BITEWORLD LTD

Executive Summary

Biteworld Ltd exhibits a high risk profile due to a significant decline in financial health over the most recent year, marked by a large negative working capital and net liabilities. While statutory filings are up to date and governance appears stable, the company’s liquidity and solvency position raise substantial concerns that warrant further investigation into cash flow and operational viability.

BITEWORLD LTD - Analysis Report

Company Number: 12565515

Analysis Date: 2025-07-20 12:23 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in financial position over the latest financial year, with net liabilities of £93,314 as of 30 April 2024, compared to net assets of £69,310 the previous year. This indicates a serious solvency risk, as liabilities exceed assets by a large margin.

2. Key Concerns:

• Severe Negative Net Current Assets: The company’s current liabilities (£111,910) are substantially higher than its current assets (£16,499), resulting in a negative working capital of £95,411. This suggests liquidity stress and potential difficulty meeting short-term obligations.
• Sharp Decline in Financial Health: The drastic change from positive net assets and working capital in 2023 to significant net liabilities and negative working capital in 2024 signals operational or financial distress.
• Limited Share Capital and Equity Cushion: The share capital is nominal (£1.00), and shareholder funds are deeply negative, indicating limited equity buffer to absorb losses or support financing.

3. Positive Indicators:

• No Overdue Filings: The company is current with its accounts and confirmation statement filings, suggesting compliance with statutory requirements.
• Stable Leadership and Control: The company has consistent directors and persons of significant control since incorporation, which may imply stable governance.
• Micro-Entity Reporting: Filing under micro-entity provisions reduces administrative burden and may suggest a smaller, more focused operation.

4. Due Diligence Notes:

• Examine Cash Flow Statements: To understand if the negative working capital is a temporary timing issue or indicative of ongoing cash flow problems.
• Review Recent Business Activities: Investigate reasons behind the sharp increase in liabilities and decline in assets—e.g., losses, increased borrowing, unpaid creditors.
• Assess Going Concern Status: Confirm whether directors have disclosed any going concern issues or plans to mitigate financial distress.
• Verify Operational Model and Revenue Streams: Given the SIC code (Other education not elsewhere classified), it is important to understand the company’s business model and revenue sustainability.
• Director and PSC Background Checks: Although no disqualifications are noted, verifying director reputations and any related party transactions is prudent.