DEALMEOUT CIC

Executive Summary

Dealmeout CIC has demonstrated a financial turnaround with a return to profitability and improved net assets, supported by increased cash reserves. However, the significant drop in turnover and thin financial buffers require cautious credit approval with ongoing monitoring of revenue recovery and liquidity. The company’s niche social mission and CIC status limit asset strength but show positive operational progress under current management.

DEALMEOUT CIC - Analysis Report

Company Number: 13018385

Analysis Date: 2025-07-20 14:38 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Dealmeout CIC is a private company limited by guarantee operating in the niche sector of gambling addiction support and education. While the company has returned to profitability in the most recent financial year with an operating profit of £14,786, this follows a significant loss in the prior comparable period. Turnover has declined sharply from £272,339 in 2023 to £76,934 in 2024, indicating a contraction in revenue streams which merits caution. The company holds modest net assets of £3,104 and positive net current assets, but the thin equity base and volatility in turnover suggest limited financial buffer. Credit approval should be conditional on continued revenue recovery and close monitoring of cash flow.

2. Financial Strength
   The balance sheet shows a small tangible fixed asset base of £271, reduced from £3,275 the previous year due to depreciation charges. Current assets consist entirely of cash (£22,825), which covers current liabilities of £19,992, resulting in positive net current assets of £2,833. Net assets improved from negative £10,996 to positive £3,104, reflecting improved profitability and cash generation. Shareholders’ funds are low but positive, which is expected for a CIC structure with no share capital. The company demonstrates a turnaround but remains financially fragile with limited asset backing.

3. Cash Flow Assessment
   Cash balances have increased significantly year-on-year from £5,315 to £22,825, supporting liquidity and ability to meet short-term obligations. Current liabilities remain stable around £20k. The company has minimal working capital risk currently, with positive net current assets. However, the dramatic fall in turnover raises questions about sustainability of cash inflows, and the business depends heavily on maintaining or growing income to sustain cash generation. Management should ensure careful working capital management and avoid any increase in short-term debt.

4. Monitoring Points

• Revenue trends: Monitor monthly sales and contract renewals to confirm recovery and growth beyond recent low turnover.
• Cash reserves and liquidity ratios: Ensure cash remains sufficient to cover liabilities and operational needs.
• Profitability trajectory: Track operating margins and control of administrative expenses to maintain positive earnings.
• Director stability and governance: Note that current CEO Mr Jordan Lea remains the key controlling figure and director; changes in governance could impact credit risk.
• Impact of sector changes: As a CIC focused on gambling addiction education, legislative or funding environment changes could affect financial stability.