CORRIDOR PROJECTS LIMITED

Executive Summary

Corridor Projects Limited operates with a fragile but stable financial condition typical of a small, non-profit entity limited by guarantee. The lack of net working capital and zero shareholders’ funds indicate no financial cushion, placing the company at moderate risk if cash flow pressures arise. To ensure long-term sustainability, building cash reserves and diversifying funding sources are key priorities.

CORRIDOR PROJECTS LIMITED - Analysis Report

Company Number: 12791990

Analysis Date: 2025-07-20 16:15 UTC

Financial Health Assessment: CORRIDOR PROJECTS LIMITED

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1. Financial Health Score: Grade C

Explanation:
The company shows a breakeven financial position with zero net current assets and zero shareholders' funds consistently over the last five years. While there are no signs of insolvency or immediate distress, the lack of net working capital and equity suggests a fragile financial status. This places the company in a moderate health category (Grade C) — not critically ill, but not robustly healthy either.

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2. Key Vital Signs

Metric	Latest Value (£)	Interpretation
Current Assets	19,448	Cash and short-term assets have decreased significantly from prior year (£48,435) indicating reduced liquidity.
Current Liabilities	19,448	Equal to current assets, leads to zero net working capital (no buffer to cover short-term obligations).
Net Current Assets	0	Indicates no excess short-term assets to pay liabilities; a neutral but concerning indicator.
Total Assets Less Current Liabilities	0	No net assets after liabilities; implies no equity cushion.
Shareholders' Funds	0	No retained earnings or equity; company operates on a break-even or non-profit basis.
Average Number of Employees	0	No employees, indicating the company operates likely as a non-trading or administrative entity.

Additional Observations:

• The company is private, limited by guarantee without share capital—common for non-profits or community interest companies.
• No audit required due to micro-entity status and no employees, indicating limited operational scale.
• Directors maintain control with voting rights but no significant financial buffer exists.

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3. Diagnosis: What the Numbers Reveal

The financial "vital signs" suggest Corridor Projects Limited is financially stable but not thriving. The zero net current assets and zero shareholders' funds indicate the company is running on a tightrope, with no financial reserves to absorb shocks or invest in growth. The drop in current assets from £48,435 in 2023 to £19,448 in 2024 signals reduced liquidity, which can be a symptom of either reduced funding or increased outflows.

The company’s nature as a private limited by guarantee entity focused on cultural education, with no employees, aligns with a non-profit or grant-funded organization. Such companies often aim to break even rather than generate profits, which explains zero retained earnings and minimal working capital.

While the absence of overdue filings and no signs of liquidation or insolvency are positive, the lack of financial buffer is a symptom of vulnerability. Should unforeseen expenses or funding delays occur, the company’s ability to meet obligations may be compromised.

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4. Recommendations: Steps to Improve Financial Wellness

• Build Cash Reserves: Aim to increase current assets to create a positive net working capital buffer. This could be through grant applications, fundraising, or careful expense management to maintain a "healthy cash flow" that cushions operational needs.

• Financial Planning and Budgeting: Implement robust budgeting to forecast cash flow needs and avoid liquidity crunches. Regular financial “check-ups” can detect early symptoms of financial stress.

• Diversify Funding Sources: Reduce dependency on a single source of income. Explore partnerships, sponsorships, or community fundraising to strengthen financial sustainability.

• Governance and Transparency: Maintain clear reporting and compliance to assure funders and stakeholders of sound financial health.

• Operational Efficiency: Review operating costs to ensure lean management. Since there are no employees, consider if outsourcing or volunteer support can optimize cost structure further.

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