ROWLEC LIMITED

Risk Rating: LOW

Based on the available financial data and filing history, Rowlec Limited presents a low-risk profile. The company demonstrates consistent net asset growth, healthy cash positions, and compliant filing status over a sustained period. The business is a family-run electrical wholesale distributor with a 15-year trading history and strong balance sheet fundamentals.

Key Concerns

1. Concentration of Control and Key Person Risk: The company is controlled by Xxxxxx Xxxxxxxxname shown to subscribers, who owns more than 75% of shares and voting rights. All three directors share the Xxxxxxxname shown to subscribers surname, suggesting a family-owned business with no independent oversight. This concentration creates succession and governance risks, particularly if key individuals become unable to fulfil their roles.

2. Debtors Level Relative to Cash: Trade debtors stand at £902,646 against cash of £410,635. While not alarming given the wholesale trade nature, the debtors represent approximately 60% of total assets. A deterioration in debtor quality or collection times could materially impact liquidity. The year-on-year increase in debtors (£879k to £903k) alongside declining cash (£485k to £411k) warrants monitoring.

3. Limited Filing Transparency: The company files under the small companies' regime with audit exemption and filleted accounts. The profit and loss account has not been delivered to the registrar, meaning revenue, gross margin, and profitability metrics are not publicly available. This limits the ability to assess trading performance, margin trends, and operational efficiency from external data alone.

Positive Indicators

• Consistent Net Asset Growth: Net assets have grown steadily from £402k (2017) to £1.15m (2025), representing approximately 185% growth over eight years. This demonstrates retained profitability and disciplined reinvestment.

• Strong Solvency Position: Total assets of £1.49m comfortably exceed total liabilities of £453k, yielding net assets of £1.15m. Current assets (£1.49m) significantly exceed current liabilities (£453k), providing a current ratio of approximately 3.3:1 — well above conservative thresholds.

• Substantial Cash Reserves: Cash at bank of £411k provides meaningful liquidity buffer, representing approximately 28% of total assets and covering current liabilities to a ratio of roughly 0.9:1 from cash alone.

• Long Trading History: Incorporated in 2009, the company has 15+ years of continuous operation, indicating established market position and business sustainability in the electrical wholesale sector.

• Compliant Filing Status: Both accounts and confirmation statements are up to date with no overdue filings. Accounts for the period ending March 2025 were approved and authorised in November 2025, within statutory deadlines.

• Low Long-term Debt: Creditors falling due after more than one year are modest at £84k, suggesting limited reliance on long-term external financing.

Due Diligence Notes

1. Profit and Loss Account: As filleted accounts have been filed, the P&L is not publicly available. Request full management accounts to assess turnover trends, gross margins, operating costs, and net profitability. The SIC code (46900 - non-specialised wholesale trade) and website description suggest electrical wholesaling — confirm revenue concentration by customer and supplier.

2. Debtor Quality and Aging: Given debtors of £903k, obtain an aged debtor analysis. Assess days sales outstanding (DSO), any provisions for bad debts, and concentration risk among top customers. Compare DSO against industry norms for electrical wholesale distribution.

3. Stock Valuation and Turnover: Stocks are reported at £180k, unchanged year-on-year. Investigate stock composition, obsolescence risk, and inventory turnover ratios. Static stock levels may indicate either disciplined management or potential slow-moving inventory.

4. Provisions for Liabilities: The balance sheet shows provisions of £45k. Clarify the nature of these provisions — whether they relate to warranties, pensions, restructuring, or other obligations — and assess adequacy.

5. Related Party Transactions: Given the family ownership structure, examine any related party transactions, including director remuneration, loans to/from directors, and transactions with connected entities.

6. Director Disqualification Checks: No disqualification records were identified in the provided data, but this should be independently verified against the Insolvency Service database for all current directors.

7. Creditors Composition: Current creditors of £453k should be broken down by trade payables, accrued expenses, and any tax liabilities. Assess creditor days and payment terms to evaluate working capital management.

Names of the people mentioned are shown to subscribers. See subscription