THREADING BAR SALON LTD

Executive Summary

**THREADING BAR SALON LTD is a micro-sized operator in the competitive UK hairdressing and beauty treatment sector, typical of small, owner-managed salons with limited assets and staff. Its financial profile shows modest net assets and some short-term liquidity constraints, reflecting the tight operating conditions common in this labor-intensive, service-oriented industry. While well-positioned to serve a local niche with personalized services, the company faces sector challenges including high competition and margin pressures that require prudent financial and operational management.**

THREADING BAR SALON LTD - Analysis Report

Company Number: 13454232

Analysis Date: 2025-07-20 18:17 UTC

1. Industry Classification
   THREADING BAR SALON LTD operates within SIC code 96020, classified under "Hairdressing and other beauty treatment." This sector typically comprises small to medium-sized enterprises providing personal care services such as hair cutting, styling, threading, waxing, and other beauty treatments. The industry is characterised by low fixed assets requirements, reliance on skilled labour, high customer service orientation, and a competitive local market with numerous micro and small businesses.

2. Relative Performance
   As a micro-entity, THREADING BAR SALON LTD’s financials reflect typical characteristics of a small, early-stage beauty salon business. The company’s net assets dropped from £2,390 in 2023 to £1,764 in 2024, driven by a reduction in current assets and fixed assets. The firm maintains a positive net asset base, though the current liabilities exceed current assets in 2024 (net current liabilities of £168), indicating some short-term liquidity pressure. This is not uncommon in micro-sized salons, which often operate with tight working capital and variable cash flows. The company employs only one staff member, aligning with a sole-operator or very small team model typical in the sector.

Compared to industry benchmarks, many beauty salons in the UK operate within micro or small categories, with turnover often under £1 million and modest fixed assets due to limited equipment needs. THREADING BAR SALON LTD’s financial scale and asset base position it as a very small operator, consistent with a micro-entity profile rather than a larger or multi-location enterprise.

3. Sector Trends Impact
   The hairdressing and beauty treatment sector has experienced both challenges and opportunities recently. Post-pandemic recovery continues to drive demand growth, but inflationary pressures on wages, rent, and consumables squeeze margins. Consumer preference shifts toward personalized, boutique services favour smaller salons like THREADING BAR SALON LTD. Additionally, digital booking platforms and social media marketing are increasingly vital for client acquisition. The sector is also influenced by trends such as sustainability, use of organic products, and wellness integration, which can create differentiation opportunities. However, competition from home-based practitioners and larger chains remains intense, requiring nimble operational management.

4. Competitive Positioning
   THREADING BAR SALON LTD appears to be a niche micro-operator focusing on local clientele in South Shields. Strengths include a focused, low-overhead business model and control by a single director-owner, which can enable agile decision-making and personalized customer service. Its limited fixed assets and small workforce reduce financial risk but also constrain capacity for rapid growth.

Weaknesses relative to larger competitors include limited financial resources, potential vulnerability to cash flow fluctuations, and lack of economies of scale. The negative net current assets in the latest year signal a need for careful working capital management. Furthermore, absence of significant investment in assets or expansion may limit market reach and brand visibility compared to competitors who invest more heavily in marketing or diversified service offerings.

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