The June 2026 ACCA SBL pre-seen is all about hairdressing company Denis & KoKo Ltd (DKK).
We have joined up with ACCA SBL expert tutor Sean Purcell Sean, who looks at the key messages we can learn from the June pre-seen and shows you how to use the two weeks before the exam wisely. Check out our 30-minute video at: https://youtu.be/Grpd-hCKPNM
There are two parts to the case – the first half looks at the hairdressing industry in Kayland (a developed country with a stable economy), and the second hones in on the company itself. DKK is the third largest in the industry and has been established for 40 years.
In the general overview we discover this is a fragmented industry with low barriers to entry, so new competition can surface at any time.
The three largest businesses (remember DKK is third) are national chains, but generate less than 3% of total revenue between them.
The largest chain Halon Hair (203 salons) provides a good service, followed by Trimz (85 salons) which provides a basic service. Then comes DKK with 50 salons and provides an excellent client experience.
We are then told hairdressing is a growth industry, and there are more businesses being formed.
When it comes to hairdressing skills and qualification, these are not mandatory, but the bigger salons have their own training academies. CPD is also provided by the academies. Conferences and seminars are sponsored by global haircare product brands.
Individual reputations are enhanced by hairdressing competitions, and some hairdressers are also using social media to showcase their skills. So, hairdressers are becoming the stars, rather than the company.
Turning to DKK we find around 94% of revenue comes from hairdressing services, and 6% from retail sales.
Some experts have suggested DKK’s technology is a bit thin for a 50-salon chain. They have paper appointment books, and individual salons keep their own client details. There is no stock tracking or online booking either. And, the company has a poorly co-ordinated social media presence.
Just 20% of industry waste is recycled, yet DKK has no environmental management policy, and in its stated values the company has sustainability there as one of its five values.
Staff retention might be another exam theme, although DKK’s satisfaction rating dropped only slightly. Its reliance on two international suppliers for products also makes it vulnerable.
As a privately owned business they have no audit committee. The non-executive is co-founder Denis. It might be prudent then to recruit some more non-execs, maybe some with fintech skills and sustainability.
There is lots of great free advice if you look around…
