ANDREW MORLEY BUSINESS CONSULTANCY LTD

Executive Summary

Andrew Morley Business Consultancy Ltd is a medium-sized, diversified management consultancy outperforming many peers with solid profitability and strong liquidity. Its strategic expansion into debt recovery and sustainable sectors like roofing and solar positions it well amid current industry trends emphasizing resilience and sustainability. While facing typical sector challenges such as skilled labour shortages and cost inflation, the company maintains a robust competitive position through diversified offerings and prudent financial management.

ANDREW MORLEY BUSINESS CONSULTANCY LTD - Analysis Report

Company Number: 13546607

Analysis Date: 2025-07-29 18:27 UTC

1. Industry Classification
   Andrew Morley Business Consultancy Ltd operates primarily within SIC code 70229, which corresponds to "Management consultancy activities other than financial management." This sector typically involves providing advisory services on business strategy, operational improvement, organisational change, and specialised consultancy unrelated to direct financial management. Key characteristics include a reliance on intellectual capital, project-based revenues, and often a client portfolio spanning multiple industries. The sector is competitive with a mix of large multinational consultancies, mid-sized firms, and specialist boutiques. Growth drivers include digital transformation demands, regulatory changes, and increasing complexity in business environments.

2. Relative Performance
   In terms of financial size, Andrew Morley Business Consultancy Ltd is a medium-sized enterprise with turnover reported at approximately £41.2 million in the year ended September 2024, down from £49.7 million in the prior 13-month period. This turnover level positions the company well above typical small consultancies (which often turnover under £10 million) but below the largest UK consultancies, which can generate revenues in hundreds of millions to billions. Profit before tax of £5.15 million reflects a healthy operating margin of around 12.5%, which is respectable in management consultancy where margins commonly range from 10% to 20% depending on firm model and sector focus. The company also exhibits strong liquidity with cash balances nearing £6 million, indicating solid working capital management. Compared to industry norms, the company shows competitive profitability and strong asset backing, with net assets increasing to over £8.7 million.

3. Sector Trends Impact
   The management consultancy sector is currently influenced by several key trends: digital and IT transformation advisory remains in high demand, sustainability and ESG consulting are growing focus areas, and companies increasingly require expertise in navigating post-pandemic supply chain and workforce challenges. Andrew Morley Business Consultancy’s diversification into debt recovery services and investments into roofing and solar sectors demonstrates strategic adaptation to market dynamics, especially given the construction industry's current volatility and housing market pressures. Challenges in recruitment of skilled operatives and material cost inflation, noted as principal risks, are also sector-wide issues impacting consultancy firms that support construction and infrastructure clients. The company's ability to maintain and grow market share in these areas amid economic headwinds is indicative of strategic resilience.

4. Competitive Positioning
   Andrew Morley Business Consultancy Ltd functions as a mid-sized player with a diversified business model that includes management consultancy, debt recovery, and strategic investments in roofing and solar businesses. This diversification is a strength, providing multiple revenue streams and exposure to growth sectors such as renewable energy. The firm’s strong cash position and increasing net assets enhance its competitive stance by enabling investment in talent and technology. However, the slight decline in turnover and profit before tax from the previous year signals a need for vigilance in operational efficiency and client retention. Compared to large consultancies, it likely competes more on niche expertise and personalised service rather than scale. The company's strategic focus on sustainability aligns well with evolving client demands, providing a competitive edge. Risks related to operational capacity and cost pressures are typical in this sector and require ongoing management.