SWARAAJ LTD

Executive Summary

SWARAAJ LTD operates as a micro-entity within the UK IT consultancy sector, characterized by a small scale and concentrated ownership. Despite maintaining positive net assets, the company’s significant reduction in current assets and liquidity in 2024 indicates potential operational constraints relative to typical industry benchmarks. As a small player amid rapidly evolving market demands, SWARAAJ LTD faces challenges in scaling and competing against larger consultancies that benefit from broader resources and client portfolios.

SWARAAJ LTD - Analysis Report

Company Number: 13506391

Analysis Date: 2025-07-29 16:06 UTC

1. Industry Classification
   SWARAAJ LTD operates within the "Information technology consultancy activities" sector, classified under SIC code 62020. This sector typically involves providing expertise and advisory services related to IT systems, software integration, digital transformation, and technology strategy. Key characteristics include a reliance on highly skilled personnel, project-based revenue streams, and a strong emphasis on innovation and client relationship management. The sector is competitive and rapidly evolving, driven by technological advances and increasing digital adoption across industries.

2. Relative Performance
   As a micro-entity with an account category reflecting minimal filing thresholds, SWARAAJ LTD is a very small player within the IT consultancy sector. Its financials show a significant reduction in net current assets from approximately £67,500 in 2023 to £33,451 in 2024, and a steep drop in current assets from £61,349 to just £156. This decline suggests reduced liquidity and possibly lower cash or receivables on hand. However, the company maintains positive net assets and shareholders' funds, indicating continued solvency. Compared to typical industry benchmarks where even small consultancies aim for stable or growing cash positions and project pipelines, SWARAAJ LTD’s asset contraction may signal challenges in sustaining working capital or client engagements.

3. Sector Trends Impact
   The IT consultancy sector in the UK is influenced by ongoing digital transformation trends, cloud adoption, cybersecurity needs, and demand for agile technology solutions. Post-pandemic recovery and economic uncertainties affect client budgets and project timelines. Small consultancies often face pressure to differentiate through specialization or flexible service models. The micro scale of SWARAAJ LTD may limit its ability to capture larger contracts or invest in innovation compared to medium or large competitors. Additionally, supply chain disruptions and talent acquisition challenges prevalent in the sector could constrain growth and operational capacity for very small firms.

4. Competitive Positioning
   SWARAAJ LTD’s position as a micro private limited company with a single director controlling 75-100% of shares and voting rights indicates a highly centralized ownership and decision-making structure. This can enable nimble responses but may restrict resource availability and scalability. The company’s financial contraction and minimal current assets contrast with sector norms where successful IT consultancies maintain healthy working capital to manage project cycles and staffing costs. Its niche in consultancy activities suggests it may serve local or specialized clients but lacks scale to compete with larger firms offering comprehensive IT services. Strengths likely include personalized service and low overheads; weaknesses include limited financial buffer, personnel resources (evidenced by only one employee), and possibly constrained market reach.