Company Number: 14225022

Analysis Date: 2025-07-20 11:13 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   FOODSAVERS CIC is a recently incorporated private company limited by guarantee, operating in social work and food redistribution activities. The company currently shows negative net assets (£-1,269) and net current liabilities of the same amount, reflecting a very small scale and limited financial resources. While the business model is socially driven and supported by donations, the lack of profitability and negative equity position pose a risk. However, as a community interest company with no reported overdue filings or adverse events, and with stakeholders reporting positive feedback, credit can be conditionally approved with limits and close monitoring. Lending should be modest and aligned with the company’s cash flow capacity and social objectives.

2. Financial Strength:
   The balance sheet reveals net current liabilities of £1,269 and negative net assets of £1,269 consistently over the last two years. The company’s total assets less current liabilities remain negative, indicating a weak equity base. The company does not hold fixed or significant current assets, and there is no indication of retained earnings or reserves. This financial position is typical for a start-up social enterprise operating on donations and minimal revenue (£25,283 turnover reported in the prior period) but limits the ability to absorb shocks or fund growth without additional capital or support.

3. Cash Flow Assessment:
   The reported net current liabilities indicate a working capital deficit, meaning current liabilities exceed current assets. The company relies heavily on donations and grants rather than commercial revenue. There are no employees currently on payroll, which reduces overheads, but also limits operational capacity. The absence of positive cash flow from operations and negative equity imply limited liquidity. The company’s survival depends on continued donor funding and possibly external funding sources. This situation necessitates cautious credit limits and may require short-term facilities rather than long-term lending.

4. Monitoring Points:

• Monitor incoming donations and turnover trends to assess cash flow improvements.
• Watch for changes in working capital and net asset position in future accounts.
• Track director changes and governance stability as the company evolves.
• Ensure timely filing of accounts and confirmation statements to avoid compliance issues.
• Evaluate the company’s ability to expand supply and meet demand without increasing liabilities.
• Monitor any introduction of paid staff or operational scale-up that might increase financial pressures.