ROOKERY & HAZLE BARNS LTD

Executive Summary

Rookery & Hazle Barns Ltd shows high financial risk due to persistent negative working capital and significant long-term debt relative to equity. While the company holds valuable investment property and maintains regulatory compliance, limited operational activity and cash flow constraints raise serious concerns about its ability to meet obligations and sustain operations. Further detailed financial and operational review is recommended before investment.

ROOKERY & HAZLE BARNS LTD - Analysis Report

Company Number: 13050876

Analysis Date: 2025-07-20 12:59 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant liquidity concerns, with negative net current assets consistently around £162k to £170k and current liabilities of £165k+ against minimal current assets (~£3k). The heavy long-term debt of £540k against net assets of just £20k further stresses solvency, raising risk of inability to meet obligations.

2. Key Concerns:

• Liquidity Shortfall: Current liabilities far exceed current assets by a large margin, indicating potential cash flow difficulties to meet short-term obligations.
• High Leverage: Long-term bank loans of £540k dwarf shareholder funds and net assets (~£20k), reflecting high financial risk and limited equity buffer.
• Limited Operational Activity: No employees reported and very low turnover implied by minimal current assets and debtors, questioning sustainability of ongoing operations and revenue generation.

3. Positive Indicators:

• Stable Fixed Assets: Investment property valued consistently at £722k provides tangible asset backing and potential collateral for financing.
• No Overdue Filings: Company is compliant with statutory filing deadlines for accounts and confirmation statements, indicating sound governance and regulatory compliance.
• Experienced Directors: Two directors appointed with no indication of disqualifications, suggesting stable management.

4. Due Diligence Notes:

• Investigate the nature and terms of the £540k bank loan, including covenants and repayment schedule, to assess refinancing risk.
• Review cash flow forecasts and any income streams from the investment property to evaluate liquidity improvement prospects.
• Confirm the company’s revenue generation or funding sources given absence of employees and minimal current assets.
• Assess any related party transactions or group undertakings owing amounts to/from the company, for potential financial support or risks.
• Clarify whether any operational changes or restructuring are planned to address persistent working capital deficits.