CASTERNET STREAMING SERVICE LTD

Executive Summary

CASTERNET STREAMING SERVICE LTD presents a solid financial base typical of a new micro-entity with positive working capital and no liabilities, indicating healthy liquidity and solvency. However, the company remains small with limited assets and a single employee, suggesting it is in an early start-up phase with potential vulnerability to operational risks. Continued focus on building reserves, investing strategically, and maintaining compliance will be crucial for sustainable growth.

CASTERNET STREAMING SERVICE LTD - Analysis Report

Company Number: 14803387

Analysis Date: 2025-07-20 19:17 UTC

Financial Health Assessment for CASTERNET STREAMING SERVICE LTD

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1. Financial Health Score: Grade B

Explanation:
The company shows a clean and simple financial position typical of a micro-entity in its first year of trading. It has positive net current assets and no liabilities, indicating a "healthy cash flow" with no immediate financial distress. However, the scale of operations is very small, and the company is in its infancy, so there is limited data to assess long-term financial stability or profitability. The absence of fixed assets and minimal current assets suggests the company is likely service-oriented with low capital requirements, which aligns with the SIC codes for IT consultancy and retail of audio/video equipment.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	0	No long-term assets, typical for a start-up micro-entity, possibly no major capital investment yet.
Current Assets	6,070	Positive cash or receivables indicating available short-term resources to fund operations.
Current Liabilities	0	No short-term debts or payables; no immediate financial obligations or cash flow pressure.
Net Current Assets	6,070	Positive working capital, a sign of liquidity and ability to meet short-term expenses.
Net Assets (Shareholders’ Funds)	6,070	Positive equity base, showing the company is solvent with a modest capital injection.
Number of Employees	1	Very small operation, low overhead costs, possibly owner-managed.
Company Status	Active	Operating with no signs of financial distress or insolvency proceedings.
Account Category	Micro	Smallest reporting requirements, consistent with early-stage, low-risk financial profile.

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3. Diagnosis: Business Health Insights

• Liquidity and Solvency: The company shows a "healthy cash flow" profile with no creditors and positive net current assets. This means the business can meet its short-term obligations comfortably, a critical sign of financial health.
• Scale and Growth Potential: With only £6,070 in current assets and a single employee, the company is very small and likely in the start-up phase. While it is solvent, the scale means it is vulnerable to any unexpected expenses or revenue shortfalls.
• Asset Base and Investment: No fixed assets indicate minimal capital investment so far. This is typical for service or consultancy businesses that rely more on intellectual property or human capital than physical assets.
• Ownership and Control: The sole director and 100% owner, Isaac Kwartey Nii Owoo, has full control and voting rights, suggesting quick decision-making but also concentration of risk.
• Industry Context: The company operates in IT consultancy and retail of audio/video equipment. Both sectors may require investment in technology and marketing to grow, which is not yet evident in the financials.
• Compliance and Reporting: Accounts and confirmation statements are up to date with no overdue filings, indicating good corporate governance practices.

Symptoms of Strength: Positive working capital, zero liabilities, and clean compliance records.
Symptoms of Early Stage: Minimal assets, low employee count, and modest capital base.

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4. Recommendations

• Build Cash Reserves: Continue to maintain positive working capital to cushion against unexpected costs or delays in revenue generation.
• Invest in Growth: Consider gradual investment in fixed assets or technology infrastructure aligned with the company’s IT consultancy and retail activities to support scaling.
• Diversify Revenue Streams: Explore expanding client base or product offerings to reduce dependence on a narrow market segment.
• Maintain Compliance: Keep filing deadlines and corporate governance up to date to avoid penalties and maintain stakeholder confidence.
• Monitor Cash Flow Regularly: Implement monthly cash flow projections to anticipate any liquidity issues as the business grows.
• Plan for Staffing: As business expands, consider hiring additional staff to support operations and growth initiatives.
• Explore Funding Options: If growth requires more capital, assess options such as equity investment, loans, or grants suitable for micro-entities.

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