XBYTES LTD

Executive Summary

XBYTES LTD demonstrates a solid and improving financial position with strong liquidity and net asset growth, indicative of prudent financial management and operational stability for a micro-entity. While the company benefits from healthy working capital and minimal liabilities, opportunities exist to enhance scalability and profitability transparency to support sustainable growth.

XBYTES LTD - Analysis Report

Company Number: 13155566

Analysis Date: 2025-07-20 17:49 UTC

Financial Health Assessment for XBYTES LTD

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1. Financial Health Score: B

Explanation:
XBYTES LTD shows generally sound financial health with solid net asset growth and positive working capital, indicating "healthy cash flow" and operational stability typical for a micro-entity in its growth phase. However, some inconsistency in liabilities and asset management, along with zero employees and modest fixed assets, suggest the company is still in early development and has room for improvement in operational scale and financial robustness.

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2. Key Vital Signs

Metric	2025 (£)	2024 (£)	Interpretation
Fixed Assets	6,634	3,096	Moderate growth in long-term assets, indicating some reinvestment or capital acquisition.
Current Assets	8,229	2,714	Increased short-term resources, improving liquidity and operational flexibility.
Current Liabilities	1,979	2,913	Reduction in short-term debts, lowering financial strain and improving working capital.
Net Current Assets	6,250	(199)	Strong positive working capital in 2025 (current assets exceed liabilities), a key "heartbeat" of liquidity.
Total Assets Less Current Liabilities	12,884	5,810	Significant increase, reflecting improved net asset base and financial strength.
Creditors after 1 year	0	2,913	Eliminated long-term liabilities in 2025, reducing long-term financial burden.
Net Assets	12,484	2,497	Net equity has increased fivefold, signaling retained earnings or capital injection.
Share Capital	1.00	1.00	Minimal share capital, typical for a micro private company.
Employees	0	0	No employees, indicates reliance on director/outsourcing or early-stage business model.

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3. Diagnosis

XBYTES LTD exhibits the "symptoms of a growing enterprise" with marked improvements in liquidity and solvency metrics. The substantial increase in net current assets and elimination of long-term creditors from 2024 to 2025 suggest effective debt management and a strengthened balance sheet. The company's micro-entity status and zero employee count imply a lean operation, possibly with the director or contractors undertaking the core business activities.

The low share capital combined with relatively high net assets indicates that retained earnings or other reserves are the primary source of equity, which is a positive sign of operational profitability or capital contributions.

However, the absence of a profit and loss account in publicly available filings limits the ability to evaluate profitability trends directly. The company also does not have employees, which may constrain scalability but reduces payroll liabilities.

The growth in fixed assets and current assets, alongside decreased liabilities, signals a "healthy cash flow" and sound financial management, but the company remains vulnerable to external shocks due to its small size and limited operational scale.

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4. Recommendations

• Maintain Positive Working Capital: Continue to monitor current asset and liability levels to ensure liquidity remains strong, supporting day-to-day operations without stress.
• Profit & Loss Transparency: Although exempt as a micro-entity, consider maintaining internal profitability reports to track operational performance and guide strategic decisions.
• Build Employee or Contractor Capacity: To avoid operational bottlenecks and increase growth potential, evaluate hiring or formalizing contractor relationships.
• Strengthen Capital Base: Explore options for increasing share capital or attracting investment to support expansion and absorb unforeseen expenses.
• Debt Management: Continue to avoid or minimize long-term liabilities to maintain financial flexibility.
• Risk Management: Develop contingency plans for operational risks given the company’s small size and reliance on limited personnel.
• Strategic Growth Planning: Use improved asset base and cash position to invest in technology, marketing, or product development aligned with IT consultancy and software development, the company’s SIC-coded activities.

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