SPRINGBURN AUDITORIUM C.I.C.

Executive Summary

Springburn Auditorium C.I.C. operates a community arts venue with a mission-driven model but demonstrates a weak financial position with negative net assets and working capital deficits. Its cash flow depends heavily on grant funding and community support, and it currently lacks the financial strength or commercial income to service debt. Based on current financials, credit facilities are not recommended.

SPRINGBURN AUDITORIUM C.I.C. - Analysis Report

Company Number: SC684412

Analysis Date: 2025-07-29 16:37 UTC

1. Credit Opinion: DECLINE
   Springburn Auditorium C.I.C. shows a weak financial position with net current liabilities of £927 as of 31 December 2023, and negative net assets of the same amount. The company is a community interest company limited by guarantee without share capital, relying heavily on grants and community funding rather than commercial revenue streams. There is no evidence of profitability or positive cash generation, and the company has been operating at a loss since inception. The lack of employees and minimal director remuneration further indicate a limited operational scale. Given the negative working capital, absence of significant assets, and a business model focused on community arts rather than commercial income, the risk of inability to service any debt or credit facility is high. Therefore, credit facilities should be declined.

2. Financial Strength:
   The balance sheet reveals a fragile financial structure. Current assets are limited to £10,093 in cash with no other short-term assets, against current liabilities of £11,020 mainly comprising accruals and deferred income. Net assets are negative at £927, reflecting accumulated losses since incorporation. There are no fixed or long-term assets, and no shareholders’ equity as the company is limited by guarantee. The company’s accounts do not disclose profit and loss details but confirm ongoing losses. The financial position is weak with no buffer to absorb shocks or delays in grant funding or income.

3. Cash Flow Assessment:
   Cash holdings have increased from £1,362 in 2022 to £10,093 in 2023, which is positive but remains modest. However, the company’s liabilities exceed cash by £927, indicating tight liquidity. No employees are on staff, and director payments are minimal, suggesting low operating costs but also limited capacity to generate income. The reliance on grants, in-kind contributions (such as reduced-rate or free venue use), and community donations signals cash flow vulnerability. Working capital is negative, which may hamper the ability to meet short-term obligations without timely receipt of funding.

4. Monitoring Points:

• Monitor cash flow closely, ensuring timely receipt of grant funding and any other income streams to meet liabilities.
• Watch any changes in current liabilities or accruals that could indicate increasing financial pressure.
• Track any shifts in the governance or management structure that might affect financial stewardship.
• Review future accounts for evidence of improved profitability or increased asset base.
• Assess any new funding arrangements or commercial income sources that could strengthen liquidity and net asset position.