RUMBLES CATERING PROJECT LIMITED

Risk Rating: MEDIUM Justification: While the charity demonstrates strong financial recovery with improved reserves and a return to surplus, significant governance instability—marked by multiple recent director resignations and explicit acknowledgment of unsettling management changes—elevates operational risk. The high concentration of debtors also introduces moderate liquidity uncertainty.

Key Concerns: * Governance and Management Instability: There has been a high turnover of trustees/directors recently, with four resignations occurring between October 2025 and April 2026 (including the signatory to the accounts, Karen Rose). The directors' report explicitly acknowledges that changes within senior management and trustees have been "unsettling for the charity." Such volatility can disrupt strategic continuity and operational effectiveness. * Debtor Concentration: Debtors amount to £133,459, representing approximately 65% of the annual income (£204,441) and a significant portion of current assets. If these are delayed grant claims or accrued income that fails to materialize, it could rapidly erode the charity's working capital and liquidity position. * Future Funding Uncertainty: Although the charity achieved a surplus in 2025, the directors' report notes ongoing "funding challenges." Reliance on grants and charitable activities can be inherently volatile, and the recent management changes may impact the sustainability of newly established funding relationships.

Positive Indicators: * Strong Financial Recovery: The charity reversed a £26,992 deficit in 2024 to generate a £54,777 surplus in 2025, demonstrating improved operational efficiency or successful fundraising in the period. * Healthy Reserves: Total net assets have nearly doubled to £115,698 (up from £60,921). Reserves now cover approximately 9 months of expenditure (£149,664/12), exceeding their stated policy of maintaining 3 to 6 months of expenditure. * Regulatory Compliance: Accounts and confirmation statements are filed on time and are not overdue. The independent examiner raised no concerns regarding accounting records or compliance with accounting requirements.

Due Diligence Notes: * Composition of Debtors: Investigate the nature of the £133,459 debtor balance. Determine how much relates to accrued grant income versus trade debtors, and confirm the likelihood and timeframe of collection. * PSC Register Accuracy: Cross-reference the Persons with Significant Control (PSC) register with recent board resignations. Several individuals listed as having "significant influence or control" (e.g., Harvey, Rose, Sutton) have resigned as directors; the PSC register should be updated to reflect whether they retain control through other means or if their PSC status should be removed. * Post-Year-End Operational Stability: Assess the impact of the new Centre Manager (Andy Allen) and the restructured board on day-to-day operations. Confirm that the operational disruption acknowledged in the 2025 accounts has been stabilized in the current period.