NICHOLAS PUGH DESIGN CONSULTANT LTD

Executive Summary

NICHOLAS PUGH DESIGN CONSULTANT LTD operates as a niche micro-entity within the specialised design sector, consistent with industry norms for small, director-led consultancies. Recent financials reveal a deterioration in net assets and working capital, which contrasts with the generally stable performance expected in this sector. Market pressures such as increased competition and economic uncertainty may be contributing factors, highlighting the importance of improved liquidity management to sustain competitive standing.

NICHOLAS PUGH DESIGN CONSULTANT LTD - Analysis Report

Company Number: 13148764

Analysis Date: 2025-07-29 14:07 UTC

1. Industry Classification
   NICHOLAS PUGH DESIGN CONSULTANT LTD operates under SIC code 74100, categorized as "specialised design activities." This sector primarily comprises small-scale design consultancies providing bespoke design services across various disciplines such as graphic, industrial, or product design. These firms typically emphasize creative expertise and client-specific solutions, often characterized by micro or small business structures due to the project-based nature of their work and limited fixed assets.

2. Relative Performance
   The company is classified as a micro-entity with minimal turnover and balance sheet size, consistent with the typical profile of specialised design consultancies in the UK. However, its net asset position has deteriorated from a positive £2,386 in the previous two years to a negative £413 as of 31 March 2024. This decline contrasts with the general expectation in the sector where stable or modestly growing net assets are common, particularly for sole director-run consultancies with low overheads. The decline in net current assets, driven by an increase in current liabilities from £523 to £2,937, suggests increased short-term financial obligations, which might indicate cash flow management challenges or increased operational expenses.

3. Sector Trends Impact
   The specialised design sector is influenced by a few key trends: digital transformation increasing demand for innovative design solutions, rising competition from freelance platforms, and economic fluctuations impacting client budgets for consultancy services. The micro-business model is vulnerable to market volatility and payment delays, which may put pressure on working capital—as potentially reflected in this company's recent net current liabilities. Additionally, the shift toward remote working and digital collaboration tools has lowered barriers to entry but also heightened competition among consultants. Economic uncertainty, including inflationary pressures on business costs, may further strain small consultancies’ financial resilience.

4. Competitive Positioning
   As a micro-entity with a single director and minimal share capital (£1.00), NICHOLAS PUGH DESIGN CONSULTANT LTD is clearly a niche player in the specialised design activities sector. Its strengths likely include agility, personalized client service, and low fixed costs. However, the recent financial position signals potential weaknesses in liquidity and capital structure compared to peers who maintain positive net assets and stronger working capital. The lack of an audit and reliance on micro-entity accounting standards is typical for firms of this size but limits transparency for potential clients or investors. To strengthen its competitive position, addressing rising short-term liabilities and improving cash flow management would be crucial.