OH CAMERA SOLUTIONS LIMITED

Executive Summary

OH Camera Solutions Limited is operational with positive net assets but shows significant liquidity tightening and equity erosion over the past year, signaling early financial distress symptoms. Immediate focus on liquidity management, cost control, and capital strengthening is essential to restore financial health and ensure sustainable business operations.

OH CAMERA SOLUTIONS LIMITED - Analysis Report

Company Number: 14367415

Analysis Date: 2025-07-29 12:41 UTC

Financial Health Assessment for OH CAMERA SOLUTIONS LIMITED

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1. Financial Health Score: C

Explanation:
OH Camera Solutions Limited displays signs of financial stability but also symptoms of emerging strain. The company shows positive net assets and working capital, which are vital signs of financial life. However, a significant reduction in net current assets and net assets compared to the prior year indicates some liquidity tightening and erosion of equity. Given this mixed picture, a "C" rating reflects cautious stability with room for improvement.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	2,509	1,618	Small fixed asset base typical for a micro company; slight increase indicates modest investment.
Current Assets	17,117	23,830	Decline of ~28%; less cash/debtors or stock available to meet short-term obligations.
Current Liabilities	12,757	8,921	Increase by ~43%; higher short-term debts or payables due, raising liquidity pressure.
Net Current Assets (Working Capital)	4,360	14,909	Sharp drop (~71%) signals reduced buffer to cover short-term liabilities—early distress sign.
Provisions for Liabilities	359	74	Increased provisions could indicate anticipated future costs or risks.
Accruals and Deferred Income	948	1,201	Slight decrease; still represents obligations not yet settled.
Net Assets (Equity)	5,562	15,252	Decline of ~64%; equity erosion potentially from losses or asset write-downs—warning symptom.
Shareholders Funds	5,562	15,252	Mirrors net assets; indicates shareholder value has declined significantly.

Additional Notes:

• The company employs only 1 person, consistent with micro-entity status—low overhead but limited operational scale.
• The company is still active and compliant with filing deadlines, which is a good governance sign.
• Ownership and control are fully concentrated with a single director, Mr. Owen David Hughes, which centralizes decision-making.

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3. Diagnosis: Financial Condition Overview

OH Camera Solutions Limited is in a fragile yet operational state. The company’s core vital signs—positive net current assets and positive equity—indicate it is not insolvent. However, the marked decline in working capital and net assets over one year is a symptom of underlying financial stress. This could be due to reduced revenues, increased costs, or asset impairments.

The healthy cash flow “pulse” appears to be weakening, as evidenced by:

• Falling current assets (likely cash or receivables)
• Rising short-term liabilities (creditors, accruals)
• Increased provisions signaling potential future outflows

These symptoms suggest the company might be experiencing tightening liquidity, possibly from operational challenges or investment demands. The micro size and single employee also imply limited capacity to absorb shocks.

In medical terms, the company’s financial health shows "early signs of distress" but without acute crisis. Without intervention, the risk of deteriorating into deeper financial trouble (e.g., inability to meet liabilities on time) is elevated.

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4. Recommendations: Improving Financial Wellness

a) Strengthen Liquidity Management

• Improve cash flow forecasting to anticipate short-term funding needs.
• Accelerate collections on receivables and negotiate extended payment terms with creditors.
• Maintain a cash buffer to avoid liquidity “arrhythmias.”

b) Control Costs and Expenses

• Review operating expenses and reduce non-essential costs to preserve working capital.
• Evaluate the provisions and accruals to ensure they are reasonable and not overly conservative.

c) Capital Injection or Financing

• Consider equity injection from the shareholder or external investors to rebuild net assets and shareholder funds.
• Explore short-term financing options if cash flow gaps persist, but cautiously to avoid over-leverage.

d) Operational Efficiency and Revenue Growth

• Focus on growing top-line revenues through new contracts or expanding services within the TV programming and broadcasting sector.
• Enhance operational efficiencies to improve margins and profitability.

e) Governance and Oversight

• Maintain rigorous compliance with filing deadlines and regulatory requirements to avoid penalties and reputational damage.
• Regular financial reviews and scenario planning to detect early warning signs.

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