GRASSHOPPER DEVELOPMENTS LTD

Executive Summary

Grasshopper Developments Ltd operates as a micro-entity within the UK domestic construction sector, showing asset investment but constrained by ongoing working capital challenges and minimal equity. Sector trends such as rising costs and supply chain issues likely impact its operations, requiring careful financial and project management. Positioned as a niche player, it must strengthen liquidity and operational resilience to compete effectively in a demanding market environment.

GRASSHOPPER DEVELOPMENTS LTD - Analysis Report

Company Number: 12649815

Analysis Date: 2025-07-20 17:25 UTC

1. Industry Classification
   Grasshopper Developments Ltd operates under SIC code 41202, which corresponds to the "Construction of domestic buildings" sector. This sector is characterized by activities related to the construction, renovation, and repair of residential properties. Firms in this industry range from small subcontractors to large general contractors, often influenced by housing market dynamics, regulatory frameworks, and construction material costs.

2. Relative Performance
   As a micro-entity, Grasshopper Developments Ltd demonstrates a modest asset base with fixed assets around £597k as of the 2023 financial year end. The company has consistently reported net current liabilities exceeding £590k, which indicates ongoing working capital challenges typical for smaller construction firms that often rely on credit terms and project financing. Shareholders’ funds remain positive but minimal (£7,299 in 2023), indicating limited retained earnings and equity cushion. Compared to average micro and small construction firms in the UK, which often maintain tighter working capital management and some level of positive net current assets, Grasshopper’s financials suggest a stretched liquidity position, possibly due to high short-term payables or growth-related investment in fixed assets.

3. Sector Trends Impact
   The domestic construction sector in the UK has faced mixed conditions over recent years. Rising material costs, supply chain disruptions, and labor shortages have exerted pressure on margins. However, government incentives for housing and renovation, alongside sustained demand for residential properties in certain regions, continue to provide opportunities for growth. For a micro-entity like Grasshopper Developments, these trends mean navigating cost inflation and securing timely payments is critical. Additionally, the average number of employees rising from 2 to 4 indicates gradual scaling, but this also increases operational complexity and overheads, which must be managed carefully in a competitive market.

4. Competitive Positioning
   Grasshopper Developments Ltd appears to be a niche micro-entity within the domestic construction sector, likely focusing on specialized or localized residential building projects given its size and asset profile. Its key strength lies in fixed asset investment, which may include property or construction equipment, supporting project delivery capacity. However, the persistent negative net current asset position and minimal equity buffer expose the company to financial vulnerability, especially in a sector where cash flow timing is critical. Compared to typical small competitors who may maintain stronger liquidity and more diversified contracts, Grasshopper’s financial position suggests potential risk if market conditions tighten or payment delays occur. The company’s directors hold significant control, which may streamline decision-making but also concentrates risk.