BYL SOLUTIONS LIMITED

Executive Summary

BYL SOLUTIONS LIMITED is a recently incorporated company operating in data processing services with negative net assets and a working capital deficit as at March 2024. The business currently depends heavily on an interest-free director loan for liquidity, reflecting high solvency risk. Despite compliance with filing requirements and group ownership, the company’s financial position and limited operating history suggest a high risk profile requiring careful due diligence.

BYL SOLUTIONS LIMITED - Analysis Report

Company Number: 14417171

Analysis Date: 2025-07-29 18:38 UTC

1. Risk Rating: HIGH
   BYL SOLUTIONS LIMITED shows significant solvency and liquidity challenges, evidenced by negative net assets and net current liabilities. The company is in its first financial period and relies heavily on director loans, indicating financial instability.

2. Key Concerns:

• Negative Net Assets and Net Current Liabilities: The balance sheet as of 31 March 2024 reveals net liabilities of £2,333 and a working capital deficit of £10,194, signaling that current liabilities exceed current assets.
• Reliance on Director Loan: £42,312 of the company's creditors is an interest-free, on-demand loan from the director, representing substantial dependency on this funding for operational liquidity.
• Limited Operating History with Losses: Being incorporated in October 2022 and reporting a loss in the first period highlights early-stage operational risks and the uncertainty of sustainable revenue generation.

3. Positive Indicators:

• Compliance with Filing Requirements: The company has filed accounts and confirmation statements on time, indicating adherence to statutory obligations.
• Clear Ownership Structure: 100% ownership by BYL Connect Limited provides a defined control and potential access to group support.
• Modest Fixed Assets Base: Tangible assets including long-term leasehold property (£7,861 net book value) provide some asset backing.

4. Due Diligence Notes:

• Investigate Director Support: Confirm the extent, terms, and sustainability of the director loan, and any plans for future funding support or capital injection from the parent company.
• Review Business Model and Revenue Streams: Assess the company's commercial viability in data processing and hosting services given the initial losses and limited turnover information.
• Examine Financial Projections and Cash Flow Forecasts: Evaluate management’s forecasts and plans to return to profitability and positive working capital status.
• Verify Commitments and Contingencies: The company has £76,500 in total commitments as at the balance sheet date; clarity is required on the nature and timing of these obligations.

Overall, BYL SOLUTIONS LIMITED is an early-stage company with negative equity and working capital deficits, underpinned by director funding. While statutory compliance is current and group ownership may provide some support, the financial position presents a high risk profile. Close scrutiny of funding arrangements and operational progress is essential for investment consideration.