest turnover relative to assets suggest that the organisation is still in early growth or consolidation phases. There are no liabilities, which is a positive sign, but the low turnover and absence of employees indicate limited operational capacity. Thus, the financial health is good but with room to strengthen operational scale and sustainability.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Turnover	£21,550	Low turnover reflecting a micro-scale operation; slight decline from previous year (£25,282).
Operating Profit	£2,000	Positive operating profit indicating ability to cover costs and generate surplus.
Net Current Assets	£4,174	Positive working capital (current assets exceed current liabilities), indicating liquidity.
Cash at Bank	£4,174	Entirely held in cash, showing good immediate liquidity with no current liabilities.
Current Liabilities	£0	No short-term debts or payables; no pressure from immediate financial obligations.
Net Assets	£4,174	Positive net assets and shareholder funds; stable equity base for a small non-share capital CIC.

Additional Notes:

• No employees; services delivered through freelance contractors, reducing fixed cost burden but potentially limiting control and scalability.
• The modest turnover and cash position reflect a "healthy but fragile" financial state typical of community interest companies in early years.
• No audit required or performed, consistent with small entity exemptions.

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3. Diagnosis

BUDO FOR CHANGE CIC is exhibiting "stable vital signs" akin to a patient with good hydration and no symptoms of acute distress. The company has managed to generate a small but sustainable surplus, increasing its cash reserves year on year, which suggests prudent cash management and operational control. The absence of liabilities and positive net current assets indicate no immediate financial distress or liquidity problems.

However, the "symptom" of declining turnover (from £25,282 to £21,550) could indicate a need to explore reasons behind reduced income and assess growth opportunities. The lack of employees and reliance on freelance contractors may limit the organisation’s ability to scale quickly and maintain consistent service delivery.

The financial "diagnosis" is that BUDO FOR CHANGE CIC is financially healthy for its size and stage, with no signs of distress. It is functioning like a well-maintained but still "developing" patient who could benefit from targeted interventions to support growth and sustainability.

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4. Recommendations

To improve financial wellness and support sustainable growth, the following specific actions are recommended:

• Increase Turnover: Investigate opportunities for revenue growth, including expanding funded programmes, partnerships, or community grants to reverse the recent turnover decline.
• Strengthen Financial Reserves: Maintain and grow cash reserves to build a buffer against unforeseen expenses or funding volatility.
• Operational Capacity Building: Evaluate the potential benefits of hiring part-time employees or establishing longer-term contracts with key freelancers to enhance service consistency and organisational capacity.
• Financial Monitoring: Implement more detailed cash flow forecasting and budgeting to anticipate financial needs and manage expenditure proactively.
• Stakeholder Engagement: Enhance stakeholder consultation and reporting to build community support, attract funding, and increase transparency.
• Diversify Funding: Explore diversified funding streams beyond grants and donations to reduce risk and improve financial resilience.

These actions will help BUDO FOR CHANGE CIC transition from a "stable but small" entity to a more robust and scalable operation, akin to strengthening a patient's immune system to prevent future health issues.

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