Company Number: 14568966

Analysis Date: 2025-07-29 13:03 UTC

Financial Health Assessment for INCLUSIVITEE CIC (Year Ended 31 January 2024)

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1. Financial Health Score: B

Explanation:
INCLUSIVITEE CIC exhibits a solid financial footing for a newly established community interest company. The company has generated a positive operating profit and maintains a healthy cash position relative to its turnover. However, as a single-year report from a young entity with minimal assets and no employees, the assessment must be cautious. The absence of liabilities and positive net assets contribute to a favorable score but limited scale and scope suggest room for growth and risk management improvements.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Turnover	32,397	Modest revenue reflecting early-stage operations; typical for a start-up in social care sector
Cost of Sales	21,427	Costs are significant but controlled, leaving a gross profit margin of approx. 34%
Operating Profit	10,970	Positive profit indicates effective cost management and revenue generation
Cash and Current Assets	10,969	Strong liquidity position, showing "healthy cash flow" and good short-term financial stability
Net Current Assets	10,969	Working capital is positive, no immediate liquidity concerns
Net Assets / Shareholders Funds	10,969	Positive equity base; all funds appear to be retained earnings or reserves
Employees	0	No employees reported, which may limit operational capacity but reduces wage-related expenses
Grants Received	28,685	Significant grant funding supports operations and cash flow

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3. Diagnosis

The financial "vital signs" reveal a company in its infancy with a clear mission to support children and young adults with special educational needs and disabilities (SEND). The company operates without staff costs, relying heavily on grants and has demonstrated an ability to convert funding into positive operating profit. This is a promising "symptom" of financial health, especially considering the social enterprise context.

The absence of liabilities or overdrafts is a strong indicator that the company is not currently under financial distress. Cash reserves adequately cover current operational needs, akin to a patient with a robust immune system resisting immediate financial shocks.

However, the lack of employees and relatively low turnover suggest the business model is still very lean and may be vulnerable to changes in grant availability or demand fluctuations. This “fragility” is a symptom of early-stage ventures where sustainability depends on maintaining or growing funding sources and expanding service delivery capacity.

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4. Recommendations

To improve financial wellness and ensure sustainable growth, the following actions are advised:

• Diversify Funding Streams: Explore additional grants, donations, or social enterprise activities to reduce reliance on a single funding source and enhance financial resilience.
• Build Operational Capacity: Consider phased recruitment or volunteer engagement to expand service delivery while managing costs prudently.
• Implement Financial Forecasting: Develop rolling budgets and cash flow forecasts to anticipate funding cycles and operational expenses, enabling proactive management.
• Strengthen Stakeholder Engagement: Continue and enhance feedback mechanisms to demonstrate impact to funders and community, supporting future funding applications.
• Establish Reserves Policy: Aim to build a modest financial reserve to buffer against unforeseen expenses or funding gaps, improving long-term stability.
• Compliance and Reporting: Maintain timely filing and transparent reporting to sustain confidence among regulators, beneficiaries, and funders.

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