SCRUFFS COMMUNITY NURSERY CASTLE DOUGLAS COMMUNITY INTEREST COMPANY

Executive Summary

SCRUFFS COMMUNITY NURSERY CASTLE DOUGLAS CIC is a recently formed social enterprise with no trading activity or meaningful financial resources reported to date. While regulatory filings are current and governance appears in place, the absence of revenue and negligible capital position present high solvency and operational risks. Careful due diligence into the company’s funding plans and business viability is essential before considering investment or credit exposure.

SCRUFFS COMMUNITY NURSERY CASTLE DOUGLAS COMMUNITY INTEREST COMPANY - Analysis Report

Company Number: SC733062

Analysis Date: 2025-07-29 14:15 UTC

1. Risk Rating: HIGH
   The company shows no trading activity and minimal financial resources since incorporation, raising significant solvency and operational sustainability concerns.

2. Key Concerns:

• Zero Turnover and Activity: No revenue or operational activity reported since incorporation in May 2022. This lack of trading suggests the business is not yet generating income or fulfilling its stated objectives.
• Minimal Financial Resources: Net current assets and total assets stand at £87 (cash) with shareholders' funds at £0 for the latest period. This extremely limited capital base suggests an inability to meet liabilities or invest in operations without external funding.
• No Stakeholder Engagement or Remuneration: The Community Interest Report confirms no stakeholder consultations and no director remuneration, which may indicate the company is inactive or in preparatory stages without clear operational momentum or governance incentives.

3. Positive Indicators:

• Current and Compliant Status: The company is active and up to date with all statutory filings including accounts and confirmation statements, demonstrating regulatory compliance and good governance discipline.
• Clear Governance Structure: There are three appointed directors with no reported disqualifications, and a named person with significant control, ensuring accountability.
• Community Interest Company Structure: As a CIC, the company benefits from an asset lock and social enterprise status which may facilitate access to grants or social funding sources.

4. Due Diligence Notes:

• Investigate the company’s business plan and funding sources to understand when and how trading will commence and how operational costs are being financed.
• Confirm whether the £87 cash balance is held in a business account and if there are any contingent liabilities or off-balance sheet commitments.
• Review any minutes or management accounts for insights into operational progress or challenges since formation.
• Verify director and stakeholder intentions regarding the company’s future viability and timeline for generating income.
• Evaluate the CIC community impact strategy and any pending contracts or funding applications.