SIMBA SPORTS WITHOUT BOUNDARIES CIC

Executive Summary

SIMBA SPORTS WITHOUT BOUNDARIES CIC is in a fragile financial state characterized by negative net current assets and accumulated losses, indicating liquidity stress and operational infancy. Immediate focus on improving cash flow and expanding revenue-generating activities is essential to stabilize the company. With prudent financial management and strategic funding, the company has potential to recover and fulfill its community mission.

SIMBA SPORTS WITHOUT BOUNDARIES CIC - Analysis Report

Company Number: 13528753

Analysis Date: 2025-07-29 17:08 UTC

Financial Health Assessment: SIMBA SPORTS WITHOUT BOUNDARIES CIC

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1. Financial Health Score: D

Explanation:
The company exhibits clear signs of financial strain, with negative net current assets and accumulated losses, indicating a fragile financial position. The absence of cash and reliance on debt puts it in a precarious state. While not insolvent yet, the "symptoms of distress" are evident, warranting urgent attention.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	850	Very low; mainly debtors, no cash reserves
Cash	0	No liquid cash to cover immediate expenses
Current Liabilities	5,309	Liabilities due within one year exceed assets
Net Current Assets	-4,459	Negative working capital — a warning sign
Net Assets (Shareholder Funds)	-4,459	Negative equity indicates accumulated losses
Number of Employees	1	Minimal staffing, low operational scale
Turnover & Profit	Not disclosed	No profit data, but accumulated loss evident

• Negative Net Current Assets: The company cannot cover its short-term debts with available assets, reflecting liquidity stress.
• No Cash on Hand: Zero cash balance signals an inability to meet immediate financial obligations without external support.
• Accumulated Losses: The negative shareholders funds (equity) of £4,459 reflect that the company has incurred losses since inception.
• Minimal Operational Activity: Only one employee and minimal activity during the year indicate early-stage development or limited scale.

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3. Diagnosis

Financial Symptoms:
The company is in the early stages of operation (incorporated in 2021), which usually involves initial investment phases and potentially negative financial results. However, the vital signs reveal "symptoms of distress" characterized by:

• Liquidity Deficiency: Negative net current assets and zero cash imply the company is unable to meet short-term liabilities from current resources, akin to a patient with low blood pressure and weak pulse needing urgent support.
• Accumulated Deficit: The negative net assets resemble a patient whose vital organs show signs of wear—indicating that the business has operated at a loss overall.
• Low Operational Scale: Minimal staffing and limited activity point to a start-up or pilot phase with constrained resources.

Underlying Causes:

• Limited revenue generation or delayed income recognition leading to cash shortages.
• Possibly unfinanced current liabilities or short-term loans to cover initial expenses.
• No director remuneration, indicating cost control but also limited investment in growth.

Overall Condition:
The company’s financial health is fragile, with a negative liquidity position and equity deficit. It is not insolvent or in liquidation but requires intervention to restore "healthy cash flow" and strengthen its financial "vital signs."

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4. Recommendations

Immediate Actions:

• Improve Liquidity: Seek short-term funding or grants to inject cash, stabilizing working capital and ensuring bills can be paid on time.
• Enhance Revenue Streams: Accelerate activities that generate income, such as expanding sports education programs or renting sports goods, to improve cash inflows.
• Cost Control: Maintain tight control on operating expenses while scaling activities gradually to avoid worsening the deficit.
• Financial Monitoring: Implement regular cash flow forecasting and financial reporting to detect early warning signs and adjust plans proactively.

Medium-Term Strategies:

• Stakeholder Engagement: Consult with community stakeholders and potential sponsors to boost funding and support, given the community interest nature of the company.
• Explore Grants and Subsidies: As a Community Interest Company, pursue applicable social enterprise funding to support mission-driven activities.
• Build Reserves: Aim to generate surpluses over time to build positive net assets, improving solvency and financial resilience.
• Director Support: Consider external advisory support to strengthen financial planning and strategic development.

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