CM PUBS LIMITED

Executive Summary

** CM PUBS LIMITED operates as a micro-entity within the UK public houses and bars sector, facing typical challenges of a new independent operator including negative equity and working capital deficits. Industry trends of rising costs and evolving consumer preferences create a demanding backdrop for financial stabilization and growth. While local management experience is a potential strength, the company must address liquidity risks to enhance competitive positioning relative to more established sector players.

CM PUBS LIMITED - Analysis Report

Company Number: 14721518

Analysis Date: 2025-07-20 16:36 UTC

1. Industry Classification

CM PUBS LIMITED operates within SIC code 56302, categorised as "Public houses and bars." This sector primarily involves the operation of establishments serving alcoholic beverages for consumption on premises. Key characteristics include reliance on customer footfall, location attractiveness, regulatory compliance (such as licensing laws), and sensitivity to consumer discretionary spending. The sector is typically fragmented with a mix of small independent operators and larger pub groups, influenced strongly by local market dynamics, consumer trends, and macroeconomic factors such as inflation and disposable income levels.

2. Relative Performance

As a micro-entity with an account reference date of 31 March 2024, CM PUBS LIMITED reported net liabilities of £46,550 and net current liabilities of £46,550, indicating that current liabilities exceed current assets significantly. The company employed an average of 30 persons during the period, which is notable for a micro-category entity (threshold ≤10 employees), suggesting some operational scale but possibly reflecting a small to medium operation. The negative net asset position is a concern in the context of typical industry benchmarks; successful pubs often maintain positive net assets supported by tangible fixed assets (property, equipment) and positive working capital to manage inventory and operational costs. Micro-entities in this sector commonly report modest profits or break-even positions, but negative equity indicates financial strain or investment in start-up costs not yet recouped.

3. Sector Trends Impact

The public houses and bars sector has experienced significant volatility in recent years due to shifting consumer preferences, increased competition from off-trade alcohol sales, and regulatory pressures such as increased taxes on alcoholic beverages and licensing restrictions. Post-pandemic recovery has been uneven, with many pubs facing rising operational costs from inflation, wage increases, and supply chain disruptions. However, there is a growing trend towards experiential offerings and diversification (e.g., food service, events) to drive customer engagement. Location-specific factors, such as being situated in a town like Glossop, influence footfall and revenue potential. For CM PUBS LIMITED, these trends imply a challenging operating environment with pressure to stabilize finances and build a loyal customer base amid competitive and cost pressures.

4. Competitive Positioning

CM PUBS LIMITED is a new entrant (incorporated March 2023) and a private limited company, positioning it as a small independent operator rather than a market leader or follower within larger pub groups. The company’s negative equity and current liabilities exceeding current assets signal liquidity risks and potential vulnerability relative to established competitors who typically have stronger balance sheets or diversified revenue streams. Strengths may include local market knowledge, personal management by a single director with direct operational experience (Bar Manager), and potential for community engagement. However, weaknesses include limited financial resources, exposure to working capital constraints, and lack of fixed assets recorded in the accounts, which may hinder the ability to invest in upgrades or marketing compared to sector peers.

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