Company Number: 14302135

Analysis Date: 2025-07-29 19:01 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile mainly due to minimal financial activity, very low turnover, negligible assets, and operating losses. The lack of revenue generation and reliance on charitable activities without direct income signals potential solvency and liquidity risks.

2. Key Concerns:

• Financial viability: Turnover of only £3,354 against cost of sales £3,430 resulting in a loss, with net assets of just £24, indicates the company is not generating sustainable income to meet obligations.
• Liquidity constraints: Cash balance is extremely low (£24), raising concerns about the company’s ability to cover immediate liabilities or operational costs.
• Operational sustainability: The business model is based on charitable projects providing free services, with no employees and no director remuneration, suggesting a dependency on external funding or volunteer effort, which may not be reliable long term.

3. Positive Indicators:

• Compliance: The company has filed accounts and confirmation statements on time, with no overdue filings or penalties, indicating good regulatory compliance.
• Clear mission and impact: The community interest report outlines a social purpose with positive stakeholder feedback, which may aid in grant or donation funding.
• Active status: The company is active and in good standing with no liquidation or insolvency proceedings underway.

4. Due Diligence Notes:

• Investigate the sources of funding or grants supporting the company’s operations and whether these are sufficient and sustainable.
• Review cash flow projections and plans to improve financial sustainability given the current low turnover and losses.
• Confirm if there are any outstanding debts or contingent liabilities not reflected in the accounts.
• Assess governance structure and whether there are plans to engage paid staff or diversify revenue streams.
• Verify the background and ongoing involvement of current directors, especially given recent director resignations.