HAZELSTONES PROPERTY LTD

Executive Summary

HAZELSTONES PROPERTY LTD is currently experiencing significant financial distress, with negative net assets and severely strained liquidity. The company needs immediate action to improve cash flow and restructure liabilities to avoid insolvency risk. Prompt management of liquidity and asset optimization are critical to restoring financial health.

HAZELSTONES PROPERTY LTD - Analysis Report

Company Number: 13951584

Analysis Date: 2025-07-20 15:11 UTC

Financial Health Assessment Report: HAZELSTONES PROPERTY LTD

---

1. Financial Health Score: D

Explanation:
The company shows significant signs of financial distress. The net assets have turned negative (£-19,188) in the latest year, indicating liabilities exceed assets. This is a critical symptom of financial instability. The lack of cash and very low current assets compared to high current liabilities is a concerning sign of liquidity issues. The financial health score of D reflects a company that is currently in a precarious financial position and requires urgent remedial actions to restore stability.

---

2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	140,000	Significant investment in long-term assets; however, illiquid in the short term.
Current Assets	262	Extremely low current assets suggest minimal liquid resources to meet short-term obligations.
Current Liabilities	159,450	Very high short-term debts, likely overdue or pressing, indicating liquidity stress.
Net Current Assets	-159,188	Negative working capital, a critical symptom of cash flow distress and potential operational risks.
Net Assets (Equity)	-19,188	Negative net worth indicates the company owes more than it owns; a key sign of financial distress.
Shareholders Funds	-19,188	Negative equity indicates capital erosion and potential solvency concerns.
Employees	0	No employees, possibly indicating a non-operational status or outsourced operations.

---

3. Diagnosis: Financial Condition Summary

HAZELSTONES PROPERTY LTD is showing clear symptoms of financial distress akin to a patient with a failing organ system. The company has invested heavily in fixed assets (£140,000), but this has not translated into sufficient current assets or liquidity to cover immediate debts, as the current liabilities far exceed current assets by a large margin. This illiquidity can be likened to a "poor pulse" in financial terms—cash flow is severely constrained.

The negative net assets position is a worrying "red flag" indicating the company is technically insolvent on paper. Without sufficient liquid resources or additional capital injections, the company risks insolvency or creditor action. The absence of employees may suggest a minimal operational footprint or a holding company structure, but it also implies limited operational activity to generate cash flow.

The directors—who also appear to be the sole significant controllers—face the challenge of righting the company’s course before the symptoms become fatal (i.e., insolvency or forced liquidation).

---

4. Recommendations: Actions to Improve Financial Wellness

1. Immediate Liquidity Management:

   • Seek to increase current assets, particularly cash, through short-term financing or equity injection.
   • Negotiate with creditors to restructure or delay payments to ease short-term obligations.

2. Asset Review and Optimization:

   • Evaluate the fixed assets for potential sale or refinancing to generate cash.
   • Consider whether all fixed assets are essential or if some can be liquidated without harming core business value.

3. Operational Assessment:

   • Review business operations to identify revenue-generating opportunities or cost-cutting measures.
   • Evaluate if the company’s business model needs adjustment to improve cash inflows.

4. Engage Professional Advice:

   • Consult insolvency practitioners or financial advisors to explore restructuring options.
   • Prepare for potential formal insolvency processes if turnaround efforts fail.

5. Strengthen Governance and Reporting:

   • Directors should ensure timely and transparent financial reporting.
   • Monitor financial "vital signs" monthly to detect early symptoms of distress.

---