CERULEAN DRAKE LTD

Executive Summary

CERULEAN DRAKE LTD currently faces high financial risk due to a negative net asset position and significant liquidity shortfall as of 2023. While regulatory compliance is maintained and the company remains active with recent director appointments, the lack of operational scale and solvency deficits present serious concerns for investors. Further detailed financial and operational due diligence is essential to understand prospects for recovery or sustainability.

CERULEAN DRAKE LTD - Analysis Report

Company Number: 13803695

Analysis Date: 2025-07-29 20:57 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns as of the latest financial year. The 2023 accounts show total net liabilities of £4,102, indicating negative equity. Current liabilities (£7,164) greatly exceed current assets (£293), resulting in a negative net current asset position of -£6,871. This suggests acute liquidity stress with insufficient short-term assets to cover immediate obligations.

2. Key Concerns:

• Solvency and Negative Net Worth: The company’s net liabilities position in 2023 is a serious red flag, implying that total liabilities exceed total assets, which questions the company’s ability to meet long-term obligations.
• Liquidity Deficiency: The current liabilities are substantially higher than current assets, indicating potential cash flow problems to cover short-term debts.
• No Employees and Limited Activity: With zero employees and minimal current assets, operational capacity and business sustainability appear questionable. The company operates in real estate letting, a sector that typically requires some asset base or rental income to sustain operations, yet the financials suggest minimal activity.

3. Positive Indicators:

• No Filing Overdues: The company is compliant with statutory filing deadlines for accounts and confirmation statements, which indicates good governance in regulatory compliance.
• Active Status and Recent Director Appointment: The company remains active with a director appointed as recently as January 2024, suggesting ongoing management attention.
• Shareholders’ Equity Growth (Prior to 2023): The company showed very minimal equity at inception but had some increase in fixed assets by 2023, albeit small.

4. Due Diligence Notes:

• Investigate Underlying Causes of Negative Net Assets: Review detailed financial notes or management commentary to understand the nature of liabilities and reasons for asset impairment or write downs.
• Cash Flow Analysis: Request cash flow statements or bank statements to assess actual liquidity and ability to meet short-term obligations.
• Operational Model and Revenue Streams: Clarify the company’s business model in the real estate sector, rental income consistency, and plans for returning to profitability or asset growth.
• Director Background and Related Party Transactions: Given the family connections among directors and PSCs, review any related party transactions or intra-group balances that might affect financial stability.
• Future Funding Plans: Ascertain if there are plans for capital injection or restructuring to restore solvency.