SIFSEI ELIYOHU

Executive Summary

Sifsei Eliyohu is a financially stable charity with positive net assets and adequate working capital, demonstrating prudent management of funds and operational risks. Its liquidity is somewhat constrained due to reduced cash balances offset by inventory and receivables, necessitating close cash flow monitoring. Overall, the charity’s credit risk is low, supporting approval for credit, with attention to ongoing liquidity and governance oversight.

SIFSEI ELIYOHU - Analysis Report

Company Number: 14123064

Analysis Date: 2025-07-29 12:17 UTC

Credit Opinion:
APPROVE. Sifsei Eliyohu is a recently incorporated charity operating as a private company limited by guarantee, without share capital. The company demonstrates stable financial fundamentals with positive net assets and net current assets. Its financial statements show sound financial stewardship by trustees, minimal governance costs, and low fundraising expenses. The charity’s ability to manage operational risks and maintain reserves indicates a low credit risk profile. However, as a non-trading charitable entity with limited cash reserves, credit facilities should be extended with consideration for its restricted cash flow nature and the specific use of funds for charitable activities.

Financial Strength:
The balance sheet as of 31 May 2024 shows net assets of £18,554, consistent with the prior year’s £18,929, reflecting stability. Current assets total £39,752, comprising stock (£19,250), debtors (£13,104), and cash (£7,398), against current liabilities of £21,198. The charity maintains positive net current assets (working capital) of £18,554, indicating adequate short-term financial strength to cover liabilities. The balance sheet shows no long-term liabilities. The slight reduction in cash from £19,649 to £7,398 is offset by increased stock and debtors, suggesting funds are tied up in inventory and receivables typical for a charity engaged in book sales and granting activities. No signs of financial distress or over-leverage are evident.

Cash Flow Assessment:
Cash generation appears modest with £7,398 in cash at year-end, down from £19,649 the previous year. The charity’s income primarily derives from donations (£47,246 total), charitable activities (£22,771), and other trading activities (£3,996), with expenditures closely matching income (£74,388). The net movement in funds is a small deficit of £375, showing near break-even operations. The working capital position is comfortable, but cash liquidity is tight relative to current liabilities. The presence of stock and debtors indicates some operational cash conversion cycle risk. For credit facilities, monitoring cash flow timing and the ability to convert stock/debtors to cash efficiently is important. The charity’s reserves policy aims to maintain net current assets as a minimum, which supports liquidity.

Monitoring Points:

• Cash levels and liquidity: Monitor cash trends and timing of debtor collections, especially given cash decline in the latest year.
• Stock management: Assess turnover of stock and its conversion to cash or revenue to avoid liquidity constraints.
• Grant funding and expenditure alignment: Ensure grants and charitable activity costs remain aligned with income streams to prevent deficits.
• Governance and control: Given the trustees manage operations collectively without CEO involvement, monitor governance practices and financial oversight.
• Restricted funds utilization: Track restricted funds usage to confirm compliance with donor conditions and avoid potential liabilities.
• Filing and compliance: Accounts and confirmation statements are up to date; maintain timely filings to mitigate regulatory risks.