FULTON INDUSTRIES LTD

Executive Summary

Fulton Industries Ltd presents a strong financial position with increasing net assets and solid liquidity, supported by timely compliance with statutory requirements. The introduction of long-term liabilities and reduction in staff levels are areas for further investigation to ensure ongoing operational and financial stability. Overall, the company currently poses a low risk from a solvency and liquidity perspective.

FULTON INDUSTRIES LTD - Analysis Report

Company Number: 12728258

Analysis Date: 2025-07-20 19:15 UTC

1. Risk Rating: LOW
   Fulton Industries Ltd demonstrates strong net asset growth, substantial positive working capital, and no overdue filings. The company maintains healthy solvency and liquidity positions consistent with a micro-entity in the IT consultancy sector.

2. Key Concerns:

• Long-Term Liabilities: The emergence of £70,414 in creditors falling due after more than one year in 2024, where none existed previously, warrants review to understand the nature and terms of this debt.
• Employee Reduction: A decrease in average employees from 8 to 6 in the latest year may indicate operational scaling or cost-cutting; implications on future revenue should be monitored.
• Limited Share Capital: Share capital remains nominal (£1), which while typical for micro companies, limits the equity buffer and may affect perceptions of financial robustness.

3. Positive Indicators:

• Strong Net Assets: Net assets increased from £320,513 in 2023 to £351,901 in 2024, reflecting retained earnings and asset growth.
• Robust Liquidity: Net current assets of £337,845 indicate comfortable short-term liquidity to meet obligations.
• Timely Filings & Compliance: All statutory accounts and confirmation statements are filed on time with no overdue reports or penalties.
• Operational Stability: Despite a slight reduction, maintaining 6 employees supports ongoing business activity in IT consultancy.

4. Due Diligence Notes:

• Clarify the nature, interest rate, and repayment schedule of the long-term creditors introduced in 2024.
• Assess recent revenue trends and profitability to understand if employee reduction is linked to operational efficiency or reduced demand.
• Review directors’ reports and any strategic commentary for future outlook and risk factors.
• Confirm absence of any director disqualifications or legal proceedings not disclosed in the data.
• Evaluate the company’s cash flow statements (if available) to corroborate liquidity position.