BENNOBOX LTD

Executive Summary

Bennobox Ltd operates as a micro-entity in the highly competitive take-away food sector, with financials showing a marked decline in working capital and net assets in the latest year. This deterioration contrasts with typical sector stability and likely reflects pressures from cost inflation and competitive dynamics. While strategically positioned in a busy Liverpool location, the company faces financial constraints that may limit its ability to capitalize on sector growth trends without operational improvements or financial restructuring.

BENNOBOX LTD - Analysis Report

Company Number: 13028193

Analysis Date: 2025-07-29 12:42 UTC

1. Industry Classification
   Bennobox Ltd operates within SIC code 56103, classified as "Take-away food shops and mobile food stands." This sector is part of the broader food service industry, characterized by fast turnover, relatively low capital intensity, and high competition from both independent outlets and chains. Key characteristics include reliance on location footfall, menu innovation, operational efficiency, and compliance with health and safety regulations. The sector typically sees micro and small enterprises dominating, with modest fixed assets and lean staffing.

2. Relative Performance
   As a micro-entity, Bennobox Ltd’s financial metrics align broadly with expectations for a small take-away food business. The company’s latest accounts (year ending November 2023) show fixed assets of £6,310, down from £8,413 the previous year, indicating some asset depreciation or disposals. Current assets have sharply declined to £1,451 from £8,917, while current liabilities marginally increased to £7,006. This shift results in a negative net working capital position (-£5,555), a notable deterioration from positive net current assets (£1,955) in prior years. Net assets have fallen to £755 from £10,368, indicating a material contraction in equity. This financial weakening contrasts with typical micro businesses in this sector, which often maintain modest but stable working capital due to the need for inventory and cash flow to cover daily operations. The average employee count of five aligns with sector norms for a business of this size.

3. Sector Trends Impact
   The take-away food sector has faced several headwinds recently: inflationary pressures on food and labor costs, shifting consumer preferences toward healthier or convenience options, and increased competition from food delivery platforms. The pandemic accelerated demand for take-away services but also intensified competition and regulatory scrutiny. Rising costs may have squeezed Bennobox Ltd’s margins, reflected in the reduced net assets and working capital. Additionally, increased reliance on third-party delivery services can compress profitability. Nonetheless, the sector benefits from sustained urban foot traffic and consumer demand for quick-service food, offering growth potential if operational efficiencies and menu appeal are managed well.

4. Competitive Positioning
   Bennobox Ltd is a niche player in a fragmented market dominated by small independents and national chains. Its scale and micro-entity status imply limited bargaining power with suppliers and less capacity for marketing or innovation compared to larger competitors. The negative working capital position and diminished net assets suggest current financial stress that could impair operational flexibility. However, its Liverpool location on Lark Lane—a known area with considerable foot traffic—offers a competitive advantage if leveraged effectively. The company’s ownership structure, with two principal shareholders exerting significant control, may aid swift decision-making but also limits external capital injection. Compared to sector peers, Bennobox’s recent financial contraction signals challenges in maintaining liquidity and profitability, which could threaten sustainability unless addressed through cost control, revenue growth, or restructuring.