CLASSY BITES LIMITED

Executive Summary

Classy Bites Limited operates as a micro-entity in the highly competitive UK takeaway food sector, facing persistent financial challenges including negative net assets and working capital deficits. While the sector benefits from growing consumer demand for convenience foods, the company’s limited scale and financial position constrain its ability to capitalize on these trends effectively. Without addressing liquidity and profitability issues, Classy Bites remains vulnerable relative to better-capitalized competitors.

CLASSY BITES LIMITED - Analysis Report

Company Number: 12749860

Analysis Date: 2025-07-29 20:06 UTC

1. Industry Classification
   Classy Bites Limited operates under SIC code 56103, which classifies it in the "Take-away food shops and mobile food stands" sector. This sector is characterized by businesses offering prepared food for immediate consumption off-premises, including fast food outlets, mobile food vendors, and takeaway shops. Key industry features include low capital intensity relative to full-service restaurants, high competition, sensitivity to location and foot traffic, and dependency on consumer discretionary spending patterns.

2. Relative Performance
   Classy Bites Limited is categorized as a micro-entity, indicating a very small scale operation with turnover, assets, and employee count below micro thresholds. Financially, the company has consistently reported net liabilities over the past five years, with net assets deteriorating from -£9,229 in 2020 to -£11,301 in 2024, despite a modest reduction in liabilities in the latest period. Current liabilities exceed current assets substantially, reflecting working capital deficits (-£16,403 in 2024), which signal liquidity challenges. The fixed assets have declined from £11,097 in 2020 to £5,102 in 2024, indicating possible asset disposals or depreciation. Compared to typical micro-sized businesses in this sector, which often operate with tight margins but positive net assets or at least break-even working capital, Classy Bites is underperforming financially.

3. Sector Trends Impact
   The takeaway food sector has been influenced by several trends: increased consumer demand for convenience and delivery services, rising food costs due to inflation and supply chain disruptions, and heightened competition from both established chains and new entrants leveraging digital ordering platforms. Additionally, regulatory pressures related to food safety, health standards, and sustainability are increasing operating costs. For a micro-entity like Classy Bites, these trends can present both opportunities (via delivery and online sales channels) and threats (cost pressures and competitive intensity). The company’s ongoing net liability position suggests it may have limited capacity to invest in technology or marketing to capitalize fully on these trends.

4. Competitive Positioning
   Classy Bites is a niche player within the takeaway food sector, operating on a micro scale with a very small workforce (3 employees on average). The company’s directors, Carl and Carole Maddocks, hold significant control, which is typical of small, owner-managed businesses in this space. Strengths may include local market knowledge and low overhead costs; however, the financials reveal weaknesses such as persistent working capital deficits and negative net worth, which undermine financial stability and resilience. Without stronger capital backing or improved profitability, Classy Bites risks being outcompeted by larger or better-capitalized peers who can leverage economies of scale, stronger supply chain relationships, and digital platforms. The lack of an audit suggests minimal external financial scrutiny, which can constrain access to finance.