Company Number: 13150292

Analysis Date: 2025-07-20 18:54 UTC

1. Risk Rating: MEDIUM

Justification: TAP CREATIVE CIC is a recently incorporated community interest company with a modest asset base and limited current assets, showing a decline in liquidity over the past year. While it maintains positive net assets and compliance with filing requirements, the negative net current assets in the latest year signal potential short-term liquidity pressures.

2. Key Concerns:

• Liquidity Deterioration: Current assets dropped sharply from £4,211 to £301 while current liabilities remain at £792, resulting in negative net working capital (£-491) at the last reporting date.
• Operating Activity: The company reports zero employees and minimal director remuneration (£725), indicating limited operational scale or possibly reliance on volunteers or contractors, which may impact sustainability.
• Asset Utilisation and Depreciation: Tangible fixed assets have decreased from £11,290 to £7,527, with significant annual depreciation charges, which raises questions about asset replacement and investment plans.

3. Positive Indicators:

• Compliance and Governance: The company is current with all statutory filings and has no overdue accounts or confirmation statements, demonstrating good regulatory compliance.
• Community Impact Focus: The Community Interest Report outlines a clear social mission with engagement of stakeholders and positive community outcomes, which may support ongoing funding opportunities.
• Positive Net Assets: Despite liquidity pressures, the company maintains positive net assets (£5,606), indicating a buffer to absorb short-term challenges.

4. Due Diligence Notes:

• Investigate cash flow timing and funding sources to understand liquidity management and if grant income or other funds are sufficient to cover operational needs.
• Clarify the nature of staffing and operational model given zero employees reported and low director remuneration.
• Review asset management strategy, including plans for replacing or maintaining tangible fixed assets and impact on future financial position.
• Assess funding agreements and sustainability of grant income supporting the community programmes.
• Confirm absence of contingent liabilities or off-balance sheet obligations, especially related to the community projects or leases.