BYTES COMPUTERS LIMITED

Executive Summary

Bytes Computers Limited is financially stable with improving net assets and strong liquidity, supporting its ability to meet obligations. The company’s growth trajectory and solid working capital position underpin a low credit risk profile for modest credit facilities. Continued monitoring of liquidity and profitability metrics is recommended to maintain credit quality.

BYTES COMPUTERS LIMITED - Analysis Report

Company Number: 12446647

Analysis Date: 2025-07-20 19:17 UTC

1. Credit Opinion: APPROVE
   Bytes Computers Limited demonstrates a stable and improving financial position with positive net assets and increasing equity over the last five financial years. The company operates in a niche IT repair sector with modest scale but consistent asset growth and sound working capital. There is no indication of financial distress or overdue filings, and directors appear stable. Given the micro-entity status and relatively small scale, credit exposure should be modest and monitored, but overall credit risk appears low.

2. Financial Strength:
   The company’s net assets have increased from approximately £43.4k in 2020 to £69.6k in 2024, reflecting retained earnings accumulation and asset growth. Fixed assets increased notably in 2024, enhancing the asset base. Current assets exceed current liabilities by a healthy margin (£40.5k net working capital in 2024), indicating short-term solvency. There is a small long-term creditor balance (£850), which is manageable. Shareholders’ funds fully cover liabilities, evidencing a strong equity buffer.

3. Cash Flow Assessment:
   Current assets of £68k against current liabilities of £27.5k yield a current ratio of about 2.5, showing good liquidity to cover short-term obligations. The company’s working capital improved year-on-year, supporting operational needs. The modest scale and micro classification limit detailed cash flow visibility, but the positive net current assets and growth in current assets suggest manageable cash flows and no immediate liquidity concerns.

4. Monitoring Points:

• Maintain vigilance on working capital trends and any increase in liabilities that could strain liquidity.
• Monitor profitability and cash generation as the company grows to ensure continued equity buildup.
• Watch for any changes in director appointments or PSC disclosures that may affect governance.
• Assess impact of market conditions on IT repair demand and customer payment patterns.