HOFFI COFFI (CARDIFF) LIMITED

Risk Rating: HIGH Justification: The company’s official status is listed as "Liquidation," indicating it is undergoing a formal closure process. Furthermore, the company is deeply balance-sheet insolvent, with net liabilities of £78,434 as of August 2024, and suffers from a severe working capital deficit that renders it unable to meet its short-term debts.

Key Concerns: * Active Liquidation Status: The most critical red flag is the company's status. Although a secondary data field indicates "in_liquidation: False," the primary status explicitly states "Liquidation." This suggests the company is either in the process of being wound up or has recently entered formal insolvency proceedings, meaning operations have likely ceased or are being managed by an insolvency practitioner. * Severe Insolvency and Liquidity Crisis: As of August 2024, current liabilities (£76,589) vastly exceed current assets plus prepayments (£9,348), resulting in net current liabilities of £67,241. The overall net asset position is deeply negative at -£78,434. The company lacks the liquid resources to service its debts as they fall due. * Steep Financial Deterioration: The company has experienced a dramatic decline since 2020, where it reported net assets of £6,897 and a substantial cash position of £126,119 (likely indicative of pandemic-related support such as a Bounce Back Loan). By 2024, total assets have fallen to £32,856 while total liabilities have ballooned to £76,589, demonstrating a sustained and unsustainable cash burn.

Positive Indicators: * Regulatory Compliance: Despite the severe financial distress, the company has maintained its filing requirements. The latest accounts were filed and approved on 13 May 2025, and the confirmation statement is currently up to date and not overdue. * Fixed Asset Base: The company holds £26,557 in fixed assets (likely comprising equipment and leasehold improvements for the café). These assets may hold residual value for creditors in a liquidation scenario, though their realizable value is uncertain. * Operational Longevity: Having been incorporated in 2013, the business successfully traded for several years prior to its recent financial decline, suggesting it once held a viable market position in the local hospitality sector.

Due Diligence Notes: * Clarify Insolvency Proceedings: Immediate investigation is required to confirm the exact nature and stage of the liquidation. Identify whether it is a Creditors' Voluntary Liquidation (CVL) or Compulsory Liquidation, and ascertain the identity of the appointed insolvency practitioner. * Director Discrepancies: The officer list names Leanne Emma Mole as the current director, yet the latest filed accounts were approved and signed by Rebecca Hannah Goldstone (who is also the PSC with >75% control). It is necessary to determine if there has been a recent resignation or if the PSC is acting as a de facto director. * Creditor Composition: Break down the £76,589 in current liabilities and £35,517 in non-current liabilities to determine how much is owed to related parties (directors/shareholders) versus third-party creditors (suppliers, HMRC, government loans). Given the cash position in 2020, it is highly probable that a government-backed loan was drawn down and subsequently depleted. * Data Discrepancy Flag: Reconcile the conflicting data points regarding the company's liquidation status (Status: Liquidation vs. in_liquidation: False) to ensure an accurate assessment of the company's legal standing.