WHITLOCK & LOWE LTD
Company number 03453676 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Financial Health Score: B
Whitlock & Lowe Ltd receives a B. This indicates a fundamentally sound business with a strong balance sheet and consistent profitability, but with some early-warning indicators—most notably a decline in cash reserves and a modest reduction in turnover—that warrant attention. The company is solvent, well-capitalised, and up to date with its statutory filings.
Key Vital Signs
| Metric | Year to 30 June 2025 | Year to 30 June 2024 | Interpretation |
|---|---|---|---|
| Turnover | £14.11m | £14.73m | Revenue eased by about 4%. The “pulse” is still strong but has softened slightly. |
| Total assets | £14.83m | £14.88m | Broadly stable; the business is not shrinking in scale. |
| Total liabilities | £4.36m | £5.39m | Debt has fallen by roughly 19%, easing pressure on the balance sheet. |
| Net assets / Shareholders’ funds | £10.19m | £9.13m | Equity rose by about 11%, indicating retained profits are building a solid capital cushion. |
| Cash at bank | £1.46m | £1.81m | Liquidity remains adequate, but cash has fallen by nearly a fifth—a symptom to monitor. |
| Gearing (liabilities ÷ net assets) | ~43% | ~59% | Financial leverage has improved materially; the company is less dependent on borrowed funds. |
| Asset turnover (turnover ÷ total assets) | ~0.95 | ~0.99 | The asset base is being used efficiently to generate sales. |
| Statutory compliance | Up to date | Up to date | Accounts and confirmation statement are not overdue. |
Note: Because the filed summary does not separate current assets from current liabilities, a precise current ratio cannot be calculated from the data provided.
Diagnosis
The company’s overall condition is good. Think of the balance sheet as having strong bone density: net assets exceed liabilities by more than double, and the equity base is substantial relative to the modest £1 share capital. Profits appear to be retained in the business rather than withdrawn, which is strengthening the company’s financial position year on year.
The main symptoms to observe are the slight cooling in turnover and the reduction in cash. In a construction and joinery business, this can reflect timing of project completions, retentions owed by customers, or investment in materials and work in progress. It does not, on its own, indicate distress, but it means the company’s “hydration” (liquidity) is lower than it was twelve months ago.
The accounts state the principal activity is the design, manufacture and installation of oak-framed buildings and related structures. The company operates in a sector where cash flow can be lumpy, so the decline in cash should be viewed in that context.
Prognosis
Stable, with a positive bias. The strong equity cushion and falling liabilities give the business room to absorb a short-term downturn. If cash flow stabilises and turnover firms up, the company is well placed to continue trading without financial strain. If cash continues to fall while revenue remains flat, pressure on working capital could build.
Recommendations
- Cash-flow forecasting: Prepare a rolling 13-week cash-flow forecast to explain and manage the approximately £350k reduction in cash. This will help distinguish between temporary timing differences and a structural drain.
- Revenue review: Investigate the 4% decline in turnover—whether it stems from pricing, volume, or project mix—and refresh the sales pipeline for oak-framed buildings and domestic construction.
- Working-capital discipline: Tighten credit control and debtor management. Construction contracts often involve stage payments and retentions, so invoicing and collection procedures should be reviewed.
- Dividend and reserves policy: Clarify with shareholders whether the approximately £1m of retained profit will continue to be reinvested or distributed, so cash planning reflects expectations.
- Compliance maintenance: Continue the current practice of filing accounts and confirmation statements on time to avoid penalties and maintain good standing.
- Cost and margin review: Given the flat-to-lower revenue, examine direct costs and overheads to protect the profit margin that is driving the increase in net assets.