Company Number: 13881070

Analysis Date: 2025-07-20 12:41 UTC

1. Risk Rating: MEDIUM

Justification: WE ARE UTCAI C.I.C. is an active private company limited by guarantee operating in the education sector with a very recent incorporation date (2022). The financials show a significant reduction in turnover from £50,450 in 2022 to £6,268 in 2023, accompanied by an operating loss in 2023 (£2,385). However, the company maintains positive net current assets and net assets, supported by cash reserves of £17,048 as of 2023 year-end. The company’s small scale, lack of employees, and modest turnover increase operational risk. No compliance or filing issues are noted.

2. Key Concerns:

• Declining Revenue and Operating Loss: Turnover dropped sharply in 2023 with a corresponding operating loss, suggesting potential challenges in revenue generation or sustainable operations.
• Limited Scale and No Employees: With no employees reported and minimal turnover, the company may have limited operational capacity, impacting its ability to deliver on its mission long term.
• Reliance on Cash Reserves and Small Asset Base: Although cash and net assets are positive, the small absolute amounts mean financial resilience is low if losses persist.

3. Positive Indicators:

• Positive Net Current Assets and Net Assets: The company has a healthy working capital position and overall net assets, indicating solvency at the reporting date.
• Up-to-Date Filings and Compliance: No overdue accounts or confirmation statements, demonstrating sound regulatory compliance.
• Established Governance and PSC Transparency: Multiple persons with significant control are registered with appropriate appointments and no director disqualifications or governance concerns are evident.
• Community Impact and Clear Mission: The company has outlined a clear social mission with evidence of stakeholder engagement and community impact, supporting operational relevance.

4. Due Diligence Notes:

• Investigate the causes behind the significant revenue decline in 2023 versus 2022 and assess management plans for recovery or sustainability.
• Review cash flow forecasts and liquidity management to ascertain ability to meet short-term obligations if revenue remains low.
• Understand the operational model given no employees are reported — does the company rely on volunteers, contractors, or external partners? Assess risks related to this structure.
• Confirm whether there are any contingent liabilities or off-balance-sheet risks not disclosed.
• Evaluate funding sources and financial support mechanisms available to maintain ongoing operations.
• Review governance documents for any unusual arrangements related to the multiple PSCs and director changes.