Company Number: 13666965

Analysis Date: 2025-07-20 11:55 UTC

1. Industry Classification
   Jaspa Tea Nottingham Ltd operates within the UK hospitality sector, specifically categorized under SIC code 56102 — "Unlicensed restaurants and cafes." This sector is characterized by establishments serving food and beverages without a license to sell alcohol. Key industry features include high competition, sensitivity to consumer trends, relatively low margins, and significant reliance on foot traffic and location. The sector has been impacted in recent years by changing consumer preferences toward healthier options, increased demand for specialty and artisanal beverages, and the growing importance of online presence and delivery services.

2. Relative Performance
   Financially, Jaspa Tea Nottingham Ltd is a very small, relatively new private limited company incorporated in late 2021. The latest filed accounts to 31 October 2023 show a negative net asset position of approximately £235,000, indicating significant accumulated losses or funding shortfalls. Current liabilities (£348k) substantially exceed current assets (£35k), resulting in a net current liability position of about £313,000. This is a weak liquidity position compared to typical small hospitality operators, which usually maintain at least neutral working capital to manage day-to-day operations. The company has no reported cash at bank at the latest year-end, which is concerning for operational resilience. The average number of employees dropped to zero in 2023 from 10 in 2022, signaling possible operational scale-down or restructuring.

3. Sector Trends Impact
   The unlicensed cafe segment has faced several headwinds recently, including post-pandemic consumer behavior shifts, rising input costs (food, utilities, labor), and supply chain challenges. On the positive side, there is a growing consumer interest in specialty teas and artisan beverages, which aligns with Jaspa Tea’s likely product focus. However, the company’s financial distress suggests challenges in capitalising on these trends effectively, possibly due to limited scale, competition from established chains, and the need for significant capital investment to improve operations or marketing. Additionally, the sector is increasingly moving toward digital ordering and contactless payments, requiring investment that smaller players may find difficult to afford.

4. Competitive Positioning
   Jaspa Tea Nottingham Ltd appears to be a niche player within the highly fragmented cafe market. It is part of the Jaspa Tea Group Ltd, which owns 75-100% of the shares, suggesting it may be a regional or brand-specific outlet rather than a broad-scale operator. Compared to industry norms, the company’s financials reflect a precarious position: negative equity, high short-term liabilities, and no cash reserves suggest vulnerability to operational disruptions and limited capacity to invest in growth or innovation. The absence of employees in the latest year could indicate closure or a shift to a non-operational status, which is unusual for an active hospitality business. Stronger competitors in the sector typically maintain positive working capital, invest in customer experience, and leverage economies of scale. Jaspa Tea Nottingham Ltd’s current financial metrics and operational signals suggest it is struggling to establish a sustainable foothold in a competitive market.