PHEDELIA ROSE LTD

Executive Summary

PHEDELIA ROSE LTD is a micro-sized entrant in the highly fragmented UK hairdressing and beauty treatment sector, currently exhibiting typical early-stage financial challenges including negative net assets and limited liquidity. The company's sole director ownership structure supports agile management but constrains operational scale. To gain competitive footing, the business will need to address financial resilience and leverage sector trends such as digital engagement and service differentiation.

PHEDELIA ROSE LTD - Analysis Report

Company Number: 14416650

Analysis Date: 2025-07-20 18:08 UTC

1. Industry Classification
   PHEDELIA ROSE LTD operates within SIC code 96020, classified under "Hairdressing and other beauty treatment." This sector typically consists of small to medium-sized private enterprises offering personal grooming services including hair cutting, styling, and ancillary beauty treatments. The industry is characterised by high fragmentation, a large number of micro and small businesses, low capital intensity, and reliance on skilled labour. Customer retention, location, service quality, and brand reputation are critical competitive factors.

2. Relative Performance
   As a private limited company incorporated in October 2022, PHEDELIA ROSE LTD is a micro or small entity by UK Companies House standards, with no employees reported and modest fixed assets of £8.5k. The company shows net liabilities (negative net assets) of approximately £13k as of October 2024, indicating accumulated losses or initial start-up costs exceeding equity contributions. The cash balance is minimal (£318 in 2024, down from £2,748 in 2023), and the company carries current liabilities of £6,735 and longer-term creditors of £15,100. This financial position is not uncommon for a start-up in the hairdressing sector, where early profitability can be limited due to initial capital investments, marketing, and working capital needs. However, the negative net asset base and absence of employees suggest the business may still be in early development or reliant on external factors such as owner involvement.

Industry benchmarks for small hairdressing businesses often show modest profitability, with typical margins influenced by location, pricing strategy, and customer throughput. Many competitors maintain positive net assets and cash reserves to manage working capital fluctuations. In contrast, PHEDELIA ROSE LTD's financials reflect an early-stage operation with ongoing losses and limited liquidity, which may impede expansion or operational resilience.

3. Sector Trends Impact
   The UK hairdressing and beauty treatment sector has experienced several dynamics over recent years:

• Increasing consumer demand for premium and specialised services, including eco-friendly and organic treatments.
• Growing competition from both independent salons and larger chains or franchises.
• Impact of COVID-19 led to closures and reduced footfall, with a gradual recovery in 2023-2024.
• Rising costs for premises, materials, and skilled labour squeeze margins.
• Digital transformation, including online booking and social media marketing, has become vital for customer acquisition and retention.

For PHEDELIA ROSE LTD, these trends imply the need for strategic differentiation and efficient cost control. The lack of employees reported may indicate the owner is the primary operator, which can be advantageous for cost management but limits scalability. The company’s financial position suggests it may face challenges in funding growth or technology adoption needed to capture evolving consumer preferences.

4. Competitive Positioning
   Strengths:

• Ownership and control concentrated in one individual (Miss Selasie Ackuaku), potentially allowing swift decision-making and personal service quality focus, important in the hairdressing sector.
• Modest tangible fixed assets consistent with small salon operations.

Weaknesses:

• Negative net asset position and low cash reserves pose risks regarding liquidity and ability to weather downturns or invest in marketing and service development.
• No employees reported, indicating limited capacity to serve multiple clients or expand service offerings.
• The company is very young (established 2022), thus lacking an established customer base or brand recognition compared to longer-standing competitors.

Compared to typical small and medium players in the hairdressing industry, PHEDELIA ROSE LTD is still in a foundational stage with financial and operational constraints. Competitors with stronger balance sheets, positive cash flows, and a team of stylists may be better positioned to capitalize on sector growth and evolving consumer demands.