SIX FORWARD (CA) LTD

Executive Summary

Six Forward (CA) Ltd is a small but financially stable specialist management consultancy focusing on capital allowances advisory within the UK market. The company demonstrates healthy liquidity and profitability for its early years, benefiting from sustained demand for technical tax consultancy services driven by regulatory complexity. While well-positioned within its niche, it faces typical challenges of scale and market presence compared to larger, diversified consultancies.

SIX FORWARD (CA) LTD - Analysis Report

Company Number: 14518506

Analysis Date: 2025-07-20 17:15 UTC

1. Industry Classification
   Six Forward (CA) Ltd operates within the sector classified under SIC code 70229, which corresponds to "Management consultancy activities other than financial management." This sector typically includes firms providing specialist advisory services in areas such as business strategy, operational improvement, and, in this case, capital allowances consultancy. The sector is characterised by knowledge-intensive services, reliance on expert personnel, and a client base often composed of accounting firms, corporate finance teams, and tax professionals. Consultancy firms in this niche often leverage specialist technical expertise to help clients optimise tax relief through capital allowances claims, differentiating themselves from broader management consultancies focusing on financial management or general business strategy.

2. Relative Performance
   As a private limited company incorporated recently in December 2022, Six Forward (CA) Ltd is classified as a small entity under UK Companies House thresholds, given its modest share capital (£100) and current financials. The company shows a robust liquidity position with net current assets of £50,077 as of the 2024 year-end and cash balances exceeding £180,000, indicating healthy short-term financial stability. Compared to typical small management consultancies, which often operate with lean working capital, Six Forward’s net assets of approximately £50,671 and shareholders' funds of £50,571 suggest prudent capital management and limited reliance on external funding. The company’s turnover is not disclosed here, but the growth in debtors from £61k in 2023 to over £106k in 2024 indicates increasing business activity or client engagements.

The reported dividend payments totaling £142,100 in 2024, up significantly from £72,000 in 2023, suggest profitability and positive cash flow generation, which is notable for a company only two years into operation. This level of dividend distribution relative to net assets indicates strong earnings performance relative to equity. However, the slight reduction in net assets from £65,172 in 2023 to £50,671 in 2024 could reflect increased dividend payouts or other expenses outpacing asset growth.

3. Sector Trends Impact
   The management consultancy sector, specifically within capital allowances advisory, is influenced by several market dynamics:

• Tax Policy and Regulatory Changes: Frequent updates in UK capital allowances rules and tax legislation create a demand for expert consultancy to help clients maximise reliefs, benefiting specialist firms like Six Forward.
• Digital Transformation and Automation: Increased use of technology in consultancy services, including software for capital allowance calculations and project tracking, pressures firms to adopt innovative solutions to maintain competitiveness.
• Economic Cycles and Construction Activity: Capital allowances are closely tied to capital expenditure in sectors such as construction and manufacturing. Economic downturns or uncertainty can reduce client capital expenditure, potentially constraining consultancy demand. Conversely, infrastructure stimulus or green investment initiatives can boost activity.
• Client Relationship Focus: As Six Forward’s website indicates a focus on providing accountants with expert advice, strong B2B partnerships and technical expertise are critical. Trends towards outsourcing specialist tax advisory services benefit niche consultancies.

Overall, the company operates in a niche segment that benefits from sustained regulatory complexity but must remain agile to shifts in client industries and technological advancements.

4. Competitive Positioning
   Six Forward (CA) Ltd positions itself as a specialist capital allowances consultancy, serving a niche within the broader management consultancy sector. This specialist focus distinguishes it from larger, generalist consultancies or financial management advisors. The company’s location within Keele Innovation Centre and its status as a small private limited company suggest a lean operational model, typical of boutique consultancies.

Strengths:

• Specialist expertise in capital allowances, a complex and technical area with high demand among accountants and businesses seeking tax relief.
• Healthy liquidity and positive dividend payouts indicate operational profitability and cash flow strength at an early stage.
• Ownership and control concentrated among two directors with rights to appoint/remove directors, facilitating agile decision-making.
• Early establishment of client receivables and work-in-progress supports growing market traction.

Weaknesses:

• Small scale relative to established competitors may limit market reach and brand recognition.
• Dependence on a narrow service offering may expose the company to sector-specific regulatory or economic risks.
• Lack of audited accounts and limited fixed assets may constrain perceptions of scale and capability among larger clients.
• Operating in a competitive environment where some larger firms offer integrated tax and management consulting services.

In comparison to sector norms, Six Forward’s financial health and growth indicators are positive for a start-up consultancy. However, scaling and diversification of services would be typical next steps to strengthen competitive positioning in the medium term.