PUBLIC PURPOSE LTD

Executive Summary

Public Purpose Ltd is a niche, boutique management consultancy specialising in public purpose advisory services, demonstrating strong liquidity and equity positions relative to its size. Operating with minimal staff and assets, it benefits from trends favouring specialised, mission-driven consulting amid evolving public sector priorities. While its focused expertise and cash reserves are competitive advantages, scalability and diversification remain challenges typical for micro consultancies in this sector.

PUBLIC PURPOSE LTD - Analysis Report

Company Number: 13122816

Analysis Date: 2025-07-20 12:15 UTC

1. Industry Classification
   Public Purpose Ltd operates primarily in the sector classified under SIC code 70229, which corresponds to "Management consultancy activities other than financial management." This sector typically involves advising organisations on business strategy, operational improvements, organisational change, and public policy consulting, excluding financial management services. Characteristics of this sector include a high reliance on intellectual capital, strong emphasis on expert knowledge, project-based revenue streams, and often a small to medium enterprise (SME) structure with relatively low fixed assets but significant human capital.

2. Relative Performance
   As a private limited company incorporated in 2021, Public Purpose Ltd is a micro to small-scale management consultancy based on financial metrics and workforce size. With only one employee (the director) and minimal tangible fixed assets (£6,233 in 2024), it fits the profile of a boutique consultancy focused on specialised, high-value advisory services. The company reported net current assets of £549,047 and shareholders’ funds of £555,280 for the year ending March 2024, suggesting a solid liquidity position and positive equity base with no debt. Cash holdings remain robust at £690,416, representing a healthy cash buffer relative to current liabilities of £170,422. Compared to typical industry benchmarks where consultancies often operate with lean balance sheets and rely on receivables, Public Purpose Ltd demonstrates prudent working capital management with a low debtor balance (£29,053) in 2024, a significant reduction from prior years, indicating efficient collections or a shift in business model.

3. Sector Trends Impact
   The management consultancy sector in the UK has seen growing demand for services linked to digital transformation, sustainability, and public sector innovation, particularly post-pandemic. Consultancies specialising in public purpose or mission-driven projects benefit from increased government and institutional focus on social value and impact measurement. The trend towards remote consulting and virtual delivery models fits well with a small, agile consultancy setup like Public Purpose Ltd. However, competitive pressures from larger firms and the need to demonstrate measurable outcomes can challenge small players. Economic uncertainties and public sector budget constraints may affect client spending patterns, but niche consultancies aligned with public policy and innovation agendas often maintain resilience.

4. Competitive Positioning
   Public Purpose Ltd occupies a niche within the broader management consultancy industry, focusing on public purpose and potentially economic or innovation policy advising, as suggested by the background of its sole director, Prof Mariana Mazzucato, a well-known economist. The company’s small scale, limited headcount, and minimal fixed assets differentiate it from larger consultancies that have broader service offerings and larger teams. Its strengths lie in specialised expertise, strong cash reserves, and a focused business model that enables flexibility and low overhead. However, reliance on a single principal consultant may limit scalability and client diversification, which is a typical risk for boutique consultancies. The dividend payments (£550,000 in 2024) to the principal shareholder indicate strong profitability or cash generation relative to the company's size, which is notable compared to sector peers where reinvestment in talent or technology is common.