FORTUNE WORLD LIMITED

Executive Summary

Fortune World Limited exhibits ongoing negative equity and significant working capital deficits, signaling financial distress and limited capacity to service debt. The reliance on fixed assets does not offset liquidity concerns, making the company a high credit risk currently. Close monitoring of financial improvements and creditor negotiations is essential before reconsidering credit facilities.

FORTUNE WORLD LIMITED - Analysis Report

Company Number: 13518692

Analysis Date: 2025-07-20 11:15 UTC

1. Credit Opinion: DECLINE. Fortune World Limited shows persistent negative equity and inadequate working capital, indicating a weak financial position and limited ability to meet short-term obligations. The company’s fixed assets are substantial relative to current assets, but significant current liabilities and long-term creditors outweigh current resources. Without evidence of positive cash flows or profitability, there is a high risk of default on credit facilities.

2. Financial Strength: The balance sheet reveals negative shareholders’ funds of £14,038 as at 31 July 2023, worsening from a negative £8,389 in 2022. Fixed assets remain stable at £274,149, but current assets are low (£24,401) and insufficient to cover current liabilities (£115,417), resulting in net current liabilities of £91,016. Additionally, long-term creditors of £196,571 further strain financial stability. The company’s micro-entity status and exemption from audit limit detailed transparency.

3. Cash Flow Assessment: Liquidity is weak with working capital deficits persisting over the last two years. Current liabilities consistently exceed current assets by a large margin, indicating potential difficulties in meeting short-term debts. Without cash flow statements or evidence of operating cash inflows, it is likely the company relies on external financing or asset sales to fund operations, which is unsustainable long-term.

4. Monitoring Points:

• Monitor changes in net current assets and working capital improvements.
• Watch for trends in shareholder equity recovery or further erosion.
• Track any changes in creditor terms or restructuring of debts.
• Review updates on profitability and cash flow generation in subsequent filings.
• Assess director actions and any new financing arrangements.