BIXBITE RG LTD

Executive Summary

Bixbite RG Ltd shows significant solvency and liquidity risks due to persistent losses and negative equity, relying on group support for ongoing operations. The company maintains good regulatory compliance and stable leadership, but financial sustainability remains a concern. Additional investigation into cash flows, creditor profiles, and group backing is recommended before considering investment.

BIXBITE RG LTD - Analysis Report

Company Number: 12949285

Analysis Date: 2025-07-29 15:03 UTC

1. Risk Rating: HIGH
   Bixbite RG Ltd exhibits significant financial stress as evidenced by large net liabilities and negative working capital, indicating a high risk of insolvency without external support.

2. Key Concerns:

• Net Liabilities and Negative Equity: The company reported net liabilities of £179,792 as at 31 December 2022, worsening from £106,054 the prior year, reflecting accumulated losses and eroded shareholder funds.
• Negative Net Current Assets: Current liabilities (£471,018) substantially exceed current assets (£83,273), resulting in a net current liability position of £387,745, suggesting liquidity constraints and potential difficulties in meeting short-term obligations.
• Dependence on Group Support: The director’s going concern note explicitly states the company continues operations due to group support, implying the business is not self-sustaining at present and reliant on external financial backing.

3. Positive Indicators:

• Timely Filing and Compliance: Accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance and governance practices.
• Stable Directorship and Ownership: The sole director and principal shareholder, Mr. Kieran Charles Rabbitt, has been in place since incorporation, indicating stable leadership. Additionally, control by a corporate entity (Zcg Limited) may provide structural support.
• Growth in Staff Numbers: The increase from 1 employee in 2021 to 26 in 2022 could indicate business expansion efforts, although this must be balanced against financial strain.

4. Due Diligence Notes:

• Examine Cash Flow Statements: Review detailed cash flow data to understand the timing and magnitude of cash inflows and outflows, particularly operating cash flows, to assess liquidity risk further.
• Group Support Details: Clarify the nature, extent, and terms of the group support mentioned by the director to evaluate sustainability and risk of withdrawal.
• Profit and Loss Trends: Obtain recent profit and loss accounts to analyze revenue trends, gross margins, and expense drivers that contribute to the accumulated losses.
• Lease Obligations and Creditors: Investigate the composition and maturity profile of creditors, including any operating lease commitments, to assess near-term liabilities and potential refinancing needs.
• Asset Valuation and Impairments: Verify the carrying amounts and valuation methods for tangible fixed assets (£315,371) considering the negative equity position, to check for possible impairment risks.

Executive Summary:
Bixbite RG Ltd is currently in a financially vulnerable position with substantial net liabilities and negative working capital, reliant on group support to continue as a going concern. While regulatory compliance and stable ownership are positive factors, the company’s liquidity and operational sustainability raise significant concerns for investors. Further due diligence is necessary to assess cash flow dynamics and the reliability of external support.