PEARLSTAR LIMITED

Executive Summary

Pearlstar Limited is a holding company with a strong equity base and no immediate solvency or liquidity concerns. Its financial stability largely depends on the performance of its primary investment subsidiary, Hoganor S.L., and the collectability of its long-term debtors. The company maintains good regulatory compliance and governance standards, but further due diligence on the subsidiary and debtor quality is recommended to fully assess operational sustainability and risk exposure.

PEARLSTAR LIMITED - Analysis Report

Company Number: 13488351

Analysis Date: 2025-07-29 16:50 UTC

1. Risk Rating: LOW
   Pearlstar Limited demonstrates a stable financial position with net assets of approximately £1.45 million, no overdue filings, and a simple corporate structure. The company primarily functions as a holding entity with a substantial investment in its subsidiary, Hoganor S.L. There are no indications of insolvency risk or liquidity concerns based on the latest filed accounts.

2. Key Concerns:

• Concentration Risk: The company's balance sheet is heavily weighted toward a single investment in Hoganor S.L. (£1.4 million), which could expose Pearlstar to risks if the subsidiary underperforms or incurs losses.
• Limited Operational Data: The company employs only one person and appears to have minimal operational activity beyond holding investments, which may limit revenue diversification and resilience.
• Foreign Exposure: The investment is in Hoganor S.L., presumably a foreign entity (likely Spain based on the naming), which introduces currency risk and potential jurisdictional complexities.

3. Positive Indicators:

• Strong Shareholder Support: The shareholder contribution account is sizeable (£1.45 million), indicating committed equity backing beyond the nominal share capital (£1.178).
• Compliance and Governance: The company is current with all filing deadlines (accounts and confirmation statements) and employs a professional corporate secretary, suggesting good regulatory compliance.
• Clean Director Record: No evidence of disqualifications or compliance issues related to directors; the current director has a professional background (barrister), which may imply sound governance oversight.

4. Due Diligence Notes:

• Assess the financial health and performance of Hoganor S.L., including its audited accounts, to understand the underlying value and risks of the investment.
• Investigate the nature of the debtor balances (£45,427), particularly the £44,071 due after more than one year, to evaluate collectability and impact on liquidity.
• Review any currency risk management policies in place given foreign investment exposure and the translation effects noted in the accounts.
• Clarify the company's business model and future plans to ascertain sustainability beyond holding investments, especially given its minimal employee count.