FORTË BUILDING SOLUTION LTD

Executive Summary

Fortë Building Solution Ltd is a micro-sized, recently incorporated company with limited financial resources and a declining asset base, raising concerns about ongoing financial stability. While the company currently maintains positive working capital and liquidity, the sharp reduction from the prior year necessitates cautious credit consideration. Conditional approval is recommended with strict cash flow monitoring and periodic financial reviews to mitigate risk.

FORTË BUILDING SOLUTION LTD - Analysis Report

Company Number: 14415939

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

1. Credit Opinion: CONDITIONAL APPROVAL
   Fortë Building Solution Ltd is a very young and small company operating in real estate management and letting. The balance sheet shows modest net assets and working capital, indicating a positive but limited financial base. However, the recent year has seen a significant decrease in current assets and net assets compared to the prior year, which raises concerns about financial stability and cash flow sufficiency. The company has two directors with significant control, which is positive for governance but does not offset the decline in financial strength. Lending should be conditional on close monitoring of cash flow and confirmation of improved financial performance.

2. Financial Strength:
   The balance sheet at 31 October 2024 shows net assets of £7,160 and net current assets (working capital) of £4,627. This reflects a contraction from £14,021 net assets and £10,331 working capital in the previous year. Fixed assets are minimal (£3,913) and current assets (£8,204) are largely liquid but have decreased markedly. The reduction in current liabilities from £25,141 to £3,577 is positive but likely reflects reduced operational scale or restructuring. Overall, the company’s financial strength is weak due to its micro size and declining net asset base.

3. Cash Flow Assessment:
   Current assets still exceed current liabilities, yielding positive net current assets, which suggests the company can meet short-term obligations. However, the sharp drop in current assets (from £35,472 to £8,204) signals potential liquidity challenges or asset disposals. The company employs only 2 people, indicating a low overhead structure, but without profit and loss data, it is difficult to assess operational cash flow generation. Cash flow should be carefully reviewed before extending credit.

4. Monitoring Points:

• Track monthly cash flow and working capital trends to ensure liquidity remains positive.
• Monitor accounts receivable and payable aging to assess collection efficiency and supplier payment behaviour.
• Watch for improvements or further declines in net assets in next accounts.
• Review management plans for business growth or cost control to reverse recent asset declines.
• Confirm no overdue statutory filings to avoid regulatory risk.