OWN LABEL SKINCARE LIMITED
Company Analysis
This analysis is opinion only and should not be interpreted as financial advice.
OWN LABEL SKINCARE LIMITED - Analysis Report
Industry Classification
Own Label Skincare Limited operates under SIC code 20420, which designates the company within the "Manufacture of perfumes and toilet preparations" sector. This industry encompasses the production of a wide range of personal care products including skincare, cosmetics, perfumes, and related toiletries. Key characteristics of this sector in the UK include a high degree of product innovation, a growing consumer preference for natural and ethical products (e.g., vegan, cruelty-free), and significant competition from both established multinational brands and smaller niche producers.Relative Performance
Given the company was incorporated in early 2023 and reports unaudited accounts for the year ended January 2025, it is very much in its formative stage. The financials indicate net liabilities of £46,700 and negative shareholders’ funds at the most recent year-end, compared to positive net assets (£10,947) the prior year. Such a swing is typical for early-stage manufacturing startups investing heavily in inventory (£35,000) and scaling operations. The company employs an average of four staff, placing it firmly in the micro to small enterprise category. The balance sheet shows a concerning working capital deficit (£50,300 negative net current assets), largely due to high current liabilities (£100,309), including director loans and bank overdrafts. Compared to typical small UK manufacturers in this sector, which often maintain positive working capital to ensure smooth supply chain operations, this indicates liquidity pressure. However, given the company’s youth, some early financial strain is not unusual.Sector Trends Impact
The UK skincare and cosmetics manufacturing sector is experiencing robust demand for clean, vegan, and cruelty-free products—trends that Own Label Skincare explicitly targets, as reflected on their website. The rise in consumer awareness about ethical sourcing and sustainability has fueled demand for bespoke skincare brands, a niche Own Label Skincare aims to serve by offering private label manufacturing. However, the sector is also marked by intense price competition, supply chain volatility (notably raw materials), and regulatory compliance costs related to product safety and labeling. Post-Brexit trade adjustments and recent inflationary pressures on packaging and logistics further strain margins for smaller manufacturers. For Own Label Skincare, successfully navigating these trends requires operational efficiency and capital to invest in product development and marketing.Competitive Positioning
Own Label Skincare is a niche player rather than a market leader, focusing on private label, vegan skincare products developed in the UK. This positions the company well to capitalize on the ethically conscious consumer segment but also subjects it to competition from both established contract manufacturers and emerging boutique producers. The financial position suggests the company is still building scale and market presence, with negative equity reflecting investment in growth and working capital challenges. Its strengths include the backing of an experienced team (the site references the award-winning Buddha Beauty team) and alignment with strong sector trends. Weaknesses are typical for a startup: limited financial buffer, dependency on director funding, and a currently stretched liquidity position compared to healthier small-scale manufacturing peers who maintain positive net current assets and stronger cash reserves.
executiveSummary
Own Label Skincare Limited is an early-stage, niche manufacturer in the UK’s competitive perfumes and toilet preparations sector, focusing on vegan and cruelty-free private label skincare. While their financials show typical startup challenges including negative working capital and net liabilities, their strategic positioning aligns well with strong consumer trends favoring ethical and bespoke products. Sustained growth will depend on managing liquidity and scaling operations efficiently amid sector-wide cost and regulatory pressures.
/executiveSummary
More Company Information
Recently Viewed
Follow Company
- Receive an alert email on changes to financial status
- Early indications of liquidity problems
- Warns when company reporting is overdue
- Free service, no spam emails Follow this company