CHANGE MANAGEMENT & LEAN CONSULTANCY LIMITED

Executive Summary

Change Management & Lean Consultancy Limited operates as a micro-sized niche player in the UK management consultancy sector, focusing on Lean and change management services. While the sector benefits from ongoing demand for operational efficiency consulting, this company experienced a notable financial decline in 2024, with net liabilities replacing previous equity, indicating cash flow and working capital challenges. Its small scale and financial volatility position it as vulnerable relative to more established competitors, emphasizing the need for strategic financial and client portfolio management to sustain and grow in a competitive market.

CHANGE MANAGEMENT & LEAN CONSULTANCY LIMITED - Analysis Report

Company Number: 12521332

Analysis Date: 2025-07-20 12:04 UTC

1. Industry Classification

Change Management & Lean Consultancy Limited operates primarily within the UK management consultancy sector, classified under SIC codes 70229 ("Management consultancy activities other than financial management") and 96090 ("Other service activities not elsewhere classified"). This sector is characterized by providing expert advisory services focused on organisational change, process improvement, and operational efficiency, often leveraging methodologies such as Lean management. The industry is fragmented, with a mix of large consultancies and numerous micro to small firms serving niche or local markets.

2. Relative Performance

As a micro-entity, the company’s financial scale is modest, with a share capital of only £2 and an average headcount of two employees as of the latest financial year. The company reported a net liability position of £4,262 as at 31 March 2024, a significant decline from net assets of £10,962 the previous year. This reversal reflects a deterioration in working capital driven by a sharp reduction in current assets (£3,462 in 2024 vs. £26,675 in 2023) combined with sustained current liabilities (£10,580). Fixed assets increased slightly but remain low (£3,829). Such financial volatility is not unusual among micro consultancies, which often face cash flow pressures and limited capital buffers compared to larger sector peers.

3. Sector Trends Impact

The management consultancy sector in the UK has experienced robust demand driven by digital transformation, operational efficiency drives, and change management initiatives post-pandemic. Lean consultancy services remain relevant as organisations seek cost reductions and process optimisation. However, micro consultancies face challenges including competition from larger firms offering integrated digital and strategic services, pricing pressures, and client retention difficulties. The economic uncertainty and inflationary pressures affecting UK businesses can also delay or reduce consultancy spending, impacting smaller players disproportionately due to limited diversification and financial resilience.

4. Competitive Positioning

Change Management & Lean Consultancy Limited occupies a niche and micro-scale position within the broader management consultancy landscape. Strengths include a focused service offering in Lean and change management, which are well-regarded specialties with ongoing demand. However, the company’s financial position indicates vulnerability, with recent losses eroding equity and working capital deficits, which may constrain operational flexibility and investment in growth initiatives. Compared to typical sector norms where even small consultancies maintain positive net assets and stable cash flows, this entity’s current financial health suggests operational and perhaps client acquisition or retention challenges. The small team size and limited fixed assets imply dependency on a few key personnel and a service model reliant on intellectual capital rather than physical infrastructure.