HELLO COFFEE LTD

Executive Summary

HELLO COFFEE LTD, a micro-entity incorporated in 2023, currently exhibits high financial risk due to negative net assets and significant working capital deficits. While compliance with statutory filings is up to date and governance appears intact, the company’s liquidity and solvency position raise concerns about its ability to meet obligations and sustain operations. Further investigation into operational viability and financial backing is advised before investment consideration.

HELLO COFFEE LTD - Analysis Report

Company Number: 15133074

Analysis Date: 2025-07-20 17:57 UTC

1. Risk Rating: HIGH
   The company shows a notably weak financial position with net current liabilities significantly exceeding current assets, resulting in negative net assets and shareholders' funds. This indicates solvency risk and potential difficulties in meeting short-term obligations.

2. Key Concerns:

• Negative net assets (£-1,221) and net current assets (£-2,420) suggest the company is currently insolvent on a balance sheet basis.
• Minimal current assets (£673) compared to creditors due within one year (£3,093) highlight liquidity concerns and potential cash flow issues.
• No employees reported and recent incorporation (September 2023) with only one director controlling 75-100% of shares may raise questions about operational stability and governance robustness.

3. Positive Indicators:

• The company is compliant with filing requirements; no overdue accounts or confirmation statements are noted.
• The director is identified and actively appointed with no disqualifications or adverse records mentioned.
• The company operates in established sectors (retail mail order and wholesale of coffee and related products), which could offer market potential if operational issues are addressed.

4. Due Diligence Notes:

• Investigate the cause of the negative net assets and working capital deficit—review trading performance, cash flow statements, and any financing arrangements.
• Clarify the company’s business plan and revenue generation prospects, given the absence of employees and short operating history.
• Assess director’s background and financial support capacity, considering sole control and potential reliance on director funding.
• Confirm no undisclosed liabilities or contingent risks exist that could worsen financial position.