STOTT AND MAY CONSULTING LIMITED

Executive Summary

Stott And May Consulting Limited is a focused management consultancy firm demonstrating promising revenue traction yet facing critical liquidity constraints. To capitalize on growth potential, the company must strengthen working capital management, diversify services, and scale its operational capacity while mitigating risks from financial leverage and client concentration. Strategic investments in talent and partnerships will be pivotal to securing a resilient competitive position in a dynamic consultancy market.

STOTT AND MAY CONSULTING LIMITED - Analysis Report

Company Number: 13137574

Analysis Date: 2025-07-20 15:31 UTC

1. Executive Summary
   Stott And May Consulting Limited operates in the niche of management consultancy (excluding financial management), positioning itself as a small but specialized player within the UK consultancy sector. While the company demonstrates increasing debtor balances and expanding operations, it currently faces significant liquidity challenges reflected in persistent negative working capital and shareholders’ funds. These financial dynamics highlight both the firm’s growth ambitions and the critical need for improved balance sheet management to sustain long-term viability.

2. Strategic Assets

• Specialized Consulting Focus: Concentration on management consultancy activities other than financial management allows Stott And May to carve out expertise in a less commoditized segment, potentially attracting clients seeking tailored advisory services.
• Established Client Relationships: The substantial increase in trade debtors (from £777K in 2022 to £1M+ in 2023) suggests solid revenue generation and demand for services, indicating strong client engagement and possibly recurring contracts.
• Experienced Leadership: The company is led by a founder-director with consistent involvement since inception, providing strategic continuity and focused decision-making.
• Flexibility of Small Size: Being a small company allows agility in responding to market changes and client needs, which is crucial in consultancy.

3. Growth Opportunities

• Improved Working Capital Management: Addressing the negative net current assets (worsening from -£31K in 2022 to -£175K in 2023) can unlock liquidity for reinvestment and enable smoother operations. Implementing stricter credit control and faster debtor collections would improve cash flow.
• Service Line Expansion: Leveraging consultancy expertise to diversify into complementary advisory areas such as digital transformation or operational excellence could expand market share and client base.
• Geographic Expansion: Given the London headquarters and UK-centric base, exploring adjacent regional markets or international clients may drive revenue growth.
• Strategic Partnerships: Collaborations with technology providers or larger consultancy firms could enhance service offerings and credibility.
• Investment in Talent: Current staffing is minimal (average 3 employees), so scaling the team with skilled consultants can support larger projects and higher-value engagements.

4. Strategic Risks

• Liquidity and Solvency Stress: Persistent negative shareholders’ funds and net current liabilities indicate financial vulnerability, risking creditor confidence and limiting investment capacity. The recent introduction of bank loans (secured debts of £277K in 2023) increases financial leverage and associated risk.
• Client Concentration and Credit Risk: High debtor levels concentrated in a few clients or slow payment cycles could jeopardize cash flow and profitability. The company must monitor credit exposure diligently.
• Market Competition: The consultancy market is fragmented with many players; failure to differentiate sufficiently or maintain strong client relationships may erode market position.
• Dependence on Key Personnel: With a small team and a single director at the helm, the business is vulnerable to disruptions if key individuals depart.
• Regulatory and Economic Uncertainty: Changes in UK economic conditions or regulatory environment affecting client budgets could reduce demand for consultancy services.