LIGHTHOUSE CHURCH DONAGHADEE LTD

Executive Summary

Lighthouse Church Donaghadee LTD demonstrates a strong financial position with healthy liquidity, positive net assets, and consistent surplus generation. The charity’s financial health is robust, reflecting effective management and sound governance. Continued prudent cash management, income diversification, and cost control are recommended to sustain and build upon this solid foundation.

LIGHTHOUSE CHURCH DONAGHADEE LTD - Analysis Report

Company Number: NI693981

Analysis Date: 2025-07-29 17:25 UTC

Financial Health Assessment Report for LIGHTHOUSE CHURCH DONAGHADEE LTD

---

1. Financial Health Score: A-

Explanation:
The company exhibits a strong financial position with healthy liquidity, positive net assets, and consistent growth in reserves. As a charitable organisation limited by guarantee, it maintains a solid cash buffer and minimal liabilities, indicating excellent short-term financial health and prudent management of resources. The slight deduction from a perfect score reflects its early stage (incorporated 2023) and limited operational history, which naturally brings some uncertainty in long-term sustainability.

---

2. Key Vital Signs

Metric	Value (2025)	Interpretation
Cash Reserves	£30,602	Healthy cash balance for operational needs; strong liquidity.
Current Liabilities	£1,299	Very low short-term obligations; manageable and low risk.
Net Current Assets	£29,303	Excellent working capital, indicating ability to cover debts.
Net Assets (Total Funds)	£31,592	Positive equity base, showing accumulated funds and stability.
Income (Donations & Legacies)	£31,007	Stable income stream essential for continued operations.
Expenditure (Total)	£18,066	Moderate spending with controlled fundraising costs.
Net Income (Surplus)	£13,215	Indicates surplus generation and effective cost control.
Fixed Assets (Net Book Value)	£2,289	Tangible assets consistent with operational scale.

---

3. Diagnosis: Financial Condition Overview

The Lighthouse Church Donaghadee LTD presents a robust and healthy financial profile. Like a patient with a strong pulse and no signs of distress, the charity shows solid liquidity (ample cash reserves relative to liabilities), a healthy balance sheet with positive net assets, and consistent surplus generation over its financial year. The surplus of £13,215 in the latest year reflects sound stewardship of funds and effective fundraising efforts, providing a financial cushion for future activities.

The low level of current liabilities compared to current assets suggests the organisation faces no immediate liquidity risk—a “healthy cash flow” situation where incoming donations and investment income comfortably cover operational expenses. Fixed assets are modest, reflecting the organisation’s likely focus on service provision rather than capital-intensive activities, which is typical for religious charities.

No adverse symptoms such as high debt, recurring losses, or overdue filings are present. The charity also complies with regulatory requirements, including timely filing of accounts and confirmation statements, which supports good governance and financial discipline.

---

4. Recommendations: Steps to Maintain and Enhance Financial Wellness

• Maintain Cash Reserves: Continue prudent cash management to preserve liquidity, ensuring the charity can respond to unexpected expenses or funding fluctuations.

• Diversify Income Streams: Explore additional fundraising activities or grant opportunities to reduce dependency on donations and legacies alone, which can vary year to year.

• Monitor Expenditure: Keep a close watch on fundraising and administrative costs to sustain the current positive net income, balancing growth with cost control.

• Asset Management: Review the condition and utilisation of tangible fixed assets periodically to ensure they continue to support operational needs efficiently.

• Long-Term Planning: Develop a financial strategy incorporating reserves policy and forecasting to support sustainable growth and mission delivery over the coming years.

• Transparency and Reporting: Maintain clear, timely financial reporting to trustees and stakeholders to foster confidence and accountability.

---