Whitewater put into administration

17 Apr 2012 News

Charity direct marketing agency Whitewater has gone into administration, despite its latest accounts showing no indication that the company was in trouble.

Charity direct marketing agency Whitewater has gone into administration, despite its latest accounts showing no indication that the company was in trouble.

Whitewater, along with another company in the Involve Marketing Partnership, called Involve, was placed into administration yesterday, with staff being told of the move on Monday morning.

Whitewater has a long list of household-name charity clients, including RSPCA, NSPCC, Macmillan, WaterAid and the Royal British Legion.

A spokesman for the Involve Marketing Partnership would not expand on the status of Whitewater’s work with its existing clients.

Martin Smith, chief executive of Involve Marketing Partnership, moved to assure the market that its ten other agencies, which include Our Lasting Tribute, Tardis Communications, Active Life, and PushButton Direct Mail, are solvent.

“This has no impact on the other businesses and agencies in the group. All operate profitably and independently of each other,” said Smith.

Accounts: ‘Reasonable to expect’ the company continues

Whitewater’s most recent accounts, for the year ending 30 June 2011, show a company making profit, but with debt. Profit and turnover were both up on the previous year, but the agency was hit with a much larger tax bill, which meant profit after tax was lower than in 2010. After tax the company made £327,440 on a turnover of £7.1m during 2010/11.

Its debts had increased markedly in the year, from £1.39m at the end of its 2009/10 financial year to £2.06m for the year 2010/11. Still, shareholders shared a total dividend of £37,000.  

But the accounts appear to represent a clean bill of health for Whitewater. “On the basis of their assessment of the company’s financial position and of the enquiries made of the directors of the Involve Partnership Ltd [Involve Marketing Partnership], the company’s directors have a reasonable expectation that the company will be able to continue in operational existence for the foreseeable future,” the accounts read. 

At the time the company employed 39 staff.

More on