PROJECT TWENTY-TWO C.I.C.

Executive Summary

PROJECT TWENTY-TWO C.I.C. is a very small arts facility operator with minimal financial resources and limited liquidity. While currently compliant and active, its low asset base and cash reserves limit credit capacity and resilience to financial stress. Credit approval is possible but should be conditional on tight credit terms and further monitoring of cash flow and business activity.

PROJECT TWENTY-TWO C.I.C. - Analysis Report

Company Number: 13478378

Analysis Date: 2025-07-29 15:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   PROJECT TWENTY-TWO C.I.C. is a very small private company limited by guarantee operating in the arts facilities sector. Its financial position shows minimal asset base (£19 cash) and negligible net assets, reflecting a low scale of operations and limited financial resources. The company is active and compliant with filing requirements, but its cash reserves are very modest, which may constrain its ability to absorb shocks or service any significant debt. Credit approval is possible but should be conditional on strict limits on credit exposure, short repayment terms, and possibly the provision of additional security or guarantees.

2. Financial Strength:
   The balance sheet reveals an extremely modest financial structure with total net assets of only £19 as of 30 September 2024. There are no fixed assets, and current assets consist solely of cash £19. The company has no recorded liabilities but also no material equity or retained earnings. The absence of significant assets or working capital limits financial flexibility. The company operates at a micro scale and appears to rely heavily on minimal cash flows. The low net asset base signals vulnerability to unexpected expenses or downturns.

3. Cash Flow Assessment:
   Cash holdings stand at £19 with net current assets equalling the same amount, indicating very limited liquidity buffer. No liabilities are recorded, so current obligations appear minimal. However, turnover is modest (£47,669 in 2023), and no profit and loss details were provided, suggesting limited profitability and cash generation. The company’s ability to generate positive operating cash flow or service debt is uncertain. Working capital is minimal, and the company likely relies heavily on cash inflows from its small client base or other funding sources.

4. Monitoring Points:

• Monitor cash flow closely to ensure liquidity does not deteriorate further.
• Watch for any increase in liabilities or commitments that could strain the balance sheet.
• Review turnover and profitability trends annually to assess business growth or contraction.
• Confirm director’s ongoing financial commitment and oversight given the single director and controlling shareholder structure.
• Evaluate any planned capital expenditures or expansions that could impact financial stability.