BIKES AND BITS BREAKERS LTD

Executive Summary

Bikes and Bits Breakers Ltd is a newly established micro-enterprise with a modest financial footprint and minimal liquidity buffers. While currently able to meet short-term liabilities, its limited operating history and low net assets warrant conditional credit approval with close monitoring of cash flow and trading progress. The directors’ active involvement and absence of adverse records support cautious optimism about management quality.

BIKES AND BITS BREAKERS LTD - Analysis Report

Company Number: 14780061

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

1. Credit Opinion: CONDITIONAL APPROVAL
   Bikes and Bits Breakers Ltd is a newly incorporated private limited company (since April 2023) operating in the retail trade of motor vehicle parts and accessories. The company has filed its first set of accounts for the year ending March 2024, showing a positive net asset position but a very modest working capital base. Given its early stage, limited financial history, and minimal net current assets (£175), credit approval should be conditional on further monitoring of trading performance, cash flow generation, and the directors' ability to sustain operations and service any debt. The presence of two directors with significant control and no adverse records is positive from a governance perspective.

2. Financial Strength:
   The balance sheet is very modest in scale: total shareholders’ funds of £175 consisting of £100 share capital and £75 retained profit. Current assets comprise only £2,827 cash, offset by current liabilities of £2,652, resulting in net current assets of £175. There are no fixed assets reported, indicating an asset-light business model. The company employs two people, which is consistent with a small micro-business profile. The minimal equity buffer and low liquidity limits financial resilience in the face of unexpected expenses or downturns.

3. Cash Flow Assessment:
   Cash at bank and in hand is £2,827 against current liabilities of £2,652, leaving a very tight working capital margin. This suggests the company can currently meet short-term obligations, but there is minimal headroom for delays in receivables or unexpected costs. The profit and loss reserve of £75 indicates some profitability or retained earnings from initial trading, but the scale is very small. Given the limited history and low cash buffers, liquidity risk is present and requires close management.

4. Monitoring Points:

• Quarterly cash flow updates to ensure the company maintains positive liquidity and meets ongoing liabilities.
• Turnover growth and profitability trends in subsequent filings to confirm business viability and scaling.
• Changes in debtor and creditor days to assess working capital management efficiency.
• Director conduct and changes in control or governance structure.
• Any material changes in liabilities or capital structure that impact financial flexibility.