THE WHEELCHAIR SKILLS COLLEGE CIC

Executive Summary

The Wheelchair Skills College CIC operates with negative net assets and persistent working capital shortfalls, reflecting weak financial resilience and limited capacity to service debt. Despite a small cash buffer, the company’s reliance on deferred income and accruals coupled with no trading profits suggests elevated risk. Credit facilities are not recommended without significant financial improvement or capital support.

THE WHEELCHAIR SKILLS COLLEGE CIC - Analysis Report

Company Number: 13442090

Analysis Date: 2025-07-20 16:18 UTC

1. Credit Opinion: DECLINE
   The Wheelchair Skills College CIC demonstrates weak financial health with persistent negative net assets and net current liabilities indicating ongoing working capital deficiencies. The company has not shown evidence of profitability or accumulation of reserves, and its limited cash buffer relative to creditors places it at risk of liquidity strain. The entity’s status as a community interest company with no employees and minimal tangible assets further constrains its operational scale and resilience. Given the absence of positive equity, recurring losses, and working capital deficits, the company is unlikely to sustain debt service obligations reliably.

2. Financial Strength:
   The balance sheet reveals net liabilities of £3,607 as of June 2024, worsening from £2,351 in the prior year. Fixed assets are minimal (£817) and have decreased, while current liabilities have increased to £17,361, driven primarily by accruals and deferred income. The company’s negative net current assets (-£4,424) highlight a reliance on short-term funding or deferred income to finance operations. The absence of shareholders’ equity and accumulated losses reflected in the negative profit and loss reserve reduce financial flexibility and increase insolvency risk.

3. Cash Flow Assessment:
   Cash holdings of £12,800 provide some short-term liquidity; however, current liabilities exceed current assets, indicating a tight working capital position. Debtors are low (£137), suggesting limited receivables generation, likely consistent with the company’s operating model. The increase in accruals and deferred income may provide temporary cash inflows, but these are liabilities due within one year and do not constitute sustainable cash generation. The company’s ability to maintain liquidity depends heavily on continued funding or grants rather than operational cash flow.

4. Monitoring Points:

• Track changes in net current assets to assess improvements in working capital management.
• Monitor cash balances and creditor payment patterns to detect liquidity stress.
• Review future filing of profit and loss data to verify if operational performance improves and losses reduce.
• Watch for any changes in funding sources or grants that support operations, given absence of trading income.
• Evaluate director and governance disclosures for any indications of financial restructuring or capital injections.