CITRIS LIMITED

Executive Summary

CITRIS LIMITED currently exhibits significant financial stress, with increasing net liabilities and a liquidity shortfall that pose solvency risks. While regulatory filings are up to date and the business operates in a viable sector, the limited capitalization and worsening financial position warrant careful scrutiny. Further investigation into cash flow and management strategies is essential before considering investment.

CITRIS LIMITED - Analysis Report

Company Number: 13166416

Analysis Date: 2025-07-20 13:41 UTC

1. Risk Rating: HIGH
   The company shows a persistent and worsening negative net asset position, indicating insolvency risk. Current liabilities significantly exceed current assets, demonstrating liquidity concerns. The company’s micro-entity status and minimal share capital (£1.00) further emphasize limited financial buffer.

2. Key Concerns:

• Negative net assets: The latest accounts show net liabilities of £28,922, deteriorated from £12,785 the previous year, signaling financial distress.
• Liquidity mismatch: Current liabilities (£37,083) far exceed current assets (£8,161), raising questions about ability to meet short-term obligations.
• Limited capitalization and operational scale: Share capital is minimal, and the company reports only one employee, suggesting constrained operational capacity and limited financial resilience.

3. Positive Indicators:

• Compliance: The company is current on its accounts and confirmation statement filings, indicating regulatory compliance and governance discipline.
• Active status with experienced directors: The board includes multiple directors with consistent appointments, potentially providing operational oversight.
• Business sector: Engaged in IT-related activities (data processing, software development, consultancy) which generally have scalable and potentially profitable business models.

4. Due Diligence Notes:

• Investigate the cause of the worsening net liabilities and whether these relate to accumulated losses, unpaid creditors, or accounting adjustments.
• Review cash flow statements or management accounts (not provided) to assess operational cash generation and short-term liquidity management.
• Evaluate director and shareholder support or plans for capital injection or restructuring to address solvency issues.
• Confirm whether the reported net liabilities impact ongoing trading capability or creditor relationships.
• Clarify the nature of liabilities due within one year and whether any are overdue or disputed.