CHOUDHURY GROUP LTD

Executive Summary

CHOUDHURY GROUP LTD is a newly established private company demonstrating strong foundational financial health with positive net assets and working capital. Early indicators suggest stable liquidity and prudent asset investment, though future success depends on effective cash flow management and revenue growth. Timely compliance and strategic planning will be key to maintaining and improving financial wellness.

CHOUDHURY GROUP LTD - Analysis Report

Company Number: 15612868

Analysis Date: 2025-07-29 16:09 UTC

Financial Health Assessment of CHOUDHURY GROUP LTD

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1. Financial Health Score: B

Explanation:
CHOUDHURY GROUP LTD shows strong early-stage financial health with positive net assets, a healthy working capital position, and no overdue filings. The score reflects a solid foundation typical for a new company but also acknowledges the limited operating history and modest asset base which temper the outlook.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	3,322	Modest investment in tangible assets, indicating initial setup phase (fixtures, equipment).
Current Assets	25,741	Healthy short-term resources including £8k cash and £17.7k debtors (amounts owed to company).
Current Liabilities	14,440	Short-term debts, reasonable relative to current assets, showing manageable near-term obligations.
Net Current Assets (Working Capital)	11,301	Positive working capital suggests the company can comfortably cover its short-term debts.
Net Assets (Equity)	14,623	Positive net worth, indicating assets exceed liabilities; important sign of financial robustness.
Share Capital	1	Minimal called-up share capital, typical for a start-up private company.
Profit & Loss Reserve	14,622	Retained earnings or accumulated profits, signaling initial profitability or capital injections.
Staff Costs	19,544	Operating cost for one employee, reflects lean operation.
Turnover	Not reported	No turnover disclosed; likely early trading phase.

Additional Context:

• The company is newly incorporated (April 2024) and has its first full accounting period ending April 2025.
• No audit requirement under small company exemption, typical for a micro/small entity.
• Directors believe in going concern status, reflecting management confidence.

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3. Diagnosis: What the Financial Data Reveals About Business Health

CHOUDHURY GROUP LTD is in the early stages of its business lifecycle, exhibiting the "vital signs" of a start-up with a stable and positive financial position. The company’s balance sheet shows a "healthy pulse" — positive net current assets and net equity indicate it can meet its short-term debts and has a cushion to absorb shocks.

The substantial proportion of current assets tied up in debtors (£17,711) suggests active trading with customers, but it also highlights a "potential symptom" of cash flow risk if collections slow down. The cash balance of £8,030 provides immediate liquidity, though modest.

The company has invested prudently in fixed assets (£3,322) to support operations but has not yet recorded turnover or profit figures publicly, so the "clinical picture" remains incomplete regarding revenue generation and profitability.

Staff costs are contained, with a single employee, which aligns with the company's size and suggests controlled operating expenses.

Overall, the financial "symptoms" suggest the company is in a stable, early operating phase without distress signs such as negative working capital or liabilities exceeding assets.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Enhance Cash Flow Monitoring: Given a large debtor balance relative to cash, implement robust credit control and collection processes to maintain healthy liquidity and avoid cash flow "blockages."
• Revenue Reporting: As turnover data is not disclosed, prioritize clear income tracking and reporting to provide stakeholders with visibility on trading performance.
• Build Capital Buffers: Consider strategies to increase equity or retained earnings through reinvested profits or shareholder funding to strengthen the balance sheet ("financial immune system").
• Plan for Growth: With positive working capital, cautiously invest in business development and marketing to convert early stability into sustainable revenue growth.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid "regulatory infections" such as penalties or reputational damage.
• Risk Management: Monitor industry and market trends aligned with SIC codes (management consultancy, property letting, professional services) and prepare contingency plans for potential disruptions.

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Summary

CHOUDHURY GROUP LTD exhibits healthy early-stage financial "vital signs" with positive net assets and working capital, indicating solid short-term financial stability. While still in its infancy with limited trading data, the company shows no signs of distress and holds promise for sustainable growth provided it manages cash flow effectively and builds on its initial capital base.