PACE POGO ENERGY LIMITED

Executive Summary

PACE POGO ENERGY LIMITED exhibits high solvency and liquidity risk as evidenced by persistent negative net current assets and shareholders’ funds. While the company maintains regulatory compliance and stable management, its reliance on related party funding and ongoing losses raise concerns about operational sustainability. Further due diligence on funding arrangements and cash flows is essential to assess future viability.

PACE POGO ENERGY LIMITED - Analysis Report

Company Number: 12645960

Analysis Date: 2025-07-20 14:56 UTC

1. Risk Rating: HIGH
   The company shows persistent net current liabilities and negative net assets over multiple years, indicating ongoing solvency issues and an inability to cover short-term liabilities with current assets.

2. Key Concerns:

• Negative Net Current Assets: The company has net current liabilities of approximately £3,170 as at January 2024, worsening slightly from previous years. This suggests liquidity constraints.
• Negative Shareholders' Funds: Shareholders’ funds are negative (£-3,270), reflecting accumulated losses and undercapitalization.
• Amounts Owed to Group Undertakings: A significant portion of current liabilities (£329,528) are amounts owed to group undertakings, which may indicate dependency on related parties for funding and potential risk if such support ceases.

3. Positive Indicators:

• Timely Filings: The company is current with its accounts and confirmation statements, showing regulatory compliance.
• Small Scale Operations: With only 2 employees on average and micro/small filing category, the company’s operational scale may limit some risks inherent in larger operations.
• Stable Management: Directors have been in place since incorporation with no indications of disqualifications or legal issues.

4. Due Diligence Notes:

• Investigate the nature and terms of the amounts owed to group undertakings to understand related party risk and funding dependency.
• Review cash flow statements and working capital management to assess short-term liquidity and operational cash needs.
• Confirm whether the unpaid share capital (£100) affects the company’s capital adequacy and creditor protection.
• Evaluate the company’s business model and strategy for returning to profitability and improving net asset position.
• Assess potential contingent liabilities or off-balance sheet risks not captured in the accounts.