OTHER OILS FUELLING CHANGE CIC

Executive Summary

OTHER OILS FUELLING CHANGE CIC is an early-stage social enterprise with no revenue and negative net assets, reflecting start-up losses and minimal liquidity. The company’s financial position and cash flow are currently insufficient to support credit extension, making lending high risk at this stage. Future creditworthiness will depend on successful grant funding, revenue generation, and improved working capital management.

OTHER OILS FUELLING CHANGE CIC - Analysis Report

Company Number: 12941476

Analysis Date: 2025-07-20 14:00 UTC

1. Credit Opinion: DECLINE
   OTHER OILS FUELLING CHANGE CIC is an early-stage community interest company with minimal trading history and no reported turnover in its first 13-month accounting period ending October 2021. The financials show a net current liability position of £798 with total net assets negative by the same amount, reflecting cumulative losses and no retained earnings. The company has no employees and very limited current assets (£8 cash), indicating extremely constrained liquidity. Without revenue or operating cash flow, the company’s ability to service any debt or credit facility is unproven and highly uncertain. The business is still at research and development phase, dependent on grant funding and future commercial success which is speculative. Directors have not drawn remuneration, consistent with early-stage development but also limiting internal financial strength. Given the lack of financial track record, negative net assets, and no demonstrated cash flow generation, extending credit at this stage presents a high risk of non-repayment.

2. Financial Strength:
   The balance sheet is very weak, showing net liabilities of £798 as of October 2021. Current liabilities of £806 exceed current assets of only £8, resulting in negative working capital of £798. The company has no fixed assets and no tangible equity or reserves. Shareholders’ funds are negative, reflecting accumulated losses since incorporation in October 2020. The financial position is typical of a pre-revenue start-up or early-stage social enterprise, with limited capital and no operating income to build strength. The absence of tangible assets or cash reserves means there is no cushion to absorb financial stress or delays in funding.

3. Cash Flow Assessment:
   Cash at bank is only £8, indicating minimal liquidity. With no turnover and ongoing administrative expenses (£798 loss in first period), the company is reliant on external funding sources such as grants or shareholder contributions to continue operations. There is no evidence of positive operating cash flow or working capital generation. The negative net current assets highlight a fragile short-term liquidity position. Without secured funding or anticipated revenue, the company cannot currently meet creditor demands or service debt. Cash flow risk is very high.

4. Monitoring Points:

• Future turnover and revenue generation progress, particularly any successful commercialization of HVO distribution.
• Grant funding receipt and timing, especially confirmation of the National Lottery grant mentioned as forthcoming.
• Changes in net current assets and working capital position in subsequent accounts.
• Any accumulation of fixed assets or capital investment indicating business development.
• Director remuneration and related party transactions for indications of financial sustainability or strain.
• Timely filing of accounts and confirmation statements to ensure ongoing compliance and transparency.
• Industry developments in renewable fuel demand that could impact business prospects.