CIM FARM CARAVAN AND CAMPING CYF

Executive Summary

Cim Farm Caravan and Camping Cyf is a micro-entity operating in the recreational camping sector with positive equity but ongoing liquidity challenges, reflected by negative net current assets over multiple years. The company maintains good compliance and governance but requires further scrutiny of its cash flow management and operational sustainability to fully assess financial stability.

CIM FARM CARAVAN AND CAMPING CYF - Analysis Report

Company Number: 12831477

Analysis Date: 2025-07-20 16:07 UTC

1. Risk Rating: MEDIUM
   The company shows persistent negative net current assets over multiple years, indicating liquidity concerns. However, it remains active, solvent on a total assets basis, and compliant with filing requirements, which mitigates immediate high risk.

2. Key Concerns:

• Liquidity Deficit: Net current liabilities approximate £73k for the last two years, signaling ongoing cash flow strain to meet short-term obligations.
• Declining Fixed Assets: Fixed assets decreased from £159,660 in 2023 to £145,210 in 2024, possibly reflecting asset disposals or impairments impacting operational capacity.
• Minimal Share Capital & Staffing: Share capital is only £100, and the company averaged 1 employee in 2024, raising questions about operational scale and resilience.

3. Positive Indicators:

• Compliance: No overdue filings; accounts and confirmation statements are up to date, indicating sound governance.
• Stable Shareholders’ Funds: Equity remains positive at £71,770, showing the company is not insolvent on a balance sheet basis.
• Business Focus: Operating in a niche sector (recreational vehicle parks, camping grounds) with potential for steady demand.

4. Due Diligence Notes:

• Examine the nature and terms of current liabilities to assess refinancing risk or creditor pressure.
• Review cash flow statements and bank balances to evaluate liquidity beyond balance sheet snapshots.
• Investigate reasons behind fixed asset reduction and whether this affects revenue-generating capacity.
• Confirm the operational model given the low employee count and whether key operations rely on contractors or directors.
• Assess directors’ plans for improving working capital and sustaining the business given persistent liquidity deficits.