CHOWDHURY & SONS LTD

Executive Summary

Chowdhury & Sons Ltd is a very small, newly established take-away food business with minimal financial resources and no clear profitability to date. The company’s balance sheet shows nominal net assets and no liquidity cushion, leading to a high credit risk profile. Consequently, credit facilities are not recommended at this stage without significant financial improvement or additional security.

CHOWDHURY & SONS LTD - Analysis Report

Company Number: 14120896

Analysis Date: 2025-07-29 17:16 UTC

1. Credit Opinion: DECLINE
   Chowdhury & Sons Ltd is a very young company (incorporated in 2022) operating in the take-away food sector. The latest filed accounts show only minimal net assets (£100) and no significant current assets or working capital. The company’s financial position is extremely weak with negligible equity base and no evidence of profitability or cash generation. Given the absence of any substantial financial strength or operational scale, the risk of default on credit facilities is high. Furthermore, the company employs only one person and has limited tangible assets, indicating limited operational resilience. The management team is new with a recent director change, which adds to uncertainty. Overall, the company is not presently creditworthy for lending facilities beyond minimal unsecured exposures.

2. Financial Strength:
   The balance sheet as of 31 May 2024 shows net assets of just £100, representing only the cost of intangible fixed assets (goodwill). There are no reported tangible fixed assets or net current assets, indicating minimal operational scale. Shareholders’ funds have improved slightly from a negative £4,150 the previous year but remain negligible. The company is classified as a small entity with only one employee and has no disclosed borrowings or provisions, which may suggest low activity or early-stage operations. However, the lack of cash or working capital and the low equity base indicate very limited financial buffer to absorb shocks.

3. Cash Flow Assessment:
   No detailed profit and loss or cash flow statements are available, but the net current assets have moved from £3,296 (positive) in 2023 to presumably zero or negative in 2024 (not explicitly stated but net current assets are not reported in 2024 accounts). This suggests working capital constraints or limited liquidity. The company’s turnover and profitability cannot be assessed due to lack of disclosure. Given the small scale and minimal assets, liquidity risk remains very high. The absence of cash reserves or significant current assets suggests the company would struggle to meet short-term obligations or service any debt.

4. Monitoring Points:

• Monitor upcoming financial statements for evidence of revenue growth, profitability, and positive cash flows.
• Track changes in net current assets and working capital to assess liquidity trends.
• Watch for any director or ownership changes that could impact governance and financial management.
• Assess any related party transactions or capital injections that might improve financial position.
• Review credit utilization and payment behaviour if any credit facilities are granted.