Company Number: 12926271

Analysis Date: 2025-07-20 14:28 UTC

1. Risk Rating: LOW to MEDIUM
   PACE Manufacturing Ltd demonstrates a solid financial position with strong net current assets and increasing net assets over recent years. The company maintains healthy cash balances and has no overdue filings, indicating good regulatory compliance. However, the rise in long-term creditors and hire purchase liabilities warrants monitoring.

2. Key Concerns:

• Increasing Creditors Falling Due After One Year: The jump from approximately £5k to nearly £272k in long-term liabilities within one year, largely due to hire purchase contracts and other creditors, may signal growing leverage and future repayment obligations.
• Concentration of Control: One director (Mr Yan Anthony Lewis) holds significant control (25-50% shares and voting rights) and appointment rights, which could pose governance risks if not balanced.
• Limited Share Capital: The nominal share capital (£2.00 called up, £100 in accounts) is minimal, which is typical for small private companies but limits equity buffer against losses.

3. Positive Indicators:

• Strong Liquidity Position: Cash on hand of £556k and net current assets of £672k as at 31 December 2024 indicate ample short-term liquidity to meet obligations.
• Consistent Growth in Net Assets: Net assets increased from £103k in 2020 to £522k in 2024, reflecting retained earnings and business growth.
• No Overdue Filings and Active Status: All statutory accounts and confirmation statements are filed on time, showing good compliance and governance practices.
• Increasing Tangible Fixed Assets: Investment in plant and machinery increased significantly in 2024, suggesting operational expansion and capital investment.

4. Due Diligence Notes:

• Review the nature and terms of the hire purchase contracts and other long-term creditors to assess refinancing risk and repayment schedules.
• Evaluate the company's cash flow statements (not provided) for operational cash generation and working capital management to confirm liquidity sustainability.
• Investigate the governance structure to ensure adequate oversight given the concentration of control by a single individual.
• Confirm the company's customer base and order book to assess ongoing operational stability in the engineering sector.
• Assess any contingent liabilities or off-balance-sheet obligations not disclosed in the filed accounts.