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.