ELECTRIC RACING AUTOMOBILES LTD

Executive Summary

Electric Racing Automobiles Ltd is a dormant private limited company with no trading activity or financial substance over multiple years. Its balance sheet shows only nominal cash and equity, with no operational cash flow or assets. Due to the lack of business activity and financial data, the company is unsuitable for credit facilities at this time.

ELECTRIC RACING AUTOMOBILES LTD - Analysis Report

Company Number: 12687534

Analysis Date: 2025-07-29 20:18 UTC

1. Credit Opinion: DECLINE
   Electric Racing Automobiles Ltd is a dormant company with negligible financial activity and minimal net assets (£2) over multiple years. The company shows no trading history or financial performance data indicating any revenue generation or operational growth. This lack of trading and financial substance strongly suggests an inability to service any credit facilities or debt obligations. Without active business operations or cash flow, extending credit would present an unacceptable risk.

2. Financial Strength:
   The balance sheet is essentially nominal, with cash and net assets at £2 consistently over five years. Shareholder funds equal net assets, reflecting no accumulated profits or retained earnings. There are no fixed or current assets beyond minimal cash, no liabilities reported, and no evidence of operational scale or capital investment. The dormant status indicates no commercial activity, so the balance sheet provides no financial strength or buffer.

3. Cash Flow Assessment:
   Cash held is constant at £2, indicating no inflows or outflows. There is no working capital or liquidity to support ongoing operations or meet financial commitments. Given the dormant status, the company does not generate cash flows from business activities, rendering liquidity assessment moot from a credit perspective.

4. Monitoring Points:

• Change in company status from dormant to active trading
• Filing of full statutory accounts with operational financial data
• Evidence of revenue generation, profitability, and positive cash flows
• Any capital injections or changes in shareholder funds indicating financial strengthening
• Changes in director appointments or PSC structure that may indicate strategic shifts