CAMS FIRE & SECURITY PLC

Risk Rating: MEDIUM

The company is solvent on a balance sheet basis and remains compliant with statutory filing obligations. However, cash reserves are minimal relative to total liabilities, recent turnover is not disclosed in the available data, and the strategic report acknowledges weaker construction demand and heightened customer insolvency risk. These factors constrain near-term payment capacity despite positive net assets.

Key Concerns

1. Critically low liquidity. Cash of £120 at both 31 March 2025 and 31 March 2026 stands against total liabilities of £781,358. Unless current assets such as debtors are readily collectible, the company has very limited immediate cash to meet obligations as they fall due.
2. Absence of recent turnover data. Turnover is reported only for 2021 and 2022 (approximately £2.4m in each year). No turnover figure is provided for 2023–2026, making it difficult to assess revenue trends or cash generation during the period in which cash reserves collapsed from £172,823 (2024) to £120 (2025–2026).
3. Balance sheet deterioration and market headwinds. Net assets have declined from £477,844 (2021) to £375,038 (2026), while total liabilities have risen from £381,088 (2020) to £781,358 (2026). The strategic report states that construction work has fallen and that there is a higher general risk of customers entering liquidation.

Positive Indicators

1. Positive equity position. Net assets and shareholders’ funds of £375,038 indicate the company is not balance-sheet insolvent.
2. Regulatory compliance. Accounts and confirmation statement filings are current and not overdue; the company remains active with no insolvency proceedings.
3. Established operating history. Incorporated in 1984, the business reports a long-standing customer base and third-party certifications for fire and security systems.
4. No formal insolvency process. The company is not in liquidation, administration, or receivership.

Due Diligence Notes

1. Obtain a detailed balance sheet split between fixed assets, current assets (debtors, stock, cash) and current liabilities to assess working capital and short-term coverage.
2. Request management accounts or full filed accounts with turnover for 2023–2026 to establish revenue trends and explain the absence of turnover in the provided summary.
3. Review aged debtor and creditor listings to evaluate collectability and payment pressures.
4. Clarify banking facilities, overdrafts, and any related-party funding, given the concentrated ownership among persons with significant control.
5. Confirm whether the PLC’s allotted share capital of £50,000 is fully paid and whether any contingent liabilities exist.