THE LEMON TREE THURNHAM LIMITED

Executive Summary

The Lemon Tree Thurnham Limited is a micro-sized entrant in the licensed restaurant sector, demonstrating a stable initial financial position with modest equity and positive working capital. Operating in a recovering yet cost-challenged hospitality market, it occupies a niche local position with leadership experience in hospitality. While its small scale limits competitive leverage, the company can capitalize on post-pandemic demand growth if it navigates input cost pressures and labour challenges effectively.

THE LEMON TREE THURNHAM LIMITED - Analysis Report

Company Number: 15169208

Analysis Date: 2025-07-20 19:06 UTC

1. Industry Classification
   The Lemon Tree Thurnham Limited operates within the "Licenced restaurants" sector, classified under SIC code 56101. This sector encompasses establishments primarily engaged in preparing and serving food and alcoholic beverages for consumption on the premises. Key characteristics include high customer service requirements, dependency on local consumer demographics, regulatory compliance concerning licensing and health standards, and sensitivity to economic cycles and discretionary spending.

2. Relative Performance
   As a micro-entity incorporated in late 2023, The Lemon Tree Thurnham Limited’s financials reflect an early-stage business profile. With fixed assets of £4,005 and net current assets of £42,040, the company shows a modest but positive working capital position, indicating initial liquidity adequacy. The shareholder funds equal £46,045, signifying the total equity base funded primarily by the owners. The average number of employees is 11, which is reasonable for a micro-sized licensed restaurant. Compared to typical industry metrics for licenced restaurants—where start-ups often operate with thin margins and require significant initial capital investment—the company’s balance sheet appears stable but limited in scale. Micro-entities in this sector often report losses or minimal profits in their first year due to start-up costs, though the absence of an income statement restricts detailed profitability assessment.

3. Sector Trends Impact
   The licensed restaurant sector in the UK is currently influenced by several notable trends:

• Post-pandemic recovery: Increased consumer confidence and return to on-premises dining have improved revenue prospects.
• Rising input costs: Inflationary pressures on food, beverage supplies, and energy costs squeeze margins.
• Labour market challenges: Recruitment and retention of skilled hospitality staff remain difficult, impacting service levels and operational costs.
• Sustainability and local sourcing: Growing consumer preference for sustainable, locally sourced ingredients drives menu innovation but may increase procurement costs.
• Regulation and licensing: Compliance with licensing laws and health & safety regulations continues to be a critical operational factor.
  For The Lemon Tree Thurnham Limited, these dynamics imply both opportunities for growth amid recovering demand and challenges in cost management and staff retention.

4. Competitive Positioning
   As a newly incorporated micro private limited company, The Lemon Tree Thurnham Limited is a niche player within the licensed restaurant sector, likely serving a localized market in Thornton Cleveleys, Lancashire. Strengths include:

• A small, manageable scale enabling agility in operations.
• Ownership by directors with hospitality backgrounds (noted by the director’s HND in Hospitality), which suggests relevant industry experience.
  Weaknesses and challenges include:
• Limited asset base and equity capital restricting expansion and buffer against market volatility.
• Modest scale compared to larger competitors who benefit from economies of scale, supply chain advantages, and brand recognition.
• Early-stage financials with no publicly available profitability data, typical for start-ups but adding uncertainty for competitive endurance.
  In comparison to industry norms, larger licensed restaurants or chains often have more substantial fixed assets, diversified revenue streams, and advanced operational systems. The Lemon Tree’s success will depend heavily on local market penetration, quality of service, and the ability to adapt to sector trends.