CAMP SOHO LTD

Executive Summary

CAMP SOHO LTD is currently undergoing wind-down after ceasing its project, reflected in its minimal positive net current assets and negligible trading activity. The company's financial position remains weak with very limited cash and equity, raising concerns about its ability to meet obligations beyond the short term. Given these factors, new credit facilities are not advisable, and the company should be closely monitored until formal closure.

CAMP SOHO LTD - Analysis Report

Company Number: 14018683

Analysis Date: 2025-07-29 14:52 UTC

1. Credit Opinion: DECLINE
   CAMP SOHO LTD shows signs of financial distress and is in the process of winding down within 12 months as per directors' going concern note. The company has only recently become positive in net current assets (£2,492) after two years of negative net current assets (_{-£17,943) and negative shareholders' funds (}-£17,953). Such a turnaround from deep negative equity to a marginal positive working capital position is insufficient evidence of sustainable financial health or ability to service debt. The operational outlook is poor given the company is ceasing its project and planning to wind down. Directors have not provided profit and loss information, but the balance sheet and note disclosures indicate cessation of trading. This materially weakens repayment capacity and resilience. The controlling shareholder is a single entity (Palindrome Holdings Ltd), suggesting concentrated ownership but no indication of fresh capital injection or restructuring. Overall, the credit risk is high, and approval for new credit facilities is not recommended.

2. Financial Strength:

• Shareholders' funds improved from -£17,953 in 2023 to a marginal positive £2,492 in 2024, primarily driven by reduction in liabilities rather than asset growth.
• Current assets are predominantly cash (£19,357) with negligible debtors (£150), indicating limited ongoing trading activity.
• Current liabilities reduced drastically from £424k to £17k year-over-year, reflecting possibly repayment or write-off of creditors.
• No fixed assets reported; the balance sheet is minimal and reflects a winding down operation.
• The company’s equity base is extremely small (£10 share capital), increasing risk exposure to creditors.

3. Cash Flow Assessment:

• Cash at bank is low (£19,357) and likely to be consumed rapidly given the winding down plan and ongoing obligations.
• Debtor levels are negligible, indicating poor or no ongoing revenue generation.
• Working capital is positive but minimal (£2,492), leaving almost no buffer for unforeseen expenses or delays in creditor payments.
• The presence of deferred income in the prior year (£300,000) has disappeared, consistent with cessation of project income recognition.
• No indication of external borrowing or credit facilities currently utilized or proposed.

4. Monitoring Points:

• Monitor final liquidation or wind-down progress and potential creditor settlements.
• Track cash burn rate monthly to assess if remaining cash suffices to meet liabilities and closure costs.
• Watch for any capital injections or restructuring proposals that might improve equity and liquidity.
• Review any overdue filings or changes in director status that could indicate governance issues.
• Confirm no new trading activity or contractual commitments that might increase financial exposure.