DAVE FULTON HOLDINGS LIMITED

Executive Summary

Dave Fulton Holdings Limited is a newly incorporated private holding company with persistent liquidity challenges and a high reliance on related party funding. While regulatory filings are current and governance appears transparent, the company’s minimal equity and negative working capital position present material solvency and operational risks. Further investigation into its financial assets and related party arrangements is advised to better understand its financial resilience and sustainability.

DAVE FULTON HOLDINGS LIMITED - Analysis Report

Company Number: 13837783

Analysis Date: 2025-07-20 11:32 UTC

1. Risk Rating: HIGH
   The company shows persistent negative net current assets and a material imbalance between current liabilities and current assets, indicating significant short-term liquidity risk. The very limited equity base (£100) and reliance on related party borrowings raise concerns about solvency and financial sustainability.

2. Key Concerns:

• Liquidity Deficit: Net current liabilities exceed £190,000 consistently, with current assets virtually negligible (£100), suggesting the company cannot meet its short-term obligations from liquid resources.
• Reliance on Related Party Debt: Almost all current liabilities are owed to related parties (£179,050 in 2024), indicating potential dependency on director or related entities for funding rather than generating independent cash flow.
• Minimal Equity and Operational Scale: Share capital and shareholders’ funds remain at £100, with no evidence of operational turnover or trading activity beyond holding investments, raising questions about the company’s operational sustainability and going concern assumptions.

3. Positive Indicators:

• Compliance with Filing Deadlines: The company has filed accounts and confirmation statements on time, showing regulatory compliance and good governance in reporting.
• Clear Ownership and Control: The sole director and 75-100% shareholder is identified, providing transparency in governance and control structure.
• No Audit Requirement: The small company exemption has been appropriately applied, consistent with company size and turnover, reducing administrative burden.

4. Due Diligence Notes:

• Nature and Recoverability of “Other Financial Assets”: The company holds approximately £190,950 in "other financial assets," presumably loans or investments. Investigate the nature, valuation basis, and collectability of these assets to assess realisable value.
• Related Party Transactions: Review agreements and terms with related parties providing funding to understand the risk of calls for repayment and any implicit guarantees or support arrangements.
• Going Concern Justification: Examine management’s basis for preparing accounts on a going concern basis, given the ongoing liquidity shortfall and minimal equity base.
• Business Activities and Revenue Streams: Clarify operational model and revenue generation prospects to understand if the company is intended as a passive holding vehicle or an active business entity.
• Director’s Financial Standing and Support: Assess the financial strength and willingness of the sole director/shareholder to continue supporting the company.