Credit Assessment: Pace Telecom Limited (Co. No. 03602670)

1. Credit Opinion: DECLINE (for unrestricted commercial facility) / CONDITIONAL (with parent group support)

Reasoning: Pace Telecom presents a paradox — a solvent balance sheet (£3.7m net assets) attached to an entity that has ceased trading. Per Note 2.2 of the filed accounts, the company transferred its trading activities to a fellow group company, Enconvo UK Limited (previously Enreach UK Limited), during 2024. The accounts are explicitly prepared on a basis other than going concern — in both the current and prior year. For an unrestricted commercial facility requiring operating cash flow to service debt, this is a fundamental obstacle. However, on a balance sheet basis the company is overwhelmingly solvent, so a CONDITIONAL approval could be considered with an explicit parent guarantee from the Enreach group (Enreach Holding B.V. is already on the board as corporate director) and clear ringfencing of repayment against the £3.59m intercompany debtor book.

2. Financial Strength

Balance Sheet Position (as at 31 December 2024):

Observations:

• Net assets have grown materially (c.£2.1m uplift from 2021 to 2024), but this reflects the orderly wind-down — liabilities have been progressively settled (£1.43m → £18k) rather than active value creation.
• No tangible fixed assets at year-end 2024 (vs £25,782 in 2023) — consistent with transfer of operational assets to the group.
• Asset concentration risk: c.96% of total assets (£3.59m of £3.73m) sits in debtors — almost certainly intercompany with the new trading entity (Enconvo UK Limited). Recovery is therefore entirely dependent on the parent group's willingness to settle.
• Shareholders' funds match net assets exactly — no minority interests, no long-term debt, no provisions.
• Capital structure is clean: only £97 called-up share capital, retained earnings of £3.71m. The company is privately controlled (>75% by Pace Telecom (Holdings) Limited, itself within the Enreach group), with Xxxxxx Xxxxxxxxname shown to subscribers (CEO/Secretary) holding 25–50%.

Conclusion: The balance sheet is technically strong on a static snapshot basis, but the asset base is illiquid and concentrated in a related-party receivable. This is a wound-down shell, not an operating business.

3. Cash Flow Assessment

• Operating cash flow: effectively zero. The company has ceased trading. There is no revenue stream, no cost base to absorb, and no inventory or work-in-progress (£1,338 of stocks in 2024, nil implied in 2024 BS).
• Liquidity: Cash position has been falling (2021: £480k → 2024: £136k), reflecting settlement of legacy liabilities and distribution/wind-down activity. Cash represents only c.3.6% of net assets — minimal absolute liquidity.
• Working capital: Net current assets of £3.71m are healthy on paper but entirely reliant on intercompany debtor collection. Current ratio is exceptionally high (c.207x in 2024), reflecting the cessation of trading.
• Cash conversion: Cannot be meaningfully assessed — no revenue base.

Key concern: Without trading income, the only routes to repayment are (a) collection of intercompany debtors, (b) onward dividend/capital distribution from parent, or (c) sale of residual assets. All are subject to parent group discretion.

4. Monitoring Points

If a facility is granted (conditional on parent guarantee), the following should be monitored:

1. Status of the £3.59m intercompany debtor — Is there a formal repayment schedule? Is it interest-bearing? What is the credit standing of Enconvo UK Limited?
2. Group restructuring activity — Pace Telecom (Holdings) Limited owns >75%; Enreach Holding B.V. sits on the board. Watch for any further intra-group reorganisations, hive-ups, or member voluntary liquidations that could prejudice creditor position.
3. Final wind-down timeline — Is the company on track for strike-off/dissolution, or is it being kept alive indefinitely as a holding vehicle?
4. Confirmation Statement compliance — Last made up to 2026-07-21, next due 2027-08-04. Filings are up to date, but watch for slippage as this often signals neglect prior to dissolution.
5. Director changes — Xxxxxx Xxxxxxxxname shown to subscribers resigned as director 2026-08-31. Watch for further board turnover, particularly the loss of any UK-resident director (Xxxxxx Xxxxxxxxname shown to subscribers).
6. Accounting reference date change — The company changed its year-end from June to December during 2022; if it switches back or further alters, this may signal restructuring.
7. Filing timeliness — The accounts for year ending 31 December 2024 were signed on 29 December 2025 — this is at the outer edge of the 9-month statutory deadline (30 September 2025 was missed; accounts were apparently filed late). This is a negative indicator for management rigour and should be noted.
8. PSC register — Confirm no changes to control structure; any new PSC over 25% requires notification within 28 days.
9. No director conduct/disqualification records flagged in the data, which is positive.

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