REDSTREAM CONSULTING LTD

Executive Summary

Redstream Consulting Ltd demonstrates a stable and improving financial position typical of a young micro-entity, with positive working capital and shareholder funds growth. The company’s financial "vital signs" indicate good short-term liquidity and compliance, though limited operational scale and transparency constrain full assessment. With strategic focus on revenue growth, capital strengthening, and enhanced reporting, the company is well positioned for sustainable development.

REDSTREAM CONSULTING LTD - Analysis Report

Company Number: 13439183

Analysis Date: 2025-07-29 20:08 UTC

Financial Health Assessment for REDSTREAM CONSULTING LTD as of 30 June 2024

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1. Financial Health Score: B

Explanation:
REDSTREAM CONSULTING LTD exhibits solid financial health for a micro-entity with improving net current assets and shareholder funds over recent years. The company has a healthy liquidity position with significant positive working capital, indicating good short-term financial stability. However, being a micro-entity with minimal capital and no employees, the scale and operational robustness remain limited. The absence of detailed profit/loss data and revenue figures restrains a full assessment of operational performance. Overall, the company is financially stable but still in an early growth phase.

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2. Key Vital Signs and Interpretation

Metric	2024 Value (£)	Interpretation
Current Assets	37,036	Adequate liquid assets to cover short-term liabilities, showing improved cash or receivables.
Current Liabilities	11,481	Short-term obligations are modest and manageable relative to assets.
Net Current Assets	25,555	Positive working capital ("healthy cash flow") indicating the ability to meet short-term debts.
Shareholders Funds	25,555	Equity has more than doubled since 2022, showing retained earnings or capital injection.
Share Capital	1.00	Minimal capital base typical for a micro company; implies reliance on retained earnings/funds.
Employees	NIL	No staff employed; company likely dependent on director or outsourced services.
Filing Status	Up to date	No overdue accounts or returns; good compliance with statutory requirements.
Company Age	3 years	Young company still establishing its market presence and financial track record.
Industry	PR and Information services	Service sector with potential for growth but also competition and variability in cash flow.

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3. Diagnosis: Underlying Business Health

REDSTREAM CONSULTING LTD shows signs of a "healthy financial pulse" for a micro-entity. The company has transitioned from a negative net asset position at inception in 2021 to a positive and growing equity base (£25,555 in 2024). The doubling of net current assets from 2023 to 2024 suggests improved operational cash flow or capital injections, indicating the business is stabilizing financially.

The absence of employees suggests a lean operational model, possibly owner-managed or relying on freelancers/contractors, which aligns with a consulting and communications firm profile. The company’s compliance with filing deadlines and no signs of financial distress or overdue filings are positive indicators of good governance and financial discipline.

However, the minimal share capital and lack of detailed profitability data ("filleted" accounts without profit/loss disclosure) mean there is a limited scope to analyze revenue trends, margins, or operational efficiency. The company’s growth will depend on its ability to generate sustained revenues and manage costs effectively.

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4. Recommendations: Steps to Improve Financial Wellness

• Enhance Financial Reporting Transparency: Consider preparing and sharing full accounts including profit and loss statements to better assess operational performance and attract investment or credit.
• Build Capital Reserves: Explore ways to build up cash reserves or equity capital beyond £1 share capital to strengthen financial resilience.
• Revenue Diversification: Develop multiple client streams or service lines to reduce dependency on limited contracts, improving income stability.
• Consider Hiring Strategically: If growth permits, employing staff or contractors can increase capacity and enable scaling, balanced against cost control.
• Cash Flow Monitoring: Maintain close watch on receivables and payables to ensure continued positive working capital and avoid liquidity crunches.
• Long-Term Planning: Develop a strategic business plan with financial forecasts to guide growth and investment decisions.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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