COLLECTING CARS US LIMITED

Executive Summary

Collecting Cars US Limited operates with a weak financial position characterized by high net liabilities and reliance on parent company loans. While ongoing support from the parent mitigates immediate credit risk, the company’s lack of independent cash flow and negative equity necessitate conditional credit approval subject to continued group backing. Close monitoring of the parent’s support and company’s financial performance is essential going forward.

COLLECTING CARS US LIMITED - Analysis Report

Company Number: 13054907

Analysis Date: 2025-07-29 14:42 UTC

Credit Opinion:
CONDITIONAL APPROVAL. Collecting Cars US Limited shows significant net liabilities and current liabilities exceeding current assets by a wide margin, indicating a weak balance sheet. However, the company benefits from strong parent company support, with substantial intercompany loans repayable on demand and no interest charged, plus assurances from the parent regarding ongoing financial support. This mitigates immediate credit risk, but the reliance on group funding and absence of independent cash generation represent a material credit concern requiring ongoing monitoring.

Financial Strength:
The company’s net liabilities stand at approximately £779k as of 31 December 2023, worsening slightly from the prior year. Fixed assets are minimal (£5k), with negligible current assets (£325), mainly cash and minor VAT recoverable. Current liabilities are high at £784k, predominantly amounts owed to the parent group (£781k). The equity base is extremely weak, with shareholders’ deficit reflecting accumulated losses. No external debt or interest-bearing liabilities are reported. The balance sheet lacks resilience and indicates the company is not yet self-sustaining.

Cash Flow Assessment:
Cash at bank is minimal (£269) compared to current liabilities due within one year (£784k), predominantly owed to the parent company and repayable on demand. There is no evidence of independent operating cash flow or working capital surplus; instead, the company is dependent on continuous funding support from the parent entity. Absence of employees and limited operational assets imply limited internal cash generation. Liquidity depends entirely on the parent’s willingness to continue providing financial accommodation.

Monitoring Points:

• Parent company’s financial health and willingness to maintain funding support.
• Changes in intercompany loan balances and terms (e.g., demand for repayment or imposition of interest).
• Any improvements in turnover, profitability, or independent cash generation.
• Trends in net liabilities and working capital position in future accounts.
• Any director changes or material adverse developments affecting governance or control.