Risk Analysis: REAL AID (04244870)

1. Risk Rating: MEDIUM

Justification: While the company demonstrates longevity (23+ years operational) and current regulatory compliance, the incomplete Persons with Significant Control (PSC) register and absence of financial data prevent a full solvency assessment. The company's structure as a guarantee-limited entity without share capital, operating in the social work sector, introduces funding model dependencies that warrant scrutiny.

2. Key Concerns

i) PSC Register Incompleteness

The PSC section contains only a generic "persons with significant control statement" rather than identifying specific individuals. Companies limited by guarantee must still maintain a compliant PSC register. This gap raises governance transparency concerns and potential Companies House compliance issues.

ii) Financial Data Absence

No financial figures are available—neither current assets, liabilities, nor net assets. Without visibility into balance sheet strength, working capital position, or P&L reserves, solvency and liquidity assessments cannot be substantiated. This is particularly concerning given the sector's typical reliance on grant funding and donations.

iii) Sector-Specific Funding Vulnerability

Operating under SIC code 88990 (social work activities without accommodation), the company is exposed to fluctuations in public sector contracts, grant availability, and charitable giving cycles. Organizations in this space frequently face cash flow timing mismatches between funding tranches and operational expenditure.

3. Positive Indicators

• Corporate Longevity: Incorporated in July 2001, the company has survived over two decades, suggesting operational resilience and sustained demand for services.

• Filing Compliance: Accounts and confirmation statements are current with no overdue filings, indicating administrative competence and regulatory adherence.

• Board Composition: Four serving directors (including what appears to be family representation with the Raine surname) provides governance breadth beyond a single-operator model.

• Active Status: The company is not in liquidation, administration, or receivership, and shows no disqualification records against current officers.

• Guarantee Structure: Limited by guarantee with no share capital aligns with the social enterprise/charitable purpose, reducing profit extraction risk and suggesting mission-driven operations.

4. Due Diligence Notes