CLEAN JURASSIC COAST CIC

Executive Summary

The company shows committed community engagement with stable net assets but faces moderate financial risk due to low liquidity, recent operating losses, and reliance on uncertain donation income. It remains compliant with regulatory filings but would benefit from enhanced funding stability and cash flow management to support ongoing activities and planned expansion.

CLEAN JURASSIC COAST CIC - Analysis Report

Company Number: 13126608

Analysis Date: 2025-07-20 13:30 UTC

1. Risk Rating: MEDIUM
   The company operates as a community interest company with limited financial scale and relies heavily on donations. While it maintains positive net assets and complies with filing obligations, its low turnover, negative operating result in the latest year, and minimal cash reserves indicate moderate risk in liquidity and operational sustainability.

2. Key Concerns:

• Liquidity Constraints: Cash at bank is very low (£25 at 2024 year-end), which could impair the company’s ability to meet short-term obligations or absorb unexpected expenses.
• Operating Losses: The latest financial year shows a loss of £1,363, reversing prior profitability, signaling potential challenges in maintaining income streams or managing costs effectively.
• Dependency on Donations: The company’s funding primarily comes from donations (circa £4,000 in the last year), which are inherently uncertain and may impact financial stability and growth plans.

3. Positive Indicators:

• Positive Net Assets: Net assets remain stable and positive at approximately £10,000, reflecting ownership of tangible fixed assets and no apparent outstanding liabilities.
• Regulatory Compliance: The company is up to date with both accounts and confirmation statement filings, indicating good governance and adherence to statutory requirements.
• Clear Community Impact: The company demonstrates tangible community engagement and environmental benefit, which may support continued stakeholder support and funding opportunities.

4. Due Diligence Notes:

• Investigate the company’s cash flow management and whether additional funding sources or reserves are planned to cover operating losses.
• Review the nature and sustainability of donations and grants, including any secured multi-year funding agreements.
• Assess the condition and liquidity of tangible fixed assets, as these represent the majority of the company’s asset base and may have limited conversion to cash.
• Confirm the absence of any contingent liabilities or off-balance-sheet commitments not disclosed in the accounts.
• Evaluate the director’s capability and plans for addressing the educational side setbacks mentioned, as this impacts future operational stability and growth.