READING HK RUNNERS CIC

Executive Summary

Reading HK Runners CIC is a recently established community interest company with a modest financial footprint but a positive net asset position and clean compliance status. Its early profitability and net current asset surplus indicate initial financial stability, though limited turnover and long-term creditor obligations require ongoing monitoring. The company’s social purpose and community engagement are strong positives supporting its operational sustainability.

READING HK RUNNERS CIC - Analysis Report

Company Number: 14764875

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

1. Risk Rating: LOW
   The company is newly incorporated (March 2023) and operates as a private company limited by guarantee with no share capital. It holds a small asset base and limited turnover but reports positive net assets and current assets exceeding current liabilities, indicating an initial stable liquidity position. No overdue filings or regulatory issues are apparent.

2. Key Concerns:

• Limited Financial History and Scale: With less than one full financial year of operations, the company’s financial data is limited, restricting visibility on sustainable cash flows and profitability trends.
• Modest Turnover and Operating Model: The turnover (£4,464) and cash balances (£842) are low, reflecting a small-scale operation that may be vulnerable to funding or cash flow fluctuations.
• Long-Term Creditors: The presence of £900 in creditors due after more than one year requires scrutiny to understand repayment terms and any associated risks.

3. Positive Indicators:

• Positive Operating Profit: Despite the small scale, the company reports an operating profit of £1,332, reflecting prudent cost management.
• Net Current Assets and Overall Net Assets Positive: The net current assets of £2,232 and net assets of £1,332 suggest short-term liquidity and solvency are currently sound.
• Clean Compliance Record: No overdue accounts or confirmation statements; directors appear in good standing with no reported disqualifications.
• Community Impact: The Community Interest Company (CIC) status and activities demonstrate active engagement with local stakeholders and a clearly defined social purpose, which may support access to grants or funding.

4. Due Diligence Notes:

• Investigate the nature and repayment schedule of the £900 long-term creditors to assess potential liquidity strain in the future.
• Review cash flow projections and sources of funding to confirm sustainability beyond initial capital and small operational income.
• Confirm the absence of director remuneration aligns with the company’s community purpose and operational plans.
• Verify any contingent liabilities or commitments not disclosed given the company’s early stage.
• Assess plans for growth or diversification in revenue streams to reduce risk associated with low turnover.