PAGARE CONSULTING LTD

Executive Summary

Pagare Consulting Ltd is a recently established micro consultancy positioned within the UK management consultancy sector as a niche, small-scale player. Its financial profile reflects typical start-up characteristics with modest assets and controlled liabilities, aligned with sector norms for emerging firms. While the company benefits from agility and focused leadership, it faces competitive pressures from larger firms and must strategically leverage its niche positioning to build market presence amid evolving industry trends.

PAGARE CONSULTING LTD - Analysis Report

Company Number: 14972413

Analysis Date: 2025-07-20 18:45 UTC

1. Industry Classification
   Pagare Consulting Ltd operates in the management consultancy sector, specifically under SIC Code 70229, which covers "Management consultancy activities other than financial management." This sector typically involves providing strategic, operational, and organisational advice to businesses across a variety of industries. Key characteristics include a reliance on skilled human capital, relatively low fixed asset intensity, and revenue generation primarily through professional services fees.

2. Relative Performance
   As a newly incorporated company (June 2023) with its first financial year ending June 2024, Pagare Consulting Ltd is a micro to small enterprise. The financials show modest fixed assets (£34,212, comprising primarily motor vehicles) and current assets (£40,108) with net current assets of £6,526. The company has a modest net asset position of £6,238 and shareholders' funds of £6,229, reflecting early-stage capitalization. The company’s liabilities include a significant loan (£34,500) falling due after more than one year, indicating initial financing to support asset acquisition or working capital. The company employs 2 people including the director, aligning with typical staffing levels for micro consultancies.

Compared to industry norms, where management consultancies often have minimal tangible fixed assets and emphasize human capital, this company’s fixed asset base (motor vehicles) is somewhat atypical but may reflect the director’s operational model. Revenue and profit figures are not disclosed, but the absence of audit and reliance on small company exemptions is standard for micro-enterprises in this sector. Overall, the company fits within the lower scale of the consultancy market in terms of size and financial metrics.

3. Sector Trends Impact
   The UK management consultancy industry is influenced by digital transformation, increasing demand for specialist advisory services in technology, compliance, and sustainability, as well as economic cycles affecting client budgets. The shift towards remote consulting and flexible service offerings has lowered barriers to entry, increasing competition but also enabling niche players. Given Pagare Consulting Ltd’s recent formation and small scale, it is positioned to be agile and responsive to client needs but may face challenges in scaling without broader service offerings or larger human capital investment.

Further, the ongoing economic uncertainties post-pandemic, inflationary pressures, and geopolitical risks have made businesses more cautious with consultancy spend, often favouring firms that demonstrate clear ROI or sector-specific expertise. This dynamic favors consultancies that can adapt quickly and offer differentiated value propositions.

4. Competitive Positioning
   Pagare Consulting Ltd is clearly a niche micro player in the management consultancy sector. Strengths include a lean operational structure and potentially lower overheads. The director’s substantial control (75-100% shareholding and voting rights) suggests centralized decision-making, which may speed responsiveness but could limit diversity of expertise.

The company’s financial structure, with low equity and external loans, reflects a typical start-up financing profile but may constrain growth until profitability and cash flow improve. Compared to more established consultancies, Pagare Consulting Ltd lacks scale, brand recognition, and extensive client portfolios. However, its small size may allow it to carve out specialized niches or local markets.

In terms of weaknesses, the relatively high level of debt relative to net assets could pose liquidity risks if revenues do not materialize as expected. The modest asset base and workforce suggest limited capacity for large or complex projects. To compete effectively, the company would need to leverage specialized knowledge, build strong client relationships, and possibly expand its human capital base.