FORTUNE HOLDINGS LTD

Executive Summary

Fortune Holdings Ltd is a recently incorporated micro private company operating in the used car sales sector. Its financials show modest positive net current assets and shareholders’ funds with no compliance issues, but limited financial history and relatively thin working capital pose risks. Further due diligence on cash flow quality, director stability, and operational performance is advised to fully assess risk.

FORTUNE HOLDINGS LTD - Analysis Report

Company Number: 14281311

Analysis Date: 2025-07-29 20:25 UTC

1. Risk Rating: LOW to MEDIUM
   Fortune Holdings Ltd shows modest but positive net current assets and shareholders' funds with no overdue filings and an active status. However, being a micro-entity with limited financial data and a very recent incorporation date (2022) introduces some uncertainty around operational scale and stability.

2. Key Concerns:

• Limited Financial History: Only two full years of financial data are available, constraining trend analysis and long-term viability assessment.
• Thin Net Current Asset Buffer: Net current assets of approximately £17k against current liabilities of £92k in 2024 indicate relatively thin working capital cushioning, which may pose liquidity stress risks if cash flow fluctuates.
• Director Turnover: Two director resignations within a short time span (including the Sales Director in July 2024) could indicate internal management changes that warrant monitoring for stability.

3. Positive Indicators:

• Compliance with Filings: Accounts and confirmation statements are filed on time, indicating regulatory compliance and governance diligence.
• Increasing Net Current Assets and Shareholders Funds: Growth from £9,832 in 2023 to £16,958 in 2024 suggests some incremental strengthening of the equity base and working capital.
• Going Concern Statement: Directors explicitly state the company is a going concern supported by ongoing director backing, an important endorsement given the company’s size and age.

4. Due Diligence Notes:

• Cash Flow and Working Capital: Investigate the quality and timing of current assets, especially cash and receivables, to confirm liquidity sufficiency against short-term liabilities.
• Director Background and Stability: Review reasons behind recent director resignations and assess the experience and commitment of current directors, particularly the managing director.
• Revenue and Profitability Trends: Obtain detailed profit and loss information beyond balance sheet data to evaluate operational sustainability and margin trends given the sector (used car sales).
• Customer and Supplier Concentration: Understand business model dependencies and any concentration risks that could impact cash flow or operational continuity.