Company Number: 14554529

Analysis Date: 2025-07-20 11:04 UTC

1. Risk Rating: LOW
   Grad Construction Ltd exhibits a low risk profile primarily due to its positive net current assets, absence of overdue filings, and a solvent position as of the latest financial year. The micro-entity status and small operational scale limit complexity, and there are no signs of insolvency or governance issues.

2. Key Concerns:

• Significant reduction in current assets from £45,768 in 2023 to £17,476 in 2024, which could indicate reduced liquidity or asset disposals.
• Net assets and shareholders' funds declined from £37,072 to £17,610 over the same period, which warrants scrutiny to understand the cause (e.g., losses, distributions).
• Sole director and shareholder concentration may pose governance risks and limit oversight.

3. Positive Indicators:

• Positive net current assets (£17,610) indicate the company can meet its short-term liabilities comfortably.
• No overdue accounts or confirmation statement filings, reflecting regulatory compliance.
• The company is active with a growing employee base (from zero to one), suggesting operational activity.
• The director has clear control and responsibility, which simplifies accountability.

4. Due Diligence Notes:

• Investigate reasons behind the significant decrease in current assets and net assets between 2023 and 2024 to assess ongoing liquidity and profitability trends.
• Obtain profit and loss data to evaluate operational performance, since micro-entity accounts filed exclude P&L statements.
• Review director’s plans and financial forecasts to assess sustainability and growth prospects.
• Confirm no undisclosed liabilities or contingent risks exist beyond those reported.
• Assess market and sector conditions for construction of domestic and commercial buildings to contextualize business environment risks.