Company Number: 13528764

Analysis Date: 2025-07-20 18:38 UTC

1. Credit Opinion: DECLINE
   Departure Technology Ltd shows signs of financial stress, with net current liabilities reported in the latest financial year (2024) and a significant erosion of shareholders' funds from £3,412 in 2023 to only £274 in 2024. The company's working capital position has deteriorated, indicating potential liquidity issues which could impair its ability to meet short-term obligations. Additionally, the company is very small (micro entity) with only one employee and limited asset base, which constrains operational flexibility. The director has advanced £10,000 to the company, suggesting reliance on internal funding rather than external creditworthiness. Given these factors, the risk profile is elevated and credit approval is not recommended without substantial mitigating evidence.

2. Financial Strength:
   The balance sheet reveals a declining financial position. Fixed assets are minimal (£599) and current liabilities (£25,796) slightly exceed current assets (£25,471), resulting in a net current liability of £325. Total shareholders' funds have fallen sharply to just £274, reflecting accumulated losses or decreased equity. The erosion of equity and negative working capital position indicate weak financial resilience and limited buffer against operational shocks or economic downturns.

3. Cash Flow Assessment:
   The company’s liquidity is strained as indicated by the negative net current assets. Although current assets increased marginally from £19,460 to £25,471 year-on-year, current liabilities grew at a faster pace from £16,947 to £25,796. This imbalance suggests that short-term obligations may be difficult to meet without additional financing. Cash flow from operations is not explicitly disclosed but the negative working capital points to potential cash flow constraints. The director’s £10,000 advance may be a critical source of funding to support ongoing operations.

4. Monitoring Points:

• Track improvement or further deterioration in net current assets and shareholders’ funds in future accounts.
• Monitor director advances or external financing that may be required to maintain liquidity.
• Watch for timely filing of accounts and confirmation statements as compliance indicates management discipline.
• Assess any changes in operational scale or profitability that could improve cash flow and balance sheet strength.
• Review any new credit facilities or guarantees that might support working capital needs.