MOVE2CHANGE C.I.C.

Executive Summary

MOVE2CHANGE C.I.C. operates as a community interest company with a positive social mission but faces material financial challenges, including negative net assets and working capital deficits. While the company benefits from engaged directors and ongoing service delivery, its financial position indicates elevated solvency and liquidity risks that warrant close scrutiny of funding stability and cash flow management. Continued regulatory compliance and operational activity are strengths, but investor caution is advised until financial sustainability improves.

MOVE2CHANGE C.I.C. - Analysis Report

Company Number: 13111966

Analysis Date: 2025-07-20 12:03 UTC

1. Risk Rating: HIGH
   MOVE2CHANGE C.I.C. demonstrates significant solvency and liquidity risks, evidenced by persistent negative net assets and net current liabilities over the last two reported financial years. The company’s financial structure shows ongoing deficits, indicating an inability to meet liabilities with available assets without further funding or restructuring.

2. Key Concerns:

• Negative Net Assets and Working Capital: The company reported net assets of -£935 and net current liabilities of -£2,191 for the year ending January 2024, reflecting a deteriorating balance sheet position despite a modest improvement from the prior year.
• Reliance on Director Support and External Funding: The directors have provided financial and material support since inception, and the company actively seeks competitive funding streams, indicating potentially unstable or insufficient operational cash flow.
• Limited Financial Cushion and Potential Cash Flow Pressure: Although cash balances increased to £18,833, current liabilities (£21,131) still exceed current assets (£18,940), suggesting possible short-term liquidity strain and reliance on timely funding or credit terms to meet obligations.

3. Positive Indicators:

• Active and Experienced Board: Four directors remain engaged, with two actively working to develop the company’s operations, leveraging their external roles and networks to support the business.
• Operational Activity and Community Impact: The company delivered services to approximately 450 individuals during 2023 and holds accreditations (e.g., Mountain Training UK), indicating established service delivery capability and positive community engagement.
• No Overdue Filings and Compliance: Accounts and confirmation statements are up to date, with no overdue filings, reflecting good regulatory compliance and governance in statutory matters.

4. Due Diligence Notes:

• Examine Funding Sources and Sustainability: Investigate the nature, duration, and security of current and anticipated funding, including grants, donations, and contract revenues, to assess sustainability.
• Review Cash Flow Forecasts and Liquidity Management: Obtain detailed cash flow projections and creditor payment terms to evaluate short-term liquidity risk and operational viability.
• Assess Contingent Liabilities and Commitments: Clarify any off-balance sheet liabilities or contingent obligations that could exacerbate financial risk.
• Understand the Directors’ Financial Support: Determine the extent and conditions of financial/material support from directors and any plans for capitalization or restructuring.
• Verify Impact of COVID-19 and Market Conditions: Given references to “cost of living crisis” and funding competitiveness, assess how external economic factors are influencing revenue and cost structures.

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