SARADI CONSTRUCTION LTD
Executive Summary
SARADI CONSTRUCTION LTD is a recently incorporated micro private limited company operating in the construction sector with a strong liquidity position and full regulatory compliance. Despite a decline in net assets and limited operating history, the company shows no immediate solvency or liquidity concerns. Close attention should be given to operational sustainability and governance due to sole ownership and modest scale.
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This analysis is opinion only and should not be interpreted as financial advice.
SARADI CONSTRUCTION LTD - Analysis Report
Risk Rating: LOW
The company demonstrates a positive net asset position and net current assets well in excess of current liabilities. Filings are up to date with no overdue accounts or confirmation statements, and the business appears operational with at least one employee. The director holds full control, simplifying governance.Key Concerns:
- Declining net assets: Net assets decreased from £18,221 in 2023 to £14,312 in 2024, indicating some erosion of capital.
- Small scale and limited operating history: Incorporated in late 2022, SARADI CONSTRUCTION LTD is a micro entity with minimal financial disclosure, limiting visibility on business sustainability.
- Reliance on a single director/owner: Mr. Adnan Ahmad controls 75-100% of shares and voting rights, which could pose governance or succession risks.
- Positive Indicators:
- Strong liquidity position: Current assets exceed current liabilities by over £14k, suggesting the company can meet short-term obligations.
- Compliance: No overdue filings; accounts and confirmation statements are filed on time, indicating good regulatory compliance.
- Clear business focus: The SIC codes identify construction of domestic and commercial buildings, a well-defined industry sector.
- Due Diligence Notes:
- Investigate the reason for the decline in net assets between 2023 and 2024 and assess the company’s profitability and cash flow trends.
- Review contracts, client base, and pipeline to gauge operational sustainability and growth potential.
- Evaluate the director’s background and capacity to manage and grow the business given sole ownership and control.
- Confirm the nature and extent of any liabilities or contingent risks not captured in the micro-entity accounts.
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