VIDEO GAME PRESERVATION MUSEUM CIC

Executive Summary

Video Game Preservation Museum CIC operates with a clear community focus but currently faces significant financial stress, characterized by negative net assets and poor liquidity. While regulatory compliance is maintained and operating expenses appear low, the company’s ability to meet its financial obligations without external support is questionable. Further investigation into revenue sources and creditor arrangements is essential to assess sustainability.

VIDEO GAME PRESERVATION MUSEUM CIC - Analysis Report

Company Number: 14224909

Analysis Date: 2025-07-20 12:54 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by persistent negative net assets and current liabilities substantially exceeding current assets. The company’s financial position deteriorated markedly over two years, raising concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets: The company’s net assets worsened from -£1,681 in 2023 to -£5,265 in 2024, indicating accumulated losses and an erosion of equity.
• Liquidity Shortfall: Current liabilities of £5,587 far exceed current assets of £17, resulting in negative net working capital of -£5,570, which signals potential cash flow constraints.
• Lack of Revenue Disclosure: Absence of turnover or profit & loss details limits assessment of operational income sustainability and raises questions regarding ongoing revenue generation.

3. Positive Indicators:

• Active Status and Compliance: The company is active with no overdue filings, indicating regulatory compliance and administrative diligence.
• Clear Social Purpose: The Community Interest Company (CIC) status and detailed community impact report demonstrate a focused mission with meaningful public benefit activities, which may attract grants or donations.
• Low Operating Costs: Only one employee and no director remuneration suggest a lean cost structure, which may mitigate cash burn.

4. Due Diligence Notes:

• Examine Cash Flow Sources: Investigate how the company is financing its operations given the negative working capital and minimal cash reported. Determine if external funding, grants, or donations are supporting cash needs.
• Review Contracts and Revenue Streams: Obtain detailed financials or management accounts to verify turnover, revenue sustainability, and any contractual obligations or revenue dependencies.
• Assess Contingent Liabilities and Creditors: Clarify the nature of the £5,090 other creditors and £497 accruals to understand payment terms, creditor relationships, and potential risk of creditor enforcement actions.

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