Credit Assessment: Pearson Management Services Limited (CH: 00096263)

1. Credit Opinion: APPROVE

This is a wholly-owned subsidiary of Pearson Plc, a FTSE 100-listed global education company, and operates as an internal holding/services vehicle within the Pearson group. The credit assessment effectively reduces to the financial standing of Pearson Plc as the ultimate parent. Given Pearson's status as a major listed group, the credit profile is favourable, though the absence of standalone trading activity and audited financials limits granular analysis of this entity in isolation.

2. Financial Strength

Balance Sheet Considerations:

• Share Capital: £4,000,000 — modest but consistent with a subsidiary used for management services or intra-group holdings rather than an operating business.
• Audit Exemption Subsidiary status: This entity is exempt from statutory audit as it is consolidated into Pearson Plc's group accounts. This classification is appropriate given the SIC code 64209 (Holding Company) and the long-dormant trading profile.
• Historical Context: Previously named Whitehall Securities Corporation, Limited until 1991, indicating this is an established group vehicle with potentially historical balance sheet strength now largely historical within the peer set.
• Limitation: The data set does not include filed balance sheet figures (total assets, liabilities, net assets) for the year ended 31 December 2024. As an iXBRL filing would be expected, this may be a structural omission rather than indicative of weakness — but it does constrain a full ratio analysis.

Strength Indicators: - 100% owned by a FTSE 100 parent (Pearson Plc owns >75% of shares and voting rights, plus director appointment control). - Registered at 80 Strand, London — Pearson's global headquarters. - Directors (Xxxxxx Xxxxxxxxname shown to subscribers, Xxxxxx Xxxxxxxxname shown to subscribers, Xxxxxx Xxxxxxxxname shown to subscribers) appear to be senior Pearson group officers. - Long corporate history (incorporated 1907) and continuous active status.

3. Cash Flow Assessment

Liquidity & Working Capital:

• No detailed working capital metrics are available in the source information, which is expected for a holding company of this type.
• Cash flow is structurally dependent on Pearson Plc: as a wholly-owned subsidiary, intra-group funding arrangements and any dividends/distributions from Pearson Plc would be the primary liquidity source.
• The entity is unlikely to have material third-party cash flow obligations of its own, given the holding company SIC classification.

Filing Compliance: - Accounts for FY2024 filed — compliant. - Next accounts due 30 September 2026 — on schedule. - Confirmation Statement filed 20 July 2026 — current. - One officer change recorded (Xxxxxx Xxxxxxxxname shown to subscribers resigned as secretary on 25 March 2026) — minor administrative transition with no credit implications.

4. Monitoring Points

For ongoing exposure management, the following should be tracked:

1. Pearson Plc Group Performance: Monitor the parent's leverage, EBITDA, and free cash flow generation. As a wholly-owned subsidiary, the creditworthiness is a direct function of parental credit considerations.
2. Group Restructuring Activity: Track any intra-group reorganisations, mergers, or demergers within Pearson that could affect this entity's role.
3. Statutory Filings: Ensure continued timely filing of accounts and confirmation statements — any deterioration here could signal weakening oversight.
4. Director Changes: Multiple recent officer changes (including a resignation in March 2026) warrant watching for evidence of governance churn.
5. Purpose of Facility: The commercial rationale for any facility must be established — given this is a holding/services company, any lending is effectively on a parent-only basis to Pearson Plc.

Pearson Management Services Limited is a wholly-owned holding company subsidiary of Pearson Plc (FTSE 100), classified as an Audit Exemption Subsidiary and operating as an intra-group vehicle from Pearson's London headquarters. Credit standing is intrinsically linked to the parent's investment-grade status, with no standalone trading risk apparent; the entity merits approval for credit facilities, subject to standard parental support and group exposure considerations.

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