SEER 365 LTD

Executive Summary

SEER 365 LTD is a growing small IT consultancy firm focused on developing proprietary software solutions, reflected in its significant intangible assets. While it shows positive equity growth and alignment with sector digital transformation trends, it faces working capital pressures and increased leverage that could impact liquidity. The company occupies a niche position, balancing early-stage growth with operational risks common in the competitive IT consultancy market.

SEER 365 LTD - Analysis Report

Company Number: 12922666

Analysis Date: 2025-07-20 11:16 UTC

1. Industry Classification
   SEER 365 LTD operates within the Information Technology (IT) consultancy sector, as identified by SIC code 62020, which covers IT consultancy activities. This sector is characterised by rapid technological innovation, a high degree of service customisation, and a reliance on skilled professional staff to deliver bespoke IT solutions and advisory services. Companies in this sector often invest heavily in intangible assets such as proprietary software development and intellectual property, reflecting the knowledge-driven nature of the business.

2. Relative Performance
   SEER 365 LTD is a private limited company classified as a small entity based on turnover and balance sheet size, given the Total Exemption Full filing status and the reported figures. Its financial statements for the year ending 2023 show net assets of £669k, which is an improvement from £362k in 2022, indicating growth in equity and presumably profitability or capital injection. The company holds significant intangible assets (£1.12m), mainly capitalised development costs, which is typical for IT consultancies focusing on software or digital product development.

However, the company reports net current liabilities of approximately £199k in 2023, worsening from a £103k deficit in 2022. This negative working capital position suggests some liquidity pressure in the short term, which is a risk factor in a sector where cash flow management is crucial due to project-based revenue recognition. The company's cash balance declined slightly, but debtors increased substantially, indicating higher accounts receivable that may impact cash conversion cycles.

Compared to typical industry metrics, SEER 365 LTD’s asset base and equity position are modest but positive for a company incorporated in 2020, reflecting early-stage growth. Many IT consultancy firms of similar size might have leaner balance sheets with less capitalised intangible assets, relying more on human capital rather than capital-intensive assets. The increase in finance lease liabilities (£395k secured) also highlights a leveraged position that should be closely managed.

3. Sector Trends Impact
   The IT consultancy sector currently experiences strong demand driven by digital transformation initiatives across industries, cloud adoption, cybersecurity needs, and data analytics. These trends provide growth opportunities for companies like SEER 365 LTD that invest in developing proprietary software and consultancy services. The capitalisation of development costs suggests SEER 365 is building unique technology solutions, positioning itself to capitalise on these trends.

However, the sector is also highly competitive with price pressure from larger global consulting firms and agile niche players. Additionally, talent acquisition and retention remain challenging, given the shortage of skilled IT professionals. SEER 365’s reported increase in employee numbers (average 29 in 2023 vs 24 in 2022) aligns with sector growth but also increases operational costs. Economic uncertainty and inflationary pressures could affect client budgets and payment cycles, potentially impacting working capital and receivables management, as reflected in the company’s financials.

4. Competitive Positioning
   SEER 365 LTD appears to be a growing small player in the IT consultancy niche, leveraging its intangible assets to differentiate through technology development. Its strengths include a solid equity base growth and investment in proprietary intangible assets, which can create competitive barriers and provide scalable revenue streams beyond pure consultancy hours.

Weaknesses include its working capital deficit and increased financial leverage through finance leases, which could constrain financial flexibility. The net current liabilities position is a concern relative to many peers that maintain positive working capital to ensure operational liquidity. The company also lacks an audit, which is common in small entities but may limit transparency for larger clients or investors.

In comparison to typical industry norms, SEER 365 is in the early scaling phase, balancing growth investments with cash flow challenges. Its ability to manage receivables, control costs, and convert its intangible assets into profitable contracts will be critical to consolidating its competitive position.