EBATT PROJECTS CIC

Executive Summary

EBATT PROJECTS CIC is a very young community interest company with a fragile financial position, showing negative working capital and modest cash reserves. Its ability to meet short-term obligations is limited but manageable given low overheads and grant funding support. Conditional credit approval is recommended with close cash flow monitoring to mitigate liquidity risk.

EBATT PROJECTS CIC - Analysis Report

Company Number: 14859973

Analysis Date: 2025-07-29 20:34 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   EBATT PROJECTS CIC is a newly incorporated community interest company (CIC) focused on sports activities (table tennis). The company has a limited trading history (less than one year of accounts) and shows a small net liability position. While the business model is community-focused and grant-supported, the negative net current assets and net liabilities indicate tight financial headroom. The directors have received modest remuneration, demonstrating some financial discipline. The company’s ability to service debt is constrained given current liabilities exceed current assets. Conditional approval could be considered if loan amounts are modest and repayment terms align with cash flow generation from grants or community funding.

2. Financial Strength:
   The balance sheet as of 30 September 2024 shows current assets of £3,638 (all cash) against current liabilities of £4,255, resulting in net current liabilities of £617. This negative working capital position reflects a modest overdraft or short-term creditor exposure relative to cash holdings. There are no fixed assets or long-term liabilities reported. Shareholders’ funds are negative £617, consistent with accumulated losses in the start-up period. Overall, the balance sheet is fragile with limited financial reserves and no tangible asset backing.

3. Cash Flow Assessment:
   Cash of £3,638 is the sole current asset, indicating liquidity is limited but not absent. The company’s current liabilities include accruals and other creditors totaling £4,255, so working capital is negative. The company relies on grant funding and modest fees for its community sports programs, which suggests cash inflows may be irregular and dependent on external funding cycles. Directors’ remuneration is low, and most work is voluntary, which helps conserve cash. Short-term liquidity risk remains, especially if grant funding is delayed or reduced.

4. Monitoring Points:

• Track monthly cash flow closely to ensure coverage of short-term liabilities.
• Monitor grant funding receipt timing and amounts as primary revenue source.
• Watch for increases in director remuneration or additional staff costs that could pressure cash.
• Review any increase in creditors or overdue payables as a sign of financial stress.
• Assess expansion plans and capital expenditure impact on liquidity.
• Ensure timely filing of statutory returns and accounts to maintain regulatory compliance.