CHOMWENYE ASSOCIATES LIMITED

Executive Summary

CHOMWENYE ASSOCIATES LIMITED exhibits strong liquidity and positive equity indicative of good financial health for a new small business. While operational capacity is currently limited, the company is well-positioned to develop and grow with careful management of cash flow and strategic expansion. Continued financial oversight and investment in resources will be key to sustaining this healthy start.

CHOMWENYE ASSOCIATES LIMITED - Analysis Report

Company Number: 14557646

Analysis Date: 2025-07-29 20:52 UTC

Financial Health Assessment of CHOMWENYE ASSOCIATES LIMITED

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1. Financial Health Score: B

Explanation:
The company shows a solid liquidity position with healthy net current assets and positive shareholders’ funds. As a newly incorporated small private limited company operating in the health sector, it demonstrates good initial financial stability. However, the absence of employees and limited trading history indicates it is still in an early growth phase, requiring careful monitoring to maintain momentum. The score "B" reflects a financially sound but developing business with room to strengthen operational capacity and profitability.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£22,432	Adequate short-term resources to cover liabilities; primarily held as cash (£21,532).
Current Liabilities	£4,472	Low short-term obligations relative to assets; manageable creditor pressure.
Net Current Assets	£17,960	Positive working capital; the company can comfortably meet immediate debts—"healthy cash flow".
Net Assets	£17,960	Positive equity indicating the company’s assets exceed liabilities, a sign of financial strength.
Shareholders’ Funds	£17,960	Reflects owners’ invested capital plus retained profits; stable foundation for future growth.
Debtors	£900	Modest receivables suggest limited sales volume but prompt collections.
Employees	0	No employees during the year; indicates reliance on directors or outsourcing.

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3. Diagnosis

Underlying Health:
CHOMWENYE ASSOCIATES LIMITED presents "symptoms of financial wellness" typical for a startup or newly formed company. The substantial cash reserve relative to liabilities indicates cautious financial management and good liquidity. The absence of employees and modest debtor balance suggests minimal operational activity or outsourcing of services, consistent with early-stage business development.

Potential Concerns:

• Limited trading history means the company has yet to develop significant revenues or operational scale.
• Reliance on directors (both nurses by profession) without employees may limit capacity for growth or diversification.
• No audit requirement due to small size, but this lessens external financial scrutiny.

Overall, the company is in a stable state with no immediate signs of financial distress. The "net assets" and "working capital" are healthy, suggesting there are no symptoms of liquidity strain or insolvency risk at present.

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4. Recommendations

To strengthen financial wellness and support growth, consider the following:

1. Develop Operational Capacity:

   • Evaluate hiring or contracting additional personnel to expand service delivery and revenue generation.
   • Consider investing in marketing or business development to increase client base and debtors turnover.

2. Monitor Cash Flow Regularly:

   • Maintain the strong liquidity position by managing expenses carefully and ensuring timely collection of receivables.
   • Establish cash flow forecasts to anticipate funding needs or investment opportunities.

3. Financial Reporting and Controls:

   • Although audit is not mandatory, consider voluntary financial reviews to identify efficiencies and risks early.
   • Implement robust bookkeeping and accounting practices to ensure compliance and accurate financial insights.

4. Strategic Planning:

   • Set clear business goals and financial targets as the company grows beyond the startup phase.
   • Explore diversification within the human health sector or related services to build resilience.

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