LOOP CONSULT LTD

Executive Summary

LOOP Consult Ltd is a micro-sized niche player in the UK management consultancy sector, currently exhibiting financial stress characterized by significant negative net assets and liquidity challenges. While typical of early-stage consultancies to face cash flow constraints, its financial position is weaker than industry norms for similar-sized firms. Sector trends toward digital advisory services and competitive pricing pressure present both challenges and opportunities for this company’s growth and market positioning.

LOOP CONSULT LTD - Analysis Report

Company Number: SC723639

Analysis Date: 2025-07-29 12:59 UTC

1. Industry Classification
   LOOP Consult Ltd operates within the management consultancy sector, specifically under SIC code 70229 – “Management consultancy activities other than financial management.” This sector encompasses firms providing strategic, operational, HR, and other advisory services excluding financial management consultancy. Key characteristics of this sector include a heavy reliance on human capital, relatively low fixed asset intensity, and variability in scale from micro to large consultancies. Most firms compete on expertise, reputation, and client relationships rather than capital investment.

2. Relative Performance
   As a micro-entity incorporated in 2022, LOOP Consult Ltd falls into the smallest size category with minimal filing requirements. Its financials show a sharp deterioration in net assets over three years: from positive shareholders’ funds of £4,143 in 2022 to a significant net deficit of £70,026 by the fiscal year ending February 2025. Current liabilities have ballooned from approximately £13.6k to £74.6k over this period, while current assets have decreased from £17.4k to £4.6k. Negative net current assets and shareholders’ funds indicate liquidity stress and potential solvency concerns. Compared to typical micro-enterprises in management consultancy, which often maintain positive working capital given low fixed costs, this financial position is weak.

3. Sector Trends Impact
   The UK management consultancy sector is broadly resilient but highly sensitive to economic cycles. Current trends include digital transformation consulting demand, increased competition from freelance consultants and boutique firms, and pressure on fees due to client budget constraints amid economic uncertainty. For a micro consultancy like LOOP Consult Ltd, particularly one apparently controlled by a parent group (Loopliv Group Ltd), these factors may constrain growth and profitability. The trend towards remote consultancy delivery impacts cost structures but also intensifies competition. The company’s increasing liabilities could reflect investment in client acquisition or operational costs not yet matched by revenues, a common challenge for startups in this space.

4. Competitive Positioning
   LOOP Consult Ltd is a niche micro player within management consultancy. Its governance structure, with two directors both serving as advisors, and control by a parent company suggests it may be positioned as a specialist advisory boutique or an internal consultancy arm. Financially, it currently lacks the capital strength and liquidity to compete aggressively with established small or medium consultancies, which typically maintain positive equity and stronger cash positions. The absence of fixed assets aligns with sector norms, but the high current liabilities relative to assets suggest reliance on short-term credit or delayed payables, a vulnerability in a sector where client payment terms can vary. Without profitable operations or external funding, this company may struggle to scale or sustain competitive service delivery.