FLAMINGO 1 LTD

Executive Summary

FLAMINGO 1 LTD operates as a micro-scale unlicensed café in a highly competitive and cost-sensitive sector. Its financial profile reveals constrained liquidity and declining equity, reflecting challenges typical for small hospitality businesses amid rising operational costs and market uncertainties. While its size allows nimbleness, strengthening working capital and adapting to evolving consumer trends will be key to sustaining competitiveness in the dynamic UK café market.

FLAMINGO 1 LTD - Analysis Report

Company Number: 12946423

Analysis Date: 2025-07-20 14:17 UTC

1. Industry Classification
   FLAMINGO 1 LTD operates within the SIC code 56102, classified as "Unlicenced restaurants and cafes." This sector is part of the broader hospitality and food service industry, characterised by high competition, low barriers to entry, and sensitivity to consumer discretionary spending. Typically, businesses in this sector are small or micro enterprises focusing on food and beverage provision without alcohol licensing. Key characteristics include reliance on foot traffic, local customer base, and operational efficiency to manage narrow profit margins.

2. Relative Performance
   As a micro-entity, FLAMINGO 1 LTD operates at the smallest scale within the sector, with minimal filing requirements and a single employee reported in the latest accounts. The company’s net assets have declined from £16,954 in 2023 to £7,707 in 2024, indicating a reduction in equity and possibly financial strain. Current liabilities remain significantly higher than current assets (£11,292 liabilities vs. £1,600 assets in 2024), which may suggest liquidity challenges or working capital constraints compared to typical small-scale cafes that often aim to maintain positive working capital for day-to-day operations. The share capital is nominal (£1), which is typical for micro businesses but indicates limited equity financing.

3. Sector Trends Impact
   The unlicensed restaurant and café sector has faced fluctuating demand influenced by post-pandemic consumer behaviour shifts, inflationary pressures on food costs, and rising labour expenses. Increasing preferences for convenience, health-conscious menus, and digital ordering platforms have reshaped competitive dynamics. Micro businesses like FLAMINGO 1 LTD must navigate these trends with limited resources, often struggling to invest in technology or marketing compared to larger peers. Additionally, supply chain disruptions and energy cost spikes in recent years have put extra pressure on margins in this sector.

4. Competitive Positioning
   FLAMINGO 1 LTD appears to be a niche micro player within the local café market in Leeds, with a very small operational footprint (one employee). Its financials suggest limited capital reserves and potential vulnerability to cash flow shocks, a common issue for micro entities in hospitality. Strengths may include agility and local market knowledge, but weaknesses include limited scale economies, thin equity base, and high relative liabilities. Compared to industry norms, the company’s declining net assets and net current asset position below liabilities indicate relative financial fragility in a sector where maintaining liquidity is critical due to seasonal and demand volatility.