SHARING KAM'S CUDDLES CIC

Executive Summary

SHARING KAM'S CUDDLES CIC is a small, newly established community interest company with limited financial activity and no shareholder equity, posing moderate solvency and operational risks. The company demonstrates consistent regulatory compliance and a clear social purpose, although its sustainability depends on securing ongoing funding and expanding operational capacity. Further due diligence on cash flows and governance arrangements is recommended to better understand its financial stability and risk profile.

SHARING KAM'S CUDDLES CIC - Analysis Report

Company Number: 13884628

Analysis Date: 2025-07-29 17:43 UTC

1. Risk Rating: MEDIUM
   The company is a recently incorporated Community Interest Company (CIC) limited by guarantee, with minimal financial activity and no recorded turnover or profits in the most recent financial year. While it appears to be compliant with filing obligations, the lack of financial substance and shareholder funds indicates moderate risk regarding solvency and operational stability.

2. Key Concerns:

• Minimal Financial Activity: The latest accounts show zero turnover and zero profit/loss, indicating limited trading or income generation, which raises concerns about the company’s ability to sustain operations or meet liabilities.
• No Shareholders' Funds: The 2024 accounts report zero shareholders’ funds and members’ funds, suggesting no equity buffer to absorb losses or support ongoing activities.
• Single Employee and Director Dependency: The company operates with one employee and one active director who is also the Person with Significant Control (PSC), increasing operational and governance risks related to continuity and decision-making concentration.

3. Positive Indicators:

• Compliance with Filing Requirements: The company’s accounts and confirmation statements are filed on time, with no overdue filings or penalties.
• Clear Community Focus: The CIC report outlines socially beneficial activities supporting vulnerable groups, which aligns with the CIC's purpose and may attract grant funding or community support.
• No Director Remuneration: The absence of director remuneration reduces cash outflows, which may help preserve limited resources.

4. Due Diligence Notes:

• Investigate the company’s funding sources and cash flow situation to assess liquidity beyond the balance sheet figures.
• Review any underlying contracts, grants, or donations supporting the company’s community activities to determine sustainability.
• Assess director capacity and plans for governance continuity, given the small leadership team and dependency on one individual.
• Confirm the accuracy and completeness of financial disclosures, particularly regarding assets and liabilities not detailed in the summary accounts.
• Monitor future financial filings to detect any changes in trading activity or financial health.