FAURE INDUSTRY LIMITED

Executive Summary

FAURE INDUSTRY LIMITED is a newly incorporated dormant company with a strong nominal cash position but no trading history or financial activity. Due to the absence of operational performance and cash flow, credit extension is not recommended at this stage. Close monitoring of future trading commencement and financial filings is essential before reassessing creditworthiness.

FAURE INDUSTRY LIMITED - Analysis Report

Company Number: 14267220

Analysis Date: 2025-07-29 13:43 UTC

1. Credit Opinion: DECLINE
   FAURE INDUSTRY LIMITED is a dormant company with no trading activity or financial transactions reported since incorporation in 2022. Despite a substantial cash balance of £30 million reported as shareholders' funds and net assets, the lack of operational history or revenue generation presents significant uncertainty regarding its ability to service debt or commercial obligations. There is no evidence of trading performance, cash flow from operations, or financial trajectory, which is critical for credit risk assessment. Extending credit to a non-trading entity without demonstrated business activity or cash flow is not advisable.

2. Financial Strength:
   The balance sheet shows a strong capital base with £30 million in cash and net assets, fully reflected in shareholders' equity of £30 million. The company’s capital structure is straightforward, consisting solely of ordinary shares with no liabilities recorded. However, the financial strength is purely nominal as the company is dormant, with no trading assets or liabilities. The balance sheet strength reflects initial capitalization rather than operational financial health.

3. Cash Flow Assessment:
   There are no reported cash inflows or outflows from business activities, as the company is dormant. The cash balance remains static at £30 million over the reported periods, indicating no operating cash flow or working capital cycle. Liquidity is high in nominal terms, but without any trading activity, the cash is not generating returns or supporting business operations. The company is effectively a holding entity with idle funds.

4. Monitoring Points:

• Monitor incorporation of trading activities and filing of full accounts reflecting operational performance.
• Watch for any changes in cash balances indicating capital deployment or operating activity.
• Track filing of confirmation statements and accounts to ensure compliance and update on business status.
• Review any changes in director appointments or PSCs that could indicate strategic shifts.