CAMPBELL CUSTOM ENGINEERING LTD

Executive Summary

Campbell Custom Engineering Ltd has shown a positive financial turnaround with improved liquidity and net assets in its first two years, supported by strong owner control. Despite being a micro-entity with limited scale, the company’s balance sheet and working capital position justify credit approval with prudent limits. Ongoing monitoring of creditor management and cash flow will be essential as the business develops.

CAMPBELL CUSTOM ENGINEERING LTD - Analysis Report

Company Number: NI684714

Analysis Date: 2025-07-20 13:40 UTC

1. Credit Opinion: APPROVE with caution. Campbell Custom Engineering Ltd demonstrates improving financial health with a positive working capital turnaround and increased net assets in its second year of trading. However, as a micro-entity with a single director and minimal employees, the company’s scale and operational history are limited. The owner’s full control and clear management responsibility are positive, but the business remains vulnerable to sector-specific and economic risks. Approval is recommended for modest credit facilities with prudent limits and regular monitoring.

2. Financial Strength: The balance sheet shows a marked improvement year-on-year. Fixed assets decreased slightly from £5,534 to £4,152, indicating low capital investment but possibly stable asset base. Current assets increased marginally to £11,410, while current liabilities were significantly reduced from £12,400 to £4,764, resulting in net current assets of £6,646 compared to a negative £1,618 previously. Total net assets rose from £3,916 to £7,500, reflecting retained earnings and better liquidity. The capital structure is simple with shareholders’ funds matching net assets, indicating no external equity or complex financing.

3. Cash Flow Assessment: The company has moved to a comfortable positive working capital position, improving its short-term liquidity and ability to meet immediate obligations. Current liabilities are less than half the prior year, showing enhanced creditor management or repayment. Although no detailed cash flow statement is provided, the net current asset position and improved accruals management (noted deferred income) suggest operational cash inflows are sufficient to cover short-term debts. The micro size and single employee base imply low overheads, supporting cash flow resilience.

4. Monitoring Points:

• Monitor creditor days and current liabilities closely to ensure the company does not revert to a negative working capital position.
• Watch for consistent profitability and cash generation in future accounts to support further credit extension.
• Track any changes in ownership or management structure given the company’s single director control.
• Assess sector risks related to engineering and electronic manufacturing, especially supply chain or demand fluctuations.
• Confirm timely filing of future accounts and confirmation statements to maintain regulatory compliance.