DERBYSHIRE VOLUNTARY ACTION

Risk Rating: MEDIUM Justification: While the entity demonstrates excellent regulatory compliance and a long-standing operational history, the complete absence of quantitative financial data prevents an assessment of solvency and liquidity. Additionally, recent clustered resignations at the board level introduce a degree of operational and governance uncertainty that requires investigation.

Key Concerns: * Absence of Financial Data: The provided data lacks balance sheet and profit and loss figures, making it impossible to evaluate working capital, net assets, or overall financial stability. Without this, solvency and liquidity risks cannot be quantified. * Recent Board Turnover: There have been three director resignations within a relatively short window (November 2025 to May 2026). While director transitions are normal, clustered resignations can sometimes indicate strategic disagreements, governance concerns, or organizational stress. * Funding Vulnerability (Sector-Specific): Operating as a voluntary action organization (SIC 94990), this entity is likely heavily reliant on grants, local authority contracts, and donations. This funding model is inherently susceptible to macroeconomic shifts and public sector budget cuts, which can rapidly impact liquidity.

Positive Indicators: * Strong Regulatory Compliance: The company’s accounts are filed up to March 2025 and are not overdue, nor is the confirmation statement overdue. This indicates robust administrative governance and a lower risk of regulatory penalties or forced strike-offs. * Operational Longevity: Incorporated in 2009, the company has survived for over 15 years, suggesting a sustainable operational model and an ability to navigate previous economic cycles. * Stable Corporate Status: The company is actively registered, not in liquidation, administration, or receivership, and there are no immediate legal red flags visible in the filing history.

Due Diligence Notes: * Financial Performance: Request and review the full accounts made up to 31 March 2025. Focus specifically on net current assets (working capital), free reserves, and the proportion of restricted versus unrestricted funds, which is vital for assessing liquidity in non-profits. * Director Resignations: Conduct background inquiries to understand the context behind the recent resignations of Helen Claire Bagley, Dr. Sue Wheatcroft, and Wan Ten Yap. Ascertain whether these were planned rotational departures or symptomatic of broader boardroom issues. * Guarantor Liabilities: As a company limited by guarantee with no share capital, review the extent of guarantor liabilities (typically nominal, e.g., £1 upon winding up) and ensure there are no undisclosed contingent liabilities. * Funding Pipeline: Investigate the organization's primary funding sources and the expiration dates of key grants or contracts to assess near-term revenue stability.