FIRE PIZZA LTD

Executive Summary

FIRE PIZZA LTD operates as a micro-sized player in the highly competitive UK take-away food sector, showing significant investment in fixed assets but facing increasing short-term liabilities that may impact liquidity. While growth in net assets indicates some financial strengthening, reduced current assets and workforce downsizing highlight operational challenges typical in a post-pandemic market environment. To sustain growth, the company will need to manage working capital more effectively while leveraging its asset base to meet evolving consumer demands.

FIRE PIZZA LTD - Analysis Report

Company Number: 12734104

Analysis Date: 2025-07-20 18:34 UTC

1. Industry Classification
   FIRE PIZZA LTD operates within SIC Code 56103, classified as "Take-away food shops and mobile food stands." This sector is a segment of the broader foodservice industry, characterized by quick-service, often delivery- or pickup-focused operations. Key characteristics of this sector include high competition, thin margins, reliance on location and convenience, and sensitivity to consumer trends such as demand for fast, affordable, and quality food options. The sector typically involves micro to small enterprises, with a growing trend towards online ordering and delivery platforms.

2. Relative Performance
   As a micro-entity, FIRE PIZZA LTD is on the smaller end of the spectrum within the take-away food sector. The company’s financials show a growth trajectory in fixed assets, increasing from approximately £31.8k in 2020 to £109.5k in 2024, indicating investment in property, plant, or equipment. However, current assets decreased notably from £40.9k in 2023 to £9.5k in 2024, while current liabilities nearly doubled from £122k to £281k, resulting in negative net current assets of £262k in 2024 compared to a positive £70.8k in 2023. This shift suggests increasing short-term obligations that may strain liquidity. Net assets improved to £183.8k in 2024 from £94.2k in 2023, potentially due to reclassification or long-term funding, but the balance sheet shows creditors falling due after more than one year (£24k) and increased accruals, indicating some reliance on deferred payments. The average number of employees decreased from 8 to 5, which may reflect operational downsizing or efficiency measures. Compared to typical industry micro-entities, which often maintain tighter control over short-term liabilities to avoid cash flow issues, FIRE PIZZA LTD’s increasing current liabilities could be a concern.

3. Sector Trends Impact
   The take-away food sector has been influenced strongly by consumer shifts toward online ordering, third-party delivery services, and demand for healthier or specialty food options. Additionally, inflationary pressures on food and labor costs and regulatory compliance (e.g., food safety, hygiene) affect operational costs. The COVID-19 pandemic accelerated digital adoption but also heightened competition and price sensitivity among consumers. FIRE PIZZA LTD, incorporated in 2020 during the pandemic, likely capitalized on increased take-away demand but now faces challenges as the sector stabilizes and competition intensifies. Rising fixed asset investment suggests a commitment to operational capacity, but the drop in current assets and rise in current liabilities could indicate cash flow pressures, possibly from supply chain issues or increased working capital needs typical in the sector.

4. Competitive Positioning
   FIRE PIZZA LTD appears to be a niche or small-scale player within the take-away segment, given its micro-entity size and limited employee base. Strengths include growing fixed asset investment, which may enhance production capacity or quality, and a stable equity base with shareholder funds increasing over recent years. However, weaknesses include a significant increase in short-term liabilities and a shrinking workforce, which may impact service capacity and operational agility. The company’s financial profile contrasts with more established competitors who often maintain balanced current ratios and larger working capital buffers to manage volatility in supply and demand. The company’s location in Southall, Middlesex, offers access to a diverse urban market but also exposes it to intense local competition from both independent and chain operators.