COMPASS CAMPER CONVERSIONS LTD

Executive Summary

COMPASS CAMPER CONVERSIONS LTD exhibits a weakening financial position with minimal equity and negative working capital, raising concerns about its ability to meet short-term liabilities and service credit. The company’s small scale and declining asset base suggest limited capacity to absorb financial shocks. Credit extension is not recommended without significant improvement in liquidity and capital structure.

COMPASS CAMPER CONVERSIONS LTD - Analysis Report

Company Number: 12817087

Analysis Date: 2025-07-20 17:26 UTC

1. Credit Opinion: DECLINE. The company’s financial position shows deteriorating net assets over recent years, culminating in a very low net asset base of £1,060 as at 31 May 2024. Current liabilities exceed current assets by £6,264, indicating negative working capital and potential liquidity issues. The small scale (micro-entity) and minimal equity make it vulnerable to financial stress, and the lack of growth or profitability signals limited capacity to service additional debt or credit. Without evidence of improved cash flow or capital injection, extending credit would pose a high risk.

2. Financial Strength: The balance sheet reveals a declining asset base: fixed assets reduced from £14,798 in 2021 to £8,324 in 2024; current assets also fell from £24,443 in 2023 to £20,543 in 2024. Current liabilities remain high (~£26,800+), surpassing current assets, resulting in negative net current assets. Shareholders’ funds have eroded significantly from £15,895 in 2020 to just £1,060 in 2024, reflecting accumulated losses or capital withdrawals. This erosion undermines financial resilience and creditor protection.

3. Cash Flow Assessment: Negative net current assets indicate potential liquidity challenges. The working capital deficit means the company may struggle to meet short-term obligations without external support or improved cash inflows. The average employee count of one suggests a very small operational scale, which may limit revenue generation. No detailed cash flow statement is provided, but the trend in current assets and liabilities implies constrained operational liquidity.

4. Monitoring Points:

• Track changes in net current assets to detect liquidity improvements or further deterioration.
• Monitor any capital injections or shareholder loans that could bolster equity and working capital.
• Review cash flow statements if available to assess operational cash generation capacity.
• Watch for overdue filings or changes in director appointments that might signal governance issues.
• Monitor industry and market conditions affecting the manufacturing of motor vehicle parts, as this impacts revenue stability.