NETRICUS LIMITED

Executive Summary

NETRICUS LIMITED, a newly established IT consultancy, is currently showing early financial stress indicated by negative working capital and equity. While these are typical startup challenges, urgent attention to cash flow management and capital strengthening is recommended to ensure healthy financial recovery and growth. With prudent management, the company’s financial outlook can improve as it gains operational traction.

NETRICUS LIMITED - Analysis Report

Company Number: 15259403

Analysis Date: 2025-07-20 19:08 UTC

Financial Health Assessment for NETRICUS LIMITED

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1. Financial Health Score: D

Explanation:
As a newly incorporated company with less than a full year of trading, NETRICUS LIMITED shows early signs of financial strain. The negative net current assets and shareholders' funds indicate initial liquidity and equity challenges. However, given the company's infancy and limited trading history, this grade reflects a cautionary stance rather than severe distress.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£2,677	Very low level, comprising mainly debtors (£2,520) and minimal cash (£157).
Cash on Hand	£157	Critically low cash reserves — “weak pulse” for day-to-day operations.
Current Liabilities	£2,728	Slightly exceeds current assets, creating a small working capital deficit.
Net Current Assets	-£51	Negative working capital; indicates possible short-term liquidity stress.
Shareholders’ Funds	-£53	Negative equity; company has incurred losses or started with low capital — “symptom of imbalance.”
Turnover	Not disclosed	Limited data as trading commenced less than a year ago.
Employees	1	Micro enterprise scale, which limits operational capacity but reduces overhead risk.

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3. Diagnosis

NETRICUS LIMITED is in the nascent stage of its corporate life, having commenced trading only in April 2024. The financial "vital signs" reveal:

• Liquidity Stress: Cash reserves are critically low (£157), and current liabilities slightly exceed current assets, suggesting that the company may face difficulty meeting immediate obligations if the inflows are not timely. This is akin to a patient with a weak heartbeat requiring careful monitoring.

• Negative Equity: The negative shareholders’ funds (-£53) reflect accumulated losses or minimal initial capital injection. While not alarming for a startup, this is a signal that the company needs to build reserves through profitability or additional capital.

• Trade Debtors Concentration: Almost all current assets are tied up in trade debtors (£2,520), indicating that the company is awaiting cash inflows. If collections are delayed, this could worsen liquidity.

• Small Scale and Limited Data: With only one employee and a short trading period, the company’s financial footprint is small. This means risks are concentrated, but also that operational and financial complexity is low.

Overall, the company is in an early "convalescent" phase of financial health—still vulnerable but with potential to strengthen if managed prudently.

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4. Recommendations

To improve financial wellness and avoid symptoms of distress worsening, consider the following actions:

1. Enhance Cash Management
   Prioritize collection of trade debtors to improve cash flow. Consider offering early payment incentives or tightening credit terms to reduce debtor days.

2. Boost Cash Reserves
   Explore options for additional capital injection from shareholders or short-term financing facilities to build a healthy cash buffer and prevent liquidity crises.

3. Monitor and Control Expenses
   Keep overheads minimal given single-employee status; avoid unnecessary expenditures until stronger financial footing is established.

4. Develop a Robust Sales Pipeline
   Accelerate turnover growth to convert early losses and negative equity into profits. Early revenue growth is critical for startups to stabilize financial health.

5. Regular Financial Reviews
   Conduct monthly cash flow forecasts and financial reviews to catch symptoms of financial distress early and adapt strategies swiftly.

6. Seek Professional Advice
   Engage accountants or business advisors to assist in financial planning and compliance, especially given the small company exemption and limited internal resources.

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