QUARTER & FORGE LTD

Executive Summary

Quarter & Forge Ltd operates as a small, niche architectural firm within a sector characterized by project-based revenues and sensitivity to construction market cycles. Its financials reveal a contraction in net assets and liquidity, positioning it below typical medium-sized industry players. Facing sector headwinds such as inflation and evolving client demands, the company’s modest scale and resource constraints define its competitive challenges and opportunities.

QUARTER & FORGE LTD - Analysis Report

Company Number: 13257042

Analysis Date: 2025-07-29 14:57 UTC

1. Industry Classification
   Quarter & Forge Ltd operates within the Architectural activities sector, classified under SIC code 71111. This sector encompasses businesses engaged in providing architectural design, consultancy, and related professional services. Key characteristics of this sector include a reliance on skilled professionals, project-based revenue streams, and sensitivity to construction industry cycles and real estate market conditions. Firms typically range from small boutique practices to large multidisciplinary consultancies.

2. Relative Performance
   Quarter & Forge Ltd is a micro to small-sized private limited company by turnover and balance sheet size, based on its modest financial figures and single-employee average headcount. Its net assets decreased from £12,726 in 2023 to £4,857 in 2024, indicating a contraction in financial strength. The company holds low fixed assets (£125 in 2024), typical for architectural firms which rely more on intellectual capital than physical assets. It maintains positive net current assets (£4,732), suggesting adequate short-term liquidity, although this dropped substantially from the prior year (£12,476). Shareholders’ funds declined correspondingly, reflecting accumulated losses or withdrawals. Overall, its scale and financial footprint are modest compared to typical medium or large architecture firms, which often show higher turnover, larger equity bases, and more employees.

3. Sector Trends Impact
   The architectural sector is currently influenced by several market dynamics:

• Post-pandemic construction rebounds and infrastructure investments have driven demand for design services.
• However, inflationary pressures and rising interest rates are slowing new developments, potentially constraining project pipelines.
• Increasing emphasis on sustainability and green design creates both challenges and opportunities for innovative firms.
• Digital transformation and BIM (Building Information Modelling) adoption are reshaping workflows and client expectations.
  For Quarter & Forge Ltd, being a small player means it may be more vulnerable to project volatility and less able to absorb economic shocks. Its limited asset base and personnel suggest a niche or bespoke service approach, possibly focusing on local or specialized projects. The company’s recent financial contraction could reflect sector headwinds or internal scaling challenges.

4. Competitive Positioning
   As a small, privately held architectural firm, Quarter & Forge Ltd appears to be a niche player rather than an industry leader or large follower. Strengths include low overhead (single employee, low fixed assets) and presumably agile operations. Weaknesses relate to reduced net assets and liquidity in the latest year, which might limit capacity for new projects or investment in technology. The significant portion of current liabilities attributable to corporation tax and VAT indicates a tax burden that must be carefully managed. Compared to sector norms, larger competitors benefit from diversified service offerings, broader client bases, and stronger balance sheets. To enhance competitive positioning, Quarter & Forge Ltd may need to stabilize finances, expand client relationships, and leverage digital tools to improve service delivery.