BALTI RAJ HINCKLEY LTD

Executive Summary

BALTI RAJ HINCKLEY LTD is a newly established micro-entity operating as a licensed restaurant in the competitive UK hospitality sector. While it currently exhibits a modest financial base and positive working capital, it remains a niche player facing typical start-up challenges such as limited scale and thin equity. Industry trends such as post-pandemic recovery and rising operational costs will significantly influence its growth trajectory and competitive positioning.

BALTI RAJ HINCKLEY LTD - Analysis Report

Company Number: 15400201

Analysis Date: 2025-07-29 16:15 UTC

1. Industry Classification
   BALTI RAJ HINCKLEY LTD operates within SIC code 56101, classified as "Licensed restaurants." This sector encompasses establishments licensed to serve food and alcoholic beverages for consumption on the premises. Key characteristics include reliance on footfall, customer experience, and regulatory compliance (e.g., licensing laws). The industry is highly competitive, with margins often pressured by operational costs such as staffing, rent, and supply chain volatility.

2. Relative Performance
   As a newly incorporated micro-entity (incorporated January 2024), BALTI RAJ HINCKLEY LTD’s financials for the first 13 months show total net assets of £123 and modest fixed assets of £9,600. Current assets exceed current liabilities by £10,839, indicating positive short-term liquidity. The balance sheet includes significant creditors due after one year (£11,998) and accruals/deferred income (£8,318), which is typical for a start-up managing cash flow and supplier payments. With an average of 10 employees, the company fits the micro-entity classification (under 10 employees threshold slightly exceeded but still small scale). Compared to typical licensed restaurants, which often have higher capital employed and turnover, BALTI RAJ HINCKLEY LTD is still in an early growth phase and has yet to establish scale or profitability benchmarks.

3. Sector Trends Impact
   The licensed restaurant sector is currently influenced by several trends:

• Post-pandemic recovery driving increased consumer confidence and dining out frequency.
• Rising input costs (food, energy, wages) squeezing margins, especially for small operators.
• Growing consumer preference for ethnic and experiential dining, which could favor niche offerings like Balti cuisine if marketed well.
• Regulatory challenges around licensing, health and safety, and environmental standards.
• Increased competition from delivery and take-away services.
  BALTI RAJ HINCKLEY LTD’s success will depend on managing these pressures while capitalizing on local demand in Hinckley and differentiating itself through its culinary niche and customer service.

4. Competitive Positioning
   As a micro-entity and new entrant, BALTI RAJ HINCKLEY LTD is a niche player within the licensed restaurant sector. Its strengths include local ownership with centralized control (single director and 75-100% shareholding by Salman Billah), enabling agile decision-making. The relatively low fixed assets base suggests limited initial capital expenditure, which may reduce financial risk but could also constrain scale and facilities quality. The positive working capital position is encouraging but the very low net asset base indicates thin equity, which is typical for start-ups but can limit borrowing capacity and resilience against market shocks. The small workforce aligns with micro-operator norms but may require efficient management to maintain service quality. Compared to larger or more established licensed restaurants, BALTI RAJ HINCKLEY LTD will need to focus on building brand presence and operational efficiencies to compete effectively.