Credit Analysis: Cameratech Projects Limited

1. Credit Opinion: DECLINE

Reasoning: The company presents an unacceptable credit risk profile following a severe deterioration in its financial position during the year ended 31 October 2025. Net assets collapsed by 86% from £60,079 to £8,452, whilst cash reserves fell by 98% from £72,592 to just £1,300. Critically, the company has moved into a net current liability position of (£7,566), meaning it cannot cover short-term obligations from current assets. This represents a fundamental liquidity crisis that calls into question the company's ability to continue as a going concern, let alone service additional debt obligations.

2. Financial Strength

Balance sheet deterioration is severe and alarming:

The balance sheet has been fundamentally weakened. Net assets of £8,452 provide virtually no buffer against further losses, and the share capital of just £216 means the P&L reserve has fallen to only £8,236 after what appears to be substantial trading losses in the period.

Historical volatility is deeply concerning. The company has flirted with insolvency multiple times: - 2016: Net assets of just £143 - 2019: Net assets of just £700 - 2020: Net assets of only £3,100

This pattern suggests a business that is structurally fragile, with net assets apparently inflated during 2021-2023 by what was likely a large contract or temporary revenue stream that has now reversed.

Tangible assets have declined from £30,172 to £16,018, with motor vehicles and fixtures being depreciated at 20% straight line. Asset disposals of £6,396 suggest the company may be selling equipment to generate cash.

3. Cash Flow Assessment

Liquidity position is critical:

Current ratio: 0.77x (2024: 1.30x) — Below 1.0x, indicating the company cannot meet its short-term obligations from current assets.

Key observations:

• Cash depletion: The fall from £72,592 to £1,300 is extraordinary and suggests either massive trading losses, significant repayments, or extraction of funds. Without a P&L account (filed as abridged), the exact cause is obscured.

• Debtors halved: The reduction from £44,264 to £22,767 could indicate improved collections, but more likely reflects declining revenue or a major debtor being settled/written off.

• Creditors reduced: The fall from £99,949 to £33,633 suggests significant creditor payments were made, potentially explaining the cash depletion. This may represent settlement of a large trade creditor or director loan.

• Working capital deficit of £7,566 means the company is technically insolvent on a current basis and may struggle to pay suppliers and HMRC obligations.

4. Monitoring Points

If any credit facility were considered (which I do not recommend), the following would require ongoing scrutiny:

1. Going concern status: The net current liability position raises serious questions about whether the company can continue trading. Directors should provide a going concern assessment.

2. Cash runway: With only £1,300 in cash, the company has minimal buffer for operational expenses, tax payments, or unexpected costs. Monthly cash flow monitoring is essential.

3. Revenue trajectory: The abridged accounts obscure the P&L, but the halving of debtors and reduction in stock suggests significant revenue decline. Full accounts should be requested.

4. Related party transactions: The 2024 accounts note expenses paid on behalf of a related party of £3,420 (cleared in 2025). This intermingling of finances is a governance concern for a husband-and-wife-owned company.

5. Employee reduction: Staff numbers fell from 5 to 4, potentially indicating cost-cutting or reduced workload capacity.

6. Creditor payment behaviour: Monitor whether the reduced creditor position reflects normal trade or settlement of preferential/connected party debts.

7. Historical insolvency risk: The company has repeatedly operated with near-zero net assets (2016, 2019), suggesting a pattern of minimal capitalisation and potential for further deterioration.