AMAAN TRADING LIMITED

Executive Summary

Amaan Trading Limited is a nascent micro-entity operating in the highly competitive UK retail food and beverage sector, specifically within specialised beverage and confectionery sales. Its first-year financials reflect typical start-up characteristics including modest asset base, reliance on creditor financing, and niche market focus. While positioned as a small niche player able to serve local demand, the company must navigate sector pressures such as cost inflation and competition from larger retailers to establish a sustainable foothold.

AMAAN TRADING LIMITED - Analysis Report

Company Number: 14717871

Analysis Date: 2025-07-29 20:31 UTC

1. Industry Classification

Amaan Trading Limited operates primarily within the retail sector focused on the sale of food and beverages. Its SIC codes 47250 (Retail sale of beverages in specialised stores), 47240 (Retail sale of bread, cakes, flour confectionery and sugar confectionery in specialised stores), and 47110 (Retail sale in non-specialised stores with food, beverages or tobacco predominating) place it squarely in the UK retail grocery and beverage specialty market. This sector is characterized by high competition, low margins, and the need for strong supplier relationships and local consumer appeal. Retailers in this space typically have small to medium-sized operations with physical storefronts or niche product offerings.

2. Relative Performance

As a newly incorporated micro-entity (incorporated March 2023), Amaan Trading Limited’s financial footprint is modest. With fixed assets of £7,070 and current assets of £18,806 against current liabilities of only £244, it shows positive net current assets of £18,562, indicating short-term liquidity. However, the existence of £32,000 in long-term creditors creates an overall negative net asset position of -£6,368 and negative shareholders’ funds, which is not uncommon for a start-up in its first year as it invests and leverages credit lines for capital.

Compared to typical micro or small retail operators in the UK, this level of leverage is somewhat elevated relative to asset base, but not unusual for a business in start-up phase where initial capital expenditures and supplier credit are common. The average employee count of 3 aligns with a micro to small retail business size. The company’s filing of abridged accounts under FRS 105 micro-entity standards is typical for its size.

3. Sector Trends Impact

The UK retail food and beverage sector has seen increased consumer demand for specialty and convenience products, alongside growing competition from online grocery platforms and larger supermarket chains expanding into specialty categories. Cost inflation, especially on raw materials like flour and sugar confectionery ingredients, pressures margins. Additionally, consumer trends toward healthier products and sustainability are reshaping product assortments.

For Amaan Trading Limited, operating in specialised beverage and confectionery retail, these trends present both opportunity and risk. Its small scale and niche focus may allow it to cater to local tastes and adapt quickly but also make it vulnerable to supply chain disruptions and pricing pressures from larger competitors with greater buying power.

4. Competitive Positioning

Amaan Trading Limited is currently a niche player within the retail sector, focusing on specialised food and beverage products. It is not a market leader given its recent establishment, micro size, and limited financial resources. Its strengths include a focused product range which can attract a loyal customer base and the flexibility typical of small businesses to adapt rapidly.

Weaknesses include negative net assets due to creditor balances exceeding assets, indicating reliance on external financing which could constrain growth and operational flexibility. Additionally, with only three employees, the company may face scalability challenges and higher per-unit operational costs compared to larger competitors. The competitive landscape includes well-established supermarkets, convenience stores, and online retailers with economies of scale and broader product offerings.

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