CITRINE DIGITAL MARKETING SOLUTIONS LTD

Executive Summary

Citrine Digital Marketing Solutions Ltd operates with very limited financial resources and thin equity, reflecting fragile financial health. While it can meet short-term obligations currently, its declining net assets and reliance on director loans present credit risk. Conditional approval is recommended with strict monitoring of liquidity and financial trends.

CITRINE DIGITAL MARKETING SOLUTIONS LTD - Analysis Report

Company Number: 12803314

Analysis Date: 2025-07-20 16:10 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Citrine Digital Marketing Solutions Ltd shows minimal net assets (£19 as of August 2024) and a declining equity position over recent years, indicating very thin financial buffers. However, the company is current on filings and remains active with positive net current assets (£994), suggesting it can meet short-term liabilities presently. The small scale (Micro entity) and limited capital base warrant caution. Approval should be conditional on continued monitoring of liquidity and prompt repayment of director loans, as the company’s financial resilience is weak and equity erodes year-on-year.

2. Financial Strength:
   The balance sheet reveals very low net assets, declining from £1,417 in 2020 to just £19 in 2024. Current assets increased modestly from £5,447 in 2023 to £7,243 in 2024, matched by a rise in current liabilities from £4,503 to £6,249, keeping net current assets positive but minimal at £994. The presence of a director loan (£2,637) that was repaid post year-end indicates reliance on insider funding to support liquidity. Overall, the company’s financial strength is fragile, with minimal equity and no fixed assets reported, increasing vulnerability to adverse events.

3. Cash Flow Assessment:
   Working capital remains positive but tight, with a net current asset position of £994. The increase in current liabilities outpaces growth in current assets, limiting liquidity flexibility. The repayment of an interest-free director loan post year-end suggests short-term cash flow management challenges. No detailed cash flow statement is available, but the micro-entity status and small turnover likely constrain cash generation. The company should maintain close management of payables and receivables to avoid liquidity strain.

4. Monitoring Points:

• Net asset and equity trend: watch for further erosion or improvement.
• Director loans and related party transactions: monitor for dependency risks.
• Current ratio and net working capital: ensure continued positive liquidity position.
• Timely filing of accounts and confirmation statements to avoid compliance issues.
• Revenue and profit trends (when available) to assess operational sustainability.
• Any changes in management or ownership that could impact financial stewardship.