JOSH CAMPBELL DESIGN LTD

Executive Summary

Josh Campbell Design Ltd exhibits significant liquidity and solvency risks, with minimal net assets and very low cash reserves juxtaposed against sustained current liabilities and tax obligations. While operational activity appears to be increasing, as evidenced by rising trade debtors, the company’s fragile financial position warrants thorough investigation into debtor collectability and tax liabilities before considering investment. Regulatory compliance is current, and governance appears stable, but financial sustainability remains a concern at this stage.

JOSH CAMPBELL DESIGN LTD - Analysis Report

Company Number: 14366909

Analysis Date: 2025-07-29 12:42 UTC

1. Risk Rating: HIGH
   Justification: The company displays persistent net current liabilities and extremely low net assets (only £7 in 2024), indicating a fragile financial position. Cash reserves have dramatically declined from £7,086 in 2023 to £185 in 2024, raising liquidity concerns. The presence of significant corporation tax creditors further stresses short-term obligations.

2. Key Concerns:

• Liquidity Risk: Cash on hand is minimal (£185), while current liabilities slightly exceed current assets, resulting in negative net working capital (-£162). This suggests potential challenges in meeting immediate financial obligations.
• Solvency Risk: Net assets are effectively negligible (£7), with persistent net current liabilities, indicating the company’s equity base is insufficient to absorb shocks or fund growth.
• Tax Liability: Corporation tax creditors remain high (£5,990), close to the total current liabilities, implying the company may be accruing tax debts which could result in HMRC enforcement action if unpaid.

3. Positive Indicators:

• Revenue Growth Indicated by Debtors: Trade debtors increased significantly from £1,700 to £5,800, which may indicate increased sales or contracts, suggesting operational activity is ongoing.
• Compliance: The company is up to date with filing requirements (accounts and confirmation statements are not overdue), demonstrating regulatory compliance and good governance in that respect.
• Stable Management: The sole director, Joshua Huntley Campbell, has been in place since incorporation with no indication of disqualification or governance issues.

4. Due Diligence Notes:

• Verify the nature and collectability of trade debtors, as a large debtor balance relative to low cash may impact liquidity if not collectible timely.
• Investigate the corporation tax liability: whether this is a deferred payment, disputed amount, or overdue tax debt, and if any payment plans or enforcement actions are in place.
• Assess cash flow projections and business plan viability to understand if the company can improve liquidity and solvency or if further capital injection is required.
• Confirm the company’s revenue sources and contract pipeline to evaluate operational stability and future earnings capacity.