CITY SAFETY MANAGEMENT LIMITED

Executive Summary

City Safety Management Limited operates as a small, niche management consultancy facing typical early-stage financial challenges, including low net assets and negative working capital, which are below industry norms. While the UK consultancy sector offers growth opportunities driven by digital and ESG trends, the company's current financial position limits its competitive agility. Strengthening liquidity and scaling client engagements will be critical for the company to improve its standing within the competitive consultancy market.

CITY SAFETY MANAGEMENT LIMITED - Analysis Report

Company Number: 13816059

Analysis Date: 2025-07-29 15:49 UTC

1. Industry Classification

City Safety Management Limited operates under SIC code 70229, which corresponds to "Management consultancy activities other than financial management." This sector typically includes firms providing advisory and strategic consulting services to businesses across various industries, excluding financial management consulting. Key characteristics of this sector include high labor intensity, reliance on skilled consultants, project-based revenue, and often variable client portfolios. The sector usually shows moderate capital intensity with investment in human capital and IT infrastructure rather than heavy fixed assets.

2. Relative Performance

As a private limited company incorporated in late 2021, City Safety Management Limited qualifies as a micro or small entity based on its financials. The company’s latest accounts (2024) show current assets of £4,895 against current liabilities of £12,710, resulting in negative net current assets of £7,815. Net assets stand at a nominal £103, down from £611 in 2023. Cash balances are low (£228), and the company’s tangible fixed assets increased to £9,775, reflecting some capital investment. The company has a very small equity base and negative working capital, which is atypical for a healthy management consultancy, as the sector generally maintains positive working capital to support project execution and operational flexibility. Compared to industry norms where profitability and positive net assets are expected by the third year of operation, this company’s financial position is weak and suggests either early-stage investment or operational challenges.

3. Sector Trends Impact

The UK management consultancy sector is currently influenced by digital transformation demand, increased outsourcing of specialized advisory services, and a focus on ESG (environmental, social, governance) consulting. Firms with agility and niche expertise have growth opportunities. However, competition is intense, and smaller consultancies often struggle to scale or maintain cash flow due to project payment delays and client concentration risks. Rising inflation and economic uncertainty post-pandemic have tightened client budgets, pressuring pricing and contract terms. City Safety Management Limited’s financials indicate limited liquidity, which may constrain its ability to capitalize on growth trends without additional financing or improved working capital management.

4. Competitive Positioning

City Safety Management Limited is a niche player, likely at the start-up or early growth phase, rather than an established leader in the UK management consultancy market. Its low net assets and negative working capital contrast with larger or more mature consultancies that usually maintain stronger balance sheets and positive cash flows. The increase in fixed assets may indicate investment in tools or equipment to support service delivery, which could be a competitive advantage if aligned with client needs. However, the small scale and financial fragility expose the company to risks such as inability to absorb project delays, limited bargaining power, and difficulties in attracting top consulting talent. Its ownership concentration with a single controlling individual suggests centralized decision-making but may limit access to broader strategic input or capital.