Company Number: 13485347

Analysis Date: 2025-07-29 19:12 UTC

1. Credit Opinion: DECLINE
   PROJECT B CIC currently exhibits weak financial health with negative net assets of £12,647 as of the latest accounts (2024), worsening from £6,869 the previous year. The company operates at a net current liability position (-£12,647), indicating insufficient working capital to meet short-term obligations. There is no record of revenue generation or employee headcount, and the entity is still in a start-up phase focusing on establishing services and stakeholder relationships, with no funding or income reported yet. Given these factors and the lack of financial resilience, the company is not presently capable of servicing debt or commercial credit facilities. Approval is not recommended until there is evidence of revenue generation, improved liquidity, and strengthened equity.

2. Financial Strength:
   The balance sheet reveals a deepening negative equity position, with net assets declining from -£6,869 in 2023 to -£12,647 in 2024. Current liabilities have increased from £8,171 to £13,175, while current assets (primarily cash) have decreased from £1,302 to £528. The company has no fixed assets or other significant assets to support its liabilities. The absence of shareholders’ equity (being a CIC limited by guarantee) means it relies on external funding or grants, which have not yet materialized. The negative net current assets position signals financial strain and an inability to cover short-term debts from liquid assets.

3. Cash Flow Assessment:
   Cash on hand has decreased significantly, indicating cash burn without incoming revenue. The company has no employees and no loan liabilities, but other creditors have increased markedly. The lack of operating income and reliance on external funding, which is not yet secured, suggests ongoing liquidity risk. Working capital is negative and deteriorating, which is a strong indicator of poor short-term financial health and an inability to meet immediate creditor demands without additional capital injection.

4. Monitoring Points:

• Track progress on securing funding or grants to generate sustainable cash inflows.
• Monitor changes in current liabilities and cash balances quarterly to assess liquidity trends.
• Review any new contracts or service agreements that could provide revenue streams.
• Watch for improvements in net assets and working capital to confirm financial stabilization.
• Evaluate management’s ability to control costs and comply with regulatory requirements as the business develops.