Company Number: 13481524

Analysis Date: 2025-07-29 17:40 UTC

1. Credit Opinion: DECLINE
   Fortune Cooking Ltd demonstrates persistent negative net assets and working capital deficits over the last three years, indicating insufficient financial resources to meet short-term liabilities. The ongoing net current liability position and negative shareholders' funds reflect a weak balance sheet and limited ability to service debt or absorb financial shocks. Without evidence of profitability or capital injection, credit risk is high. The company’s status as a micro-entity with minimal asset base and no audited accounts further limits transparency and comfort. Approval of credit facilities is not recommended at this stage.

2. Financial Strength:
   The company’s net assets remain negative, improving slightly from -£10,769 in 2023 to -£6,469 in 2024, but still well below zero. Current liabilities of £15,000 exceed current assets (£8,531 in 2024), resulting in a negative working capital of £-6,469. Fixed assets are not reported, suggesting very limited tangible asset backing. Shareholders’ funds are entirely negative, which means the business is technically insolvent from an accounting perspective. The company remains a micro-entity with two employees and no significant off-balance sheet commitments disclosed.

3. Cash Flow Assessment:
   The increase in current assets from £4,231 to £8,531 is a positive indicator of some cash or receivables improvement. However, the consistent £15,000 current liabilities create a liquidity strain. Negative net current assets indicate that the company may struggle to meet short-term obligations without external funding or operational cash inflows. There is no indication of cash flow from operations or profitability in the data provided, which raises concerns about ongoing liquidity and working capital management.

4. Monitoring Points:

• Improvement or deterioration in net current assets and overall net assets.
• Profitability trends and cash generation from operations in future accounts.
• Changes in the company’s financing structure, including capital injections or debt restructuring.
• Timely filing of accounts and confirmation statements to monitor compliance and company activity.
• Director conduct and any changes in management that may influence financial stewardship.