Company Number: 13560119

Analysis Date: 2025-07-20 11:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Mindset Matters NW CIC is an active community interest company with no share capital and limited by guarantee, indicating a non-profit orientation focused on social impact rather than profit generation. The company shows improving liquidity and working capital, but net assets are nil due to a creditor balance falling due after one year equal to net current assets. The absence of profit and loss data and reliance on grants or awards suggest cash flow may be dependent on external funding. Credit approval is possible with conditions requiring monitoring of ongoing liquidity, confirmation of stable grant funding, and review of contractual obligations to ensure timely payments.

2. Financial Strength
   The balance sheet as of 31 August 2024 shows current assets of £47,868 (all cash) against current liabilities of £38,765, resulting in positive net current assets of £9,103. However, the company also has longer-term creditors of £9,103, which offsets net assets to zero. This indicates the company is currently solvent but has limited equity buffer. The prior year showed net liabilities, so there is an improving trend in financial position. The company employs two staff on average, consistent with its small scale. Overall, the financial strength is modest with a reliance on managing creditor balances prudently.

3. Cash Flow Assessment
   Cash holdings have increased substantially from £54 in 2023 to £47,868 in 2024, indicating improved liquidity. This suggests successful receipt of funds, likely through grants or community funding, as there is no indication of revenue from trading activities. Current liabilities have increased but remain covered by cash on hand. The company’s ability to cover short-term liabilities is healthy at present, yet the existence of a significant creditor due after one year requires ongoing cash flow management. There is no indication of profit generation for debt servicing; thus, reliance on external funding sources continues.

4. Monitoring Points

• Track grant renewals and funding sources to ensure continuous cash inflow.
• Monitor creditor balances, especially the £9,103 due after one year, to avoid liquidity strain.
• Review any new contractual obligations or expansion plans, such as the asset transfer with Liverpool City Council, for potential financial impact.
• Observe the company’s ability to maintain or grow cash reserves given its non-profit status and dependence on external funding.
• Watch for any director changes or governance issues that could affect financial stewardship.