FORTCOG LTD

Executive Summary

FORTCOG LTD currently exhibits a weak financial position marked by negative net assets and significant long-term liabilities, undermining its creditworthiness. While short-term liquidity appears marginally positive, the company's overall leverage and limited operational scale present a high risk for additional credit exposure. Close monitoring of its financial recovery and operational cash flows is essential before considering credit extension.

FORTCOG LTD - Analysis Report

Company Number: 12710743

Analysis Date: 2025-07-20 15:09 UTC

1. Credit Opinion: DECLINE
   FORTCOG LTD shows a concerning financial position with significant net liabilities despite reporting positive net current assets. The latest accounts disclose total net liabilities of £18,704 as of 31 July 2024, indicating the company's total liabilities exceed its assets. This weak balance sheet and recurring negative net asset position raise serious doubts about the company’s ability to service additional debt or meet commercial obligations reliably. The absence of employees and minimal share capital (£1.00) further suggests limited operational scale and financial buffer. Given these factors, extending credit would carry elevated risk without substantial guarantees or covenants.

2. Financial Strength:
   The balance sheet reveals current assets of £8,674 against current liabilities of £1,042, producing positive net current assets of £7,632. However, the company has long-term creditors amounting to £26,336, resulting in total net liabilities of -£18,704. This indicates the company is heavily leveraged with creditors exceeding owned assets. The inconsistency in reported figures between different sections of the accounts suggests possible classification issues, but the overall position remains weak. The shareholder funds are negative at -£18,704, reflecting accumulated losses or capital deficiencies. The company’s financial trajectory shows volatility and lacks a solid equity base.

3. Cash Flow Assessment:
   The positive net current assets indicate some short-term liquidity, but the low absolute cash and current asset levels (£8,674) limit the company’s ability to withstand cash flow shocks. The negative net asset position driven by large long-term liabilities points to potential refinancing or solvency risks. The absence of employees and limited scale of operations may constrain cash inflows. Without detailed profit and loss or cash flow statements, it is difficult to confirm operating cash generation, but the overall profile suggests tight working capital management and potential dependency on external financing.

4. Monitoring Points:

• Review future filings for improvement in net asset position and reduction in long-term liabilities.
• Monitor the company’s ability to generate operating cash flows and maintain positive working capital.
• Watch for any changes in director or ownership structure that may impact governance or financial stability.
• Assess any overdue filings or indications of financial distress in subsequent periods.
• Monitor external economic factors affecting the retail mail order/internet sales sector which may impact revenues.