BLAKELY SCOTT LIMITED

Executive Summary

Blakely Scott Limited operates as a small, niche player in the UK employment placement agency sector, facing typical liquidity and working capital challenges common among emerging recruitment firms. While demonstrating increased business activity, indicated by rising debtors, it contends with tight cash reserves and reliance on director funding, which limits its competitive positioning against larger, financially robust agencies. Sector trends towards flexible work and digital recruitment present both opportunities and competitive pressures that will require strategic focus to capitalize on.

BLAKELY SCOTT LIMITED - Analysis Report

Company Number: 13312390

Analysis Date: 2025-07-20 14:07 UTC

1. Industry Classification
   Blakely Scott Limited operates primarily in the sector classified under SIC code 78109, which corresponds to "Other activities of employment placement agencies." This sector is part of the broader recruitment and employment services industry. Key characteristics of this sector include providing temporary and permanent staffing solutions, candidate sourcing, and placement services across various client industries. Companies in this segment typically generate revenue through fees charged for successful placements or temporary staffing hours provided.

2. Relative Performance
   Blakely Scott Limited is a relatively young private limited company incorporated in 2021 and classified as a small entity based on its filing status (Total Exemption Full). Its financials show modest scale with net assets declining from £374 in 2023 to £114 in 2024, alongside net current liabilities of approximately £1,206 in 2024, indicating tight working capital and liquidity pressures. Debtors have more than doubled year-on-year from around £39,674 to £87,657, which may suggest increased sales activity but also potential collection risks. Cash on hand is minimal (£102 in 2024), which is below typical industry norms where liquidity is crucial for operational flexibility. The company’s small size and limited equity base contrast with larger recruitment firms that often report stronger balance sheets and positive working capital. Average employee count has decreased from 5 to 3, indicating possible operational downsizing or efficiency measures.

3. Sector Trends Impact
   The employment placement sector is sensitive to macroeconomic cycles, with demand closely tied to labour market conditions and economic confidence. Post-pandemic recovery and ongoing shifts towards flexible work arrangements continue to reshape demand for temporary staffing solutions. Digitization and automation in recruitment processes are increasingly important, alongside compliance with evolving labour regulations. The sector faces competitive pressure from online recruitment platforms and specialist niche agencies. For a small player like Blakely Scott Limited, capturing market share can be challenging amid these dynamics, especially without significant capital or technological investment. Additionally, the increase in debtors and tax liabilities may reflect delayed client payments or cyclical cash flow constraints commonly experienced in this sector.

4. Competitive Positioning
   Blakely Scott Limited appears to be a niche or follower player rather than a market leader. Its financial constraints, highlighted by negative net current assets and minimal cash reserves, suggest limited scale and financial resilience compared to established recruitment agencies that typically maintain stronger liquidity and larger capital bases. The company’s reliance on director advances (over £57,000 outstanding) indicates external funding is needed to support operations, a common scenario for smaller firms in this industry but one that may limit growth opportunities. The decrease in staff count may reflect efforts to control costs in a competitive environment. However, the company’s active website presence and ongoing compliance with filing deadlines demonstrate operational continuity and regulatory adherence, which are positives in this sector. To improve competitiveness, Blakely Scott Limited would benefit from strengthening its working capital management and possibly leveraging technology to enhance recruitment efficiency.