FORTUNE RESOURCE GROUP LTD

Executive Summary

FORTUNE RESOURCE GROUP LTD, a recently incorporated micro-entity, exhibits high solvency risk due to negative net assets and net current liabilities exceeding current assets. While statutory compliance is maintained and the company is active, the absence of employees and limited financial resources highlight significant liquidity and operational challenges. Further investigation into liabilities and operational progress is recommended before considering investment.

FORTUNE RESOURCE GROUP LTD - Analysis Report

Company Number: 14615181

Analysis Date: 2025-07-29 19:03 UTC

1. Risk Rating: HIGH
   Justification: The company’s financial position as of 31 January 2024 shows net current liabilities of £1,166 with only £1 in current assets against £1,167 of current liabilities. This indicates an inability to meet short-term obligations. The negative net assets position and minimal capital base raise significant solvency concerns for a company incorporated less than a year ago.

2. Key Concerns:

• Solvency risk due to negative net assets and net current liabilities exceeding current assets by over £1,100.
• Lack of operational activity or scale as evidenced by zero employees and micro-entity status, suggesting limited revenue generating capacity.
• Concentrated ownership and control with two directors holding substantial shares and voting rights, which may limit independent oversight.

3. Positive Indicators:

• The company is current with statutory filings (accounts and confirmation statement) and not in liquidation or any insolvency procedure.
• Active website presence and contact information may indicate ongoing business development efforts.
• Directors have relevant business and consultancy experience, potentially supportive of future growth.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess if these are trade payables, loans, or other debts and their payment terms.
• Confirm whether the company has commenced revenue-generating operations post year-end or secured additional funding to improve liquidity.
• Review director and shareholder agreements for governance structure and risk of related-party transactions given concentrated control.
• Assess business plan viability and market positioning in employment placement services to understand long-term sustainability.