Company Number: SC676858

Analysis Date: 2025-07-29 13:24 UTC

1. Credit Opinion: APPROVE
   Cam Lighting Ltd shows improving financial health with a consistent increase in net assets and net current assets over recent years, indicating a strengthening balance sheet. The company’s micro-entity status and low employee count limit operational complexity and risk. The director has maintained timely filings and compliance. While the current asset base and liquidity appear adequate to cover short-term liabilities, the small size means exposure to market fluctuations in the television programme production sector should be monitored. Overall, the company demonstrates sufficient capability to meet credit obligations for typical SME financing.

2. Financial Strength:
   The balance sheet reveals a steady increase in net assets from £12,304 in 2020 to £88,494 in 2024, reflecting retained earnings growth and an accumulation of working capital. Current assets nearly doubled from £94,744 in 2023 to £168,788 in 2024, while current liabilities increased moderately from £53,594 to £79,399. The positive net current assets of £89,389 indicate healthy short-term financial strength and no immediate liquidity pressure. The minimal share capital (£1) is typical for micro companies but equity growth is supported by profits retained in reserves.

3. Cash Flow Assessment:
   The company’s working capital position is solid, with current assets comfortably exceeding current liabilities by a factor of over 2:1 as of the latest accounts. This suggests good short-term liquidity to cover operational expenses and immediate debts. No audit exemption and micro-entity reporting limit detailed cash flow information, but the consistent increase in net current assets supports a stable cash flow trend. The business employs only one person, which likely keeps overheads low, supporting positive cash flow management.

4. Monitoring Points:

• Continue monitoring the growth in current liabilities relative to current assets to ensure liquidity remains strong.
• Watch for any changes in the television programme production sector that could impact revenue streams or contract stability.
• Keep track of director filings and compliance to avoid regulatory risk.
• Monitor net asset trends and any significant changes in working capital components such as debtors or creditors that could signal operational stress.