THE GRAD STORY LIMITED

Executive Summary

The Grad Story Limited is a micro-sized start-up with a very weak financial position characterized by negative net assets and working capital. The current financial data shows insufficient liquidity and high leverage, making credit extension too risky at this stage. Close monitoring of future financial improvements and capital support is essential before reconsidering credit facilities.

THE GRAD STORY LIMITED - Analysis Report

Company Number: 15168678

Analysis Date: 2025-07-20 15:28 UTC

1. Credit Opinion: DECLINE
   The company is very newly established (incorporated in late 2023) and has reported significant net liabilities (£14,889) against minimal assets. The balance sheet shows negative shareholders' funds and net current liabilities, indicating poor financial health. There is no profit and loss information available to assess earnings, and the company operates at a micro scale with minimal trading history, resulting in limited evidence of repayment capacity or business sustainability. Given the early stage and weak financial position, extending credit currently poses high risk.

2. Financial Strength:

• Fixed Assets: £1,332
• Current Assets: £315
• Current Liabilities: £15,702
• Net Current Assets: -£519 (negative working capital)
• Long Term Liabilities: £15,702
• Net Assets / Shareholders Funds: -£14,889
  The company’s balance sheet is heavily leveraged with liabilities exceeding assets and equity significantly. Negative net assets and working capital suggest financial distress or reliance on external funding. No positive retained earnings or reserves are reported. The company’s financial base is fragile.

3. Cash Flow Assessment:
   Current assets (£315) are insufficient to cover current liabilities (£15,702), indicating liquidity stress. Negative net current assets imply the company may struggle to meet short-term obligations without additional capital injections or credit support. The absence of detailed cash flow or profit & loss data limits further liquidity analysis but the available data signals weak cash flow position.

4. Monitoring Points:

• Improvements in net assets and working capital in subsequent filings
• Profitability trends once P&L accounts become available
• Cash flow generation and liquidity ratios going forward
• Changes in debt structure, especially current vs. long-term liabilities
• Director’s financial support or capital injections given sole control and ownership by Mr. Shivank
• Timely filing of next accounts and confirmation statements to monitor compliance and business activity