Company Number: 14310531

Analysis Date: 2025-07-20 17:09 UTC

Financial Health Assessment for BYTIO LIMITED (as of 31 August 2024)

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1. Financial Health Score: D

Explanation:
BYTIO LIMITED shows clear symptoms of financial distress. The company’s net liabilities position, negative shareholders’ funds, and a growing deficit over the last two years indicate unhealthy financial "vital signs". While it remains active and compliant with filings, the balance sheet reveals a company struggling with liquidity and solvency, meriting a low grade.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	16,257	8,787	Modest increase indicating some investment in long-term assets, but very small scale.
Current Assets	67,169	37,126	Increased cash or receivables, which is positive, but still low relative to liabilities.
Current Liabilities	355,261	166,940	Substantial increase, indicating rising short-term debts; a red flag for liquidity.
Net Current Assets	(285,255)	(128,688)	Deepening working capital deficit, suggesting cash flow is severely constrained.
Shareholders Funds	(270,748)	(121,651)	Negative equity, worsening significantly, indicative of accumulated losses and insolvency risk.
Employees	1	1	Micro entity size, minimal staff, typical for a start-up or early-stage business.

Interpretation:

• The net current liabilities ("working capital") are deeply negative, meaning the company owes significantly more short-term than it holds in liquid assets. This is akin to a patient with dangerously low blood pressure—insufficient funds to meet immediate obligations.
• The shareholders funds are negative and worsening, which is a symptom of persistent losses or financial stress, threatening the company’s solvency.
• Despite increased current assets, the surge in current liabilities outpaces them, intensifying liquidity risk.

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3. Diagnosis

BYTIO LIMITED appears to be in a fragile financial state. The company is a micro-sized private limited entity operating in business and domestic software development—a competitive sector that often requires upfront investment and patience before profitability.

The financial "symptoms" are:

• Liquidity distress: Current liabilities more than 5 times current assets, signaling potential difficulties in meeting short-term debts when they fall due.
• Negative net assets: The company’s liabilities exceed its assets, meaning it is technically insolvent on a balance sheet basis. This could restrict its ability to raise further finance or secure credit.
• No income statement provided: Lack of detailed profit/loss information limits full diagnosis, but the deteriorating equity suggests ongoing operating losses or significant expenses.
• Single employee (the director): Likely an early-stage venture with limited operational scale, which could explain some financial strain as the business invests in development.

These signs suggest BYTIO LIMITED is currently in a critical phase, analogous to a patient with chronic illness requiring immediate intervention to prevent further decline.

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4. Recommendations

To improve financial wellness and stabilize the company, the following steps are advised:

1. Improve Liquidity Management:

   • Negotiate longer payment terms with creditors to reduce immediate cash outflows.
   • Accelerate collection of receivables or convert assets into cash where possible.

2. Capital Injection:

   • Consider equity investment or shareholder loans to shore up negative equity and provide working capital buffer.
   • Engage with the sole shareholder (director) to explore funding options.

3. Cost Control and Revenue Generation:

   • Review all operating expenses critically and cut non-essential spending.
   • Focus on accelerating sales or contracts to improve cash inflows.

4. Financial Reporting and Transparency:

   • Prepare and review detailed profit and loss statements to identify loss drivers.
   • Engage professional financial advice for cash flow forecasting and financial planning.

5. Plan for Insolvency Contingencies:

   • Although not currently in liquidation or administration, monitor cash flow carefully to avoid legal insolvency.
   • Early consultation with insolvency practitioners may help assess turnaround options.

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