SADAQA LIMITED

Executive Summary

Sadaqa Limited operates as a micro-scale wholesaler in the food and beverage sector, with financials reflecting a very small and lean operation. While the company is far below typical industry scale and asset levels, its size could provide agility in a competitive, margin-sensitive market undergoing supply chain and inflationary pressures. However, limited capital and resources restrict its ability to compete with larger, more established wholesalers.

SADAQA LIMITED - Analysis Report

Company Number: 13132594

Analysis Date: 2025-07-20 12:48 UTC

1. Industry Classification
   Sadaqa Limited operates primarily within the SIC code 46390, which encompasses non-specialised wholesale of food, beverages, and tobacco. This sector is characterized by the distribution of a broad range of consumable goods to retailers, catering businesses, and other wholesale customers. Key industry traits include tight margins, significant competition, reliance on supply chain efficiency, and sensitivity to commodity price fluctuations and consumer demand trends.

2. Relative Performance
   As a micro-entity with minimal financial metrics reported, Sadaqa Limited’s balance sheet shows net current assets of £1,818 and net assets of the same amount as of January 31, 2024. This is consistent with a very small-scale operation, reflected further by the absence of employees beyond directors and low levels of current assets and liabilities. Compared to typical wholesale companies in the UK, which often report turnovers in the millions and employ dozens or hundreds of staff, Sadaqa’s size and financial footprint are modest. The company’s share capital is nominal (£2), indicating limited equity investment. Its net assets have decreased from £2,698 in 2023 to £1,818 in 2024, suggesting either operating losses, asset disposals, or withdrawals, which contrasts with more robust mid-sized or large wholesalers that aim for sustained asset growth and positive working capital trends.

3. Sector Trends Impact
   The wholesale food and beverage sector is currently influenced by multiple macro trends:

• Supply chain disruptions and increased logistics costs due to post-pandemic challenges and geopolitical tensions.
• Inflationary pressures affecting input costs and consumer prices, squeezing wholesale margins.
• Growing demand for sustainable and ethically sourced products, pushing wholesalers to adapt sourcing strategies.
• Technological adoption, including digital ordering platforms and inventory management systems, favoring companies with capital and scale to invest.
  Given Sadaqa Limited’s micro scale and limited financial resources, it likely faces challenges in leveraging technology and managing cost pressures effectively compared to larger competitors. However, its small size may allow flexibility and niche focus, if strategically leveraged.

4. Competitive Positioning
   Sadaqa Limited appears to be a niche micro-entity within the wholesale food and beverage sector rather than a market leader or significant follower. Its limited net assets and absence of employees indicate a business possibly in early development or operating on a very small scale, perhaps serving a local or specialized customer base. Strengths include low overhead and potential agility. Weaknesses include limited financial buffer, low scale economies, and minimal working capital, which can constrain purchasing power and operational resilience. Compared to typical sector players—often structured as medium or large entities with extensive supply chains and workforce—Sadaqa is not positioned to compete on volume or price but might exploit specific local or product niches if strategically focused.