BIO-WORLD PRODUCTS LTD

Executive Summary

BIO-WORLD PRODUCTS LTD is a newly established micro-entity currently exhibiting financial stress with negative working capital and net assets. While standard for startups, these "symptoms" indicate a fragile financial condition requiring urgent liquidity improvements and capital strengthening. Proactive management and strategic funding are essential to stabilize and enhance future financial health.

BIO-WORLD PRODUCTS LTD - Analysis Report

Company Number: 14739626

Analysis Date: 2025-07-29 12:56 UTC

Financial Health Assessment of BIO-WORLD PRODUCTS LTD

---

1. Financial Health Score: D

Explanation:
The company is newly incorporated (2023) and operates as a micro-entity. The financial statements show negative net current assets and net assets, indicating a liquidity and capital deficiency. While this is common in early-stage startups, the current financial position shows symptoms of financial distress that require close monitoring and active management.

---

2. Key Vital Signs:

Metric	Value (£)	Interpretation
Fixed Assets	6,384	Small investment in long-term assets, typical for a startup.
Current Assets	20,002	Cash, stock, and receivables available within a year.
Current Liabilities	31,162	Short-term debts due within a year, higher than current assets.
Net Current Assets (Working Capital)	-11,160	Negative working capital indicates potential liquidity problems.
Total Assets Less Current Liabilities	-4,776	Indicates liabilities exceed assets, a sign of financial stress.
Net Assets (Shareholders’ Funds)	-4,776	Negative equity means the company is technically insolvent.
Employees	0	No staff employed, possibly outsourcing or early phase setup.

Interpretation:

• The negative net current assets (working capital) is a key "symptom" that indicates the company may struggle to meet short-term obligations from its current asset base, akin to a patient with poor blood circulation risking oxygen deficiency in tissues.
• Negative net assets (shareholders’ funds) suggest that the company’s liabilities exceed its assets, similar to a heart under strain with insufficient capacity to sustain normal function.
• Lack of employees could mean low operational costs but may also reflect limited capacity to generate revenue currently.

---

3. Diagnosis:

BIO-WORLD PRODUCTS LTD is a very young micro-entity company that is currently facing liquidity and solvency challenges. The financial "symptoms" of negative working capital and negative net assets highlight a business that is in its fragile early stage or possibly under financial stress. The company has no employees, which may reduce fixed overheads but also suggests limited operational activity or reliance on external contractors.

The absence of overdue filings is a positive sign, showing compliance and orderly governance. However, the financial position indicates the company is relying on external funding or shareholder loans to sustain operations, which is common for startups but must be carefully managed to avoid worsening financial health.

---

4. Recommendations:

• Improve Liquidity: Seek to increase current assets through cash injections, better debtor collections, or inventory management to reverse negative working capital. Think of this as stabilizing the patient’s blood pressure to improve circulation.
• Cost Control: Minimise non-essential spending and consider lean operational models until revenue streams strengthen.
• Funding Strategy: Consider raising equity or long-term debt to improve the capital base and reduce reliance on short-term liabilities, similar to strengthening the patient’s immune system for longer-term health.
• Revenue Generation: Accelerate sales and marketing efforts in the retail and manufacturing sectors aligned with SIC codes 47990 and 32990 to generate sustainable cash flow.
• Regular Monitoring: Implement monthly financial reviews to detect early warning signs of distress and adjust business plans accordingly.
• Seek Professional Advice: Engage with financial advisors or mentors experienced in startup financing to plan a turnaround strategy.

---