Company Number: 13887808

Analysis Date: 2025-07-20 17:19 UTC

1. Risk Rating: LOW to MEDIUM
   The company is a recently incorporated Community Interest Company (CIC) limited by guarantee, with modest turnover and net assets. It has filed timely accounts and confirmation statements without overdue filings. The financials show a small operating loss in the latest period but positive net assets and net current assets. The scale and nature of operations suggest limited financial complexity and risk, although the loss and low working capital warrant monitoring.

2. Key Concerns:

• Slight operating loss in the latest financial year (£125), indicating tight margins and potential pressure on profitability.
• Low net current assets (£84), reflecting minimal working capital buffer which could constrain liquidity if obligations accelerate.
• Presence of creditors due after more than one year (£411) is small but introduces some medium-term obligations requiring cash flow planning.

3. Positive Indicators:

• Timely filing of accounts and confirmation statements, demonstrating good regulatory compliance and governance discipline.
• Steady turnover growth from £53k to £84k year on year, indicating growing business activity.
• Positive net assets (£642) and small positive net current assets, suggesting solvency is currently maintained.
• Clear community impact and stakeholder engagement consistent with CIC objectives, supporting operational sustainability from a mission-driven perspective.
• Modest size and simplicity reduce complexity and potential exposure to regulatory or operational risks.

4. Due Diligence Notes:

• Review cash flow statements and aged creditors/debtors to assess liquidity risk in more detail, as working capital is very tight.
• Investigate the nature and terms of the £411 long-term creditor balance to understand future funding commitments.
• Confirm operational sustainability plans given the marginal operating loss and whether further funding or income growth is anticipated.
• Assess the directors’ remuneration policy relative to turnover and funding sources to ensure it aligns with CIC community objectives.
• Verify no related party transactions or contingent liabilities not disclosed in the accounts.