NIGERIA COMMUNITY SUNDERLAND CIC

Executive Summary

Nigeria Community Sunderland CIC shows persistent financial strain, with negative net assets and liabilities exceeding assets, raising solvency and liquidity risks. Despite compliance and some cash improvement, declining turnover and operating losses pose operational sustainability concerns. Further due diligence on liabilities and business model viability is essential before investment consideration.

NIGERIA COMMUNITY SUNDERLAND CIC - Analysis Report

Company Number: 13799230

Analysis Date: 2025-07-29 18:29 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns with persistent negative net assets and net current liabilities, indicating it may struggle to meet its short-term obligations.

2. Key Concerns:

• Negative net assets and net current assets for four consecutive years, worsening from -£382 in 2023 to -£471 in 2024.
• Current liabilities (£1,230 in 2024) exceed current assets (£759), highlighting liquidity risk and potential cash flow difficulties.
• Declining turnover from £3,585 in 2023 to £1,060 in 2024, coupled with operating losses (-£89 in 2024), suggesting operational challenges and lack of growth momentum.

3. Positive Indicators:

• The company remains active and compliant with filings, with no overdue accounts or confirmation statements, indicating good regulatory adherence.
• Directors are engaged and the company maintains a clear governance structure with three current directors.
• Cash reserves increased from £148 in 2023 to £759 in 2024, which may provide some short-term relief for liquidity management.

4. Due Diligence Notes:

• Investigate the nature and terms of the £1,230 current liabilities to assess repayment risk and creditor pressure.
• Clarify the sources of revenue and whether the reported turnover is sustainable or reliant on one-off events.
• Review any contingent liabilities or guarantees given the company's negative equity position.
• Explore the strategic plans or fundraising efforts by directors to address continued losses and capital deficiency.
• Confirm no undisclosed related party transactions or director loans that could impact financial stability.