YELLOW ROSE TRADING

YELLOW ROSE TRADING LIMITED is a fast-growing wholesale supplier of fruit and vegetable juices, mineral water, soft drinks and frozen chicken products for pizza and fast food businesses. We provide high-quality, affordable and reliable products that are in constant demand. The fast food industry continues to expand creating a huge market opportunity for essential supplies like beverages and frozen food. With our strong customer base, efficient supply chain and reliable sourcing we are positioned for long-term success and profitability.

Our business model is scalable and growth-driven, with plans to expand inventory, improve logistics, and reach new markets. We aim to enhance our storage facilities and distribution network, ensuring timely deliveries and increased operational efficiency. By strengthening our supply chain we can serve more businesses, boost revenue and maximize profitability.

Beyond growth, we are committed to sustainability and responsible sourcing. We prioritise eco-friendly packaging and ethical partnerships, aligning with industry trends and customer expectations. As we scale we will continue to optimise efficiency, maintain product quality and explore new business opportunities to strengthen our market position. With consistent demand, a high-growth industry, and a clear expansion strategy, YELLOW ROSE TRADING LIMITED offers a strong and secure investment opportunity. Investors will benefit from stable returns, business growth, and long-term success. Join us today and be part of a thriving business with a bright future.

Credit Commentary:
Yellow Rose Trading, located in Ilford, is primarily engaged in the wholesale distribution of beverages, frozen meat products, and packaging solutions to food service businesses and fast-food restaurants. The company was incorporated in July 2021. The name of the company was changed from Marshband Limited to Yellow Rose Trading Limited in May 2022. The director and sole shareholder of the business, Sajjad Ahmad Chaudhary, is providing a personal guarantee, which means should the company fail to repay the loan, we can turn to the guarantor to cover any shortfall. Looking at the financials, the turnover jumped to £606K (FY 2023: £246K), resulting in an Operating profit of £150K (FY 2023: £35K) for FY2024 (Year Ended July). Over time, the business has built strong client relationships and generated revenue primarily through networking and word-of-mouth referrals. For 5M FY2025, the company generated revenue of £371K and an Operating Profit of £39K. The business is looking for funds to transition from a very basic warehouse (currently located in Barking) to a larger warehouse equipped with the latest technology and increased storage and refrigeration capacity. The EBITDA of the company is sufficient to cover the proposed loan facility. In addition, the company will be able to cover the loan facility in a very conservative scenario as well. And the bank statements of the business look modest and accounts remain well in credit.

Inflation Risk:
As per the management, inflation does have an impact on the business. Inflation has increased the cost of key raw materials plus the energy cost and labour costs as well. To counter these, the company is focused on securing better terms with suppliers and adjusting pricing strategies to cover rising costs.