CHALTON STREET LTD

Executive Summary

Chalton Street Ltd is a start-up in the take-away food sector with weak financials after its first year, showing negative equity and working capital deficits. The company’s current liquidity and financial position are insufficient to support credit extension without significant improvements. Ongoing monitoring of cash flow, capital structure, and operational progress is essential before reconsidering credit facilities.

CHALTON STREET LTD - Analysis Report

Company Number: 15029986

Analysis Date: 2025-07-29 18:48 UTC

1. Credit Opinion: DECLINE
   Chalton Street Ltd is a newly incorporated entity (July 2023) with only one year of financial data available. The company shows net liabilities of £1,564 and negative shareholders’ funds (£-1,564) at its first year end, indicating an undercapitalized and loss-making position. Current liabilities exceed current assets, resulting in a negative working capital position (-£1,564), which raises concerns about short-term liquidity and the ability to meet obligations as they fall due. The sole director and 100% shareholder is a chef by occupation, with no indication of prior business or financial management experience. Given the very limited trading history, negative equity, and weak liquidity, the company’s capability to service debt or honor commercial agreements is highly uncertain at this stage.

2. Financial Strength:
   The balance sheet reflects a fragile financial structure with no fixed assets and very low current assets (£2,842 cash only) against current liabilities of £4,406. The company recorded a loss reflected in the negative profit and loss reserve (-£1,664). Share capital is minimal (£100), which provides very limited buffer against losses. The absence of any tangible or intangible assets further weakens the company’s net asset position. Overall, the financial strength is poor and not supportive of extending credit without significant improvement.

3. Cash Flow Assessment:
   Cash reserves are minimal at £2,842, and current liabilities exceed this amount. The negative net current assets of -£1,564 indicate a working capital deficit, suggesting the company might struggle to fund day-to-day operations or meet short-term liabilities without additional capital injection or credit support. No detailed cash flow statement is provided, but the balance sheet position signals tight liquidity and potential cash flow difficulties.

4. Monitoring Points:

• Track monthly cash flow and working capital trends to detect improvements or deterioration.
• Monitor any capital injections or external financing to bolster liquidity and equity.
• Review turnover and profitability development in subsequent periods to assess business viability.
• Watch for timely filing of accounts and confirmation statements to ensure regulatory compliance.
• Assess any changes in management or operational strategy that could impact financial performance.