PERSHING SECURITIES LIMITED

Risk Analysis: Pershing Securities Limited

1. Risk Rating: HIGH (with significant data limitations)

Justification: The lack of financial statements in the available data is a critical gap for any investment risk assessment. While the company demonstrates good filing compliance and a long-standing corporate structure, the absence of balance sheet, profit & loss, and cash flow information means that solvency, liquidity, and operational sustainability cannot be evaluated. A financial intermediary with minimal disclosed share capital (£121) operating in securities-related activities warrants elevated caution until detailed accounts are reviewed.

2. Key Concerns

• Absence of Financial Data: No actual financial figures (turnover, net assets, current liabilities, reserves) are provided. This is the most significant red flag. Without these, it is impossible to determine whether the company meets regulatory capital requirements, maintains positive working capital, or generates sustainable profits.

• Extremely Low Share Capital: Issued share capital stands at £121. While not unusual for a private limited company that may have substantial retained reserves, this is exceptionally low for a firm engaged in "financial intermediation not elsewhere classified" (SIC 64999). Such activities often require significant regulatory capital under FCA or PRA rules. The apparent thin capital base raises questions about the firm's ability to absorb losses.

• Dependence on Parent Support: The sole person with significant control is Pershing Limited (a corporate entity), which holds >75% of shares and voting rights. While this suggests group backing, it also creates concentration risk. The resilience of the company is effectively dependent on the health and continued support of a single parent. Any distress at the parent level could directly affect Pershing Securities Limited’s viability.

3. Positive Indicators

• Long Operating History: Incorporated in 1990 (35 years active), indicating stability and market presence. The company has been consistently filing accounts and confirmation statements.

• Good Filing Compliance: Both accounts and returns are up to date with no overdue filings. The accounts are filed on a "Full" basis (not abbreviated), which should ordinarily provide greater transparency, though the data was not supplied here.

• Professional Board Composition: Directors include multiple long-serving individuals (e.g., Glenn Thorpe, Dennis Wallestad) with backgrounds likely in financial services. The presence of a corporate secretary (BNY Mellon Secretaries UK Limited) adds governance credibility. No disqualification records or adverse director conduct notes were observed.

4. Due Diligence Notes

• Obtain and Review Full Financial Accounts: Request the latest filed accounts (year ended 31 December 2025) to assess net assets, working capital, debt levels, and profitability. Key metrics to check: net current assets, retained earnings, and any contingent liabilities.

• Verify Regulatory Status: Confirm whether Pershing Securities Limited is authorised by the Financial Conduct Authority (FCA) or Prudential Regulation Authority (PRA) for its SIC classification. Check the FCA Register for permissions, capital adequacy disclosures, and any enforcement history. Financial intermediation activities may require ICAAP/ICARA documentation.

• Assess Parent Company Strength: Evaluate Pershing Limited’s financial health and its published accounts. Look for any explicit guarantee or letter of comfort provided to Pershing Securities Limited. Understand the nature of intra-group transactions, intercompany balances, and dividend policies.

• Review the Last Full Accounts Document (if available): Since the company files full accounts, request the directors’ report and strategic report. These may contain risk management disclosures, future outlook statements, and details of regulatory capital adequacy.

• Check for Charges or Mortgages: Search Companies House registry for any outstanding charges against the company’s assets that could indicate secured borrowings.