FUSE TECHNOLOGY LTD

Executive Summary

Fuse Technology Ltd exhibits a high financial risk profile due to a severe erosion of net assets and near-zero working capital at the most recent year-end, heightening concerns over solvency and liquidity. While the company maintains good compliance and stable management, the financial data signals operational and financial fragility requiring further investigation into cash flows and business viability. Prospective investors should exercise caution and seek detailed financial disclosures before engagement.

FUSE TECHNOLOGY LTD - Analysis Report

Company Number: 12517760

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

1. Risk Rating: HIGH
   Justification: The company’s net assets and working capital have sharply declined to near zero in the latest financial year, indicating very limited financial buffer. The micro-entity accounts show net current assets of only £1 and net assets of £1 as of 31 March 2024, down from £5,466 in the prior year and significantly lower than earlier years, signaling acute solvency and liquidity risk.

2. Key Concerns:

• Severe depletion of net assets: The company’s net assets have fallen from £18,400 in 2021 to just £1 in 2024, a worrying erosion of equity.
• Working capital constraints: Current liabilities are almost equal to current assets (£27,605 vs. £27,606), leaving negligible working capital to meet short-term obligations.
• Minimal share capital and small scale: Share capital remains nominal at £1, indicating limited equity investment and a very small capital base, which may constrain business resilience.

3. Positive Indicators:

• Compliance with filing requirements: Accounts and confirmation statements are up to date with no overdue filings, indicating regulatory compliance and good governance practices.
• Stable management: The same director has been in place since incorporation, providing continuity in leadership.
• Micro-entity status: The company’s small size limits reporting requirements, which may reflect a lean cost structure and focused operations.

4. Due Diligence Notes:

• Investigate the reasons behind the drastic decline in net assets and working capital in the latest year, including any unusual or one-off expenses or asset write-downs.
• Review cash flow statements (if available) or management accounts to assess liquidity trends and ability to meet short-term liabilities.
• Examine customer base, contracts, and revenue trends to determine operational sustainability given the asset depletion.
• Confirm no undisclosed liabilities or contingent risks exist that could further impair financial stability.
• Assess director’s plans for recapitalization or restructuring to restore financial health.