CERULEAN CAPITAL LIMITED

Executive Summary

Cerulean Capital Limited exhibits strong asset growth and solid equity, indicating a fundamentally sound business. However, a concerning decline in current assets and increased short-term liabilities point to liquidity challenges that require prompt attention to maintain operational health. Focused cash flow management and careful monitoring of working capital will be essential to ensure the company remains financially robust.

CERULEAN CAPITAL LIMITED - Analysis Report

Company Number: 13625465

Analysis Date: 2025-07-29 18:26 UTC

Certainly, let's conduct a thorough financial health assessment of Cerulean Capital Limited using the available data.

---

1. Financial Health Score: B

Explanation:
Cerulean Capital Limited shows solid net asset growth and positive working capital, indicating financial stability and a growing asset base. However, the sharp decline in current assets and cash reserves in the latest year signals emerging liquidity concerns that need addressing. The company's micro-entity size and zero employees suggest a lean operation, but cash flow management will be critical to maintain health.

---

2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	96,725	37,125	Significant increase, indicating investment or asset acquisition, a positive sign of growth.
Current Assets	28,011	58,998	Sharp decrease (~53%), warning sign of reduced liquid resources and short-term assets.
Cash (part of current assets)	Not separately disclosed in 2024; 1,970 in 2023	1,970	Decline or minimal cash noted, potential liquidity risk.
Current Liabilities	17,328	9,195	Nearly doubled, increasing short-term obligations may pressure liquidity.
Net Current Assets (Working Capital)	16,683	62,320	Decreased substantially, possible symptom of cash flow tightening.
Total Assets Less Current Liabilities	113,408	99,445	Growth in this metric shows overall asset base expansion despite higher liabilities.
Net Assets (Shareholders' Funds)	113,020	98,331	Positive increase, indicating retained earnings or capital injection, solid equity position.

Other observations:

• No employees reported, implying minimal payroll obligations but also possibly limited operational scale.
• The company operates in professional and management consultancy sectors, where human capital and receivables are critical.

---

3. Diagnosis: Financial Condition Assessment

Cerulean Capital Limited is demonstrating healthy growth in fixed and net assets, suggesting strategic asset acquisitions or investments. This indicates confidence in the business outlook or longer-term positioning.

However, the marked reduction in current assets and net current assets is a notable symptom of potential liquidity stress. The company’s ability to meet short-term obligations might be compromised if this trend continues. The increase in current liabilities compounds this concern, as more debts are due within a year.

The low or unreported cash balance is a "dry pulse" warning—cash is the lifeblood of any business for day-to-day survival. The absence of employees suggests the business may rely heavily on contractors or be in a preparatory phase, which can affect cash flow predictability.

Overall, the company shows asset strength and equity growth but symptoms of tight liquidity and working capital management challenges. This condition could be likened to a patient with a strong heart but low hydration levels—healthy overall but at risk in the short term if fluid (cash) intake is not restored.

---

4. Recommendations: Improving Financial Wellness

• Enhance Cash Flow Management: Prioritize improving cash reserves by accelerating debtor collections, negotiating better payment terms with suppliers, or considering short-term financing options to smooth liquidity.
• Monitor Current Liabilities: Keep close watch on short-term debts due; consider restructuring or extending payment terms to avoid liquidity crunch.
• Asset Utilization Review: Assess whether the increased fixed assets are generating expected returns or if any can be liquidated or leveraged to improve cash flow.
• Financial Forecasting: Implement rolling cash flow forecasts to anticipate periods of low liquidity and plan accordingly.
• Business Scale & Staffing: Evaluate whether scaling operations or hiring employees could improve revenue generation and operational efficiency, or if the current lean model is sustainable.
• Stakeholder Communication: Maintain transparent communication with shareholders and creditors about financial position and plans to improve liquidity.

---