Company Number: 13129917

Analysis Date: 2025-07-20 12:30 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   THE WELLDERNESS CIC shows modest but improving financial performance with a small profit in the most recent year after a prior loss. The company is very young (incorporated 2021) and operates in a niche sector (physical well-being activities, community events). Its limited scale and low turnover (£12.5k) restrict credit capacity. However, a positive operating profit, growing net assets, and a working capital surplus signal improving financial management and operational control. Credit should be extended cautiously with limits aligned to their cash generation and working capital position. Monitoring of cash flow and turnover trends is essential given the small absolute financial base.

2. Financial Strength:

• Total net assets increased from £127 in 2023 to £2,527 in 2024, reflecting accumulated retained earnings from a £2,402 profit.
• No fixed assets; all current assets are cash (£3,427), indicating a liquid but asset-light structure.
• Current liabilities are low (£900), resulting in a healthy net current asset position of £2,527, showing good short-term liquidity.
• Shareholders’ funds equal net assets, consistent with a guarantee company without share capital.
• The balance sheet is very small scale, but shows improvement and no signs of over-indebtedness.

3. Cash Flow Assessment:

• Cash balances increased substantially year-on-year (£434 to £3,427), indicating improved cash generation or funding inflows.
• Working capital is positive and sufficient to cover current liabilities multiple times, reducing liquidity risk.
• Operating profit of £2,994 suggests the company is generating cash from core activities, a positive for credit risk.
• Given the small scale, any disruption in cash inflows could impact liquidity, so close monitoring is warranted.

4. Monitoring Points:

• Continued revenue growth and profitability to build a more robust financial base.
• Maintenance of positive working capital and cash balances.
• Management of operating expenses to sustain profitability given low turnover.
• Timely filing of accounts and confirmation statements (currently up to date).
• Any changes in director appointments or control that could affect governance or financial strategy.
• External funding or grants, as the company is a Community Interest Company and may rely on donations or public funding.