Company Number: 13143322

Analysis Date: 2025-07-29 20:58 UTC

1. Risk Rating: HIGH
   Justification: EUROCORE PELHAM LIMITED shows significant liabilities relative to its assets and minimal liquidity. The company recorded a substantial loss in its first financial period, has a large creditor balance due after one year, and an extremely low cash position, indicating potential solvency and liquidity concerns.

2. Key Concerns:

• Liquidity Risk: Cash on hand is only £2,328 against current liabilities of approximately £809,734, resulting in negative net current assets of £-807,406. This suggests difficulty in meeting short-term obligations.
• High Leverage: The company carries long-term creditors of £16.28 million against total net assets of £5.06 million, implying a highly leveraged balance sheet that may impair financial flexibility.
• Operating Losses: The initial 11-month period ended with a loss of £363,548, reflecting challenges in generating profit from operations and potentially ongoing cash flow pressures.

3. Positive Indicators:

• Substantial Fixed Assets: Investments totaling £22.15 million serve as a strong asset base, potentially representing valuable property or development projects aligned with the company’s SIC code (development of building projects).
• No Overdue Filings: Both accounts and confirmation statements are filed on time, indicating good regulatory compliance and governance practices.
• Backing by Institutional Control: Prudential Financial, Inc., a reputable entity, holds significant control via director appointment rights, which may indicate robust oversight.

4. Due Diligence Notes:

• Verify the nature and liquidity of the £22.15 million fixed asset investments to assess their realizable value and contribution to solvency.
• Investigate the terms and repayment schedule of the £16.28 million long-term creditors to understand financial obligations and refinancing risks.
• Review updated financial statements beyond 2021 to evaluate current operating performance, cash flows, and changes in financial position given recent director changes and company activities.
• Assess the company’s business model sustainability and pipeline of development projects given its SIC code and initial operating losses.
• Confirm absence of contingent liabilities or emerging risks since the last accounts date.