SAVING GRACE FOR PURPOSE CIC

Executive Summary

SAVING GRACE FOR PURPOSE CIC is in the initial phase of its financial life, with minimal assets and no reserves but no signs of distress. The company demonstrates strong community engagement and compliance with statutory requirements, indicative of a well-intentioned start-up social enterprise. With strategic funding and cash flow management, the company can establish a healthier financial footing to support its valuable mission.

SAVING GRACE FOR PURPOSE CIC - Analysis Report

Company Number: 15126687

Analysis Date: 2025-07-20 11:43 UTC

Financial Health Assessment for SAVING GRACE FOR PURPOSE CIC
Assessment Date: Financial year ended 30 September 2024

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1. Financial Health Score: D

Explanation:
Given the company's very early stage of operations (incorporated less than one year ago) and the minimal financial activity reported, the financial health score is graded as D. This reflects a "newborn" stage rather than distress but highlights the current lack of financial resources or reserves. The absence of net assets and zero working capital indicate no financial cushion, which is typical for a start-up but requires close monitoring.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£44	Extremely low; primarily cash
Cash and Cash Equivalents	£44	Minimal liquidity—barely sufficient for immediate needs
Current Liabilities	£44	Equal to current assets; no positive working capital
Net Current Assets (Working Capital)	£0	No buffer to cover short-term obligations
Net Assets (Shareholders’ Funds)	£0	No equity base; company just starting operations
Number of Employees	0	No payroll expenses or operational staff
Director Remuneration	£0	No outflows to directors
Filing Status	Up to date	Compliant with statutory filing deadlines

Industry Context:
The company operates as a Community Interest Company (CIC) focused on support services related to child abduction trauma and legal navigation, a non-profit social enterprise model. Such entities often start with minimal financial transactions and rely heavily on grants, donations, and volunteer work.

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3. Diagnosis

The financial "vital signs" reveal a company in the very early "neonatal" phase of its lifecycle. The balance sheet is essentially flat, with current assets just matching current liabilities, resulting in zero working capital. This means the company has no immediate financial buffer to absorb unexpected costs or invest in growth without additional funding.

The lack of employees and director remuneration suggests a volunteer-driven or founder-led entity without operational payroll expenses so far, consistent with many start-up CICs. The Community Interest Report narrates meaningful community engagement, but this is not yet reflected in financial strength.

The "symptoms" of this financial picture are typical of a start-up CIC with minimal trading history — it is not a sign of distress but indicates dependency on incoming funding or donations to build financial resilience. The company is not currently generating revenues or accumulating reserves.

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4. Prognosis

If SAVING GRACE FOR PURPOSE CIC secures steady funding and grows its activities as outlined, its financial health should improve as cash inflows rise and the company builds reserves. However, with zero net assets and working capital, it remains vulnerable to cash flow interruptions or unexpected costs.

Sustained community impact and stakeholder engagement are promising signs that external support may continue. Ensuring transparent financial management and timely filing compliance lays a foundation for future financial stability.

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5. Recommendations

• Build Financial Reserves: Actively seek grants, donations, or social investment funding to increase cash holdings and create a financial cushion.
• Cash Flow Monitoring: Maintain strict oversight on cash inflows and outflows to avoid liquidity crunches given the zero working capital.
• Operational Planning: Develop a budget forecasting short- and medium-term cash requirements aligned with planned service expansion.
• Stakeholder Engagement: Continue leveraging community and partner networks to secure funding and in-kind support.
• Financial Reporting: Though exempt from audit, consider voluntary internal reviews to ensure financial controls and transparency.
• Governance: Directors should keep abreast of financial risks and ensure compliance with CIC regulations and Companies House filings.

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