TIDY BITES LIMITED

Executive Summary

TIDY BITES LIMITED presents a modest financial profile with limited fixed assets and low equity but maintains compliance with filing obligations and shows some profit retention. The company’s liquidity is tight, heavily supported by director loans, which poses a moderate risk to solvency. Further analysis into cash flows and related party funding arrangements is advised to fully assess financial stability.

TIDY BITES LIMITED - Analysis Report

Company Number: 12521104

Analysis Date: 2025-07-20 17:27 UTC

1. Risk Rating: MEDIUM
   TIDY BITES LIMITED shows modest net assets and positive but small net current assets as of the latest accounts. Whilst there are no overdue filings or insolvency indications, the company’s limited fixed assets and small equity base, combined with a high director’s loan balance, introduce moderate solvency and liquidity concerns for an investor.

2. Key Concerns:

• Liquidity position: Current assets marginally exceed current liabilities by only £145 as of 2023, following a negative net current asset position in previous years, suggesting tight working capital.
• Director’s loan account reliance: The significant and increasing director’s loan (£1,766) is unsecured, interest-free, and repayable on demand, indicating dependence on related party funding for operational liquidity.
• Modest equity and asset base: Shareholders’ funds remain low (£495 in 2023) with minimal fixed assets (£350), which may limit the company’s ability to absorb financial shocks or invest for growth.

3. Positive Indicators:

• Timely and compliant filings: Accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance.
• Stable operational workforce: The company maintained an average of 6 employees during 2023, consistent with prior years, indicating operational continuity.
• Profit accumulation: The profit and loss reserve increased from £331 to £395, evidencing retained earnings growth and some level of profitability.

4. Due Diligence Notes:

• Review detailed cash flow statements and bank reconciliations to assess actual liquidity beyond balance sheet snapshots.
• Investigate the nature and terms of the director’s loan account, including any plans for repayment or conversion into equity.
• Obtain management commentary on future business prospects and strategies to improve working capital and asset base.
• Confirm no undisclosed contingent liabilities or off-balance sheet obligations exist.
• Examine turnover and profitability trends given the small asset base and the industry sector (take-away food and café operations) which can be sensitive to market conditions.