NO 221 LIMITED

Executive Summary

NO 221 Limited occupies a micro-scale position in the UK licensed restaurant market with a lean operational footprint and stable leadership. However, recent financial deterioration and workforce reduction highlight urgent liquidity and operational challenges. To reposition for growth, the company must focus on stabilizing its financial base, optimizing operations, and leveraging local market opportunities while mitigating risks inherent to its competitive and capital-constrained environment.

NO 221 LIMITED - Analysis Report

Company Number: 12682098

Analysis Date: 2025-07-29 14:34 UTC

1. Market Position
   NO 221 Limited operates within the licensed restaurant sector in the UK, classified under SIC code 56101. As a private limited company established in 2020, it is a micro entity in terms of financial size and scale. The company serves a niche local market from its base in Sutton Coldfield, positioning itself as a small player in the highly competitive hospitality industry.

2. Strategic Assets
   Key strengths include directorial stability with founding directors actively involved since inception, which supports consistent leadership and strategic focus. The company’s operational model as a licensed restaurant provides a tangible service asset, potentially benefitting from location-based customer loyalty. However, the company currently holds minimal fixed assets and a modest share capital of £100, indicating a lean asset base. The financial history reveals an ability to initially manage positive working capital and shareholder funds, reflecting some operational effectiveness prior to the recent downturn.

3. Growth Opportunities
   Given the company’s micro scale and recent financial challenges, growth opportunities lie in stabilizing and expanding its customer base through enhanced marketing and service differentiation. Potential expansion could include diversifying offerings or leveraging digital channels for increased engagement. Strategic partnerships or local community integration could also elevate brand presence. Additionally, cost optimization and operational efficiencies could improve margin and financial sustainability, enabling reinvestment in growth initiatives.

4. Strategic Risks
   The company faces considerable financial risk as evidenced by the sharp decline in net current assets and shareholders’ funds from £40,395 positive in 2023 to a negative £31,833 in 2024. This signals liquidity pressure and potential solvency concerns. The reduction in average employees from 20 to 2 suggests operational downsizing or distress, which may impair service capacity and market competitiveness. The absence of significant fixed assets limits collateral for financing, restricting capital access for growth. Furthermore, the highly competitive licensed restaurant industry, susceptible to economic cycles and consumer discretionary spending, presents ongoing market risks.