FUNCTIONALL LTD

Executive Summary

FunctionAll Ltd, a micro-entity in the physical well-being sector, presents a high-risk profile due to negative equity and minimal current assets relative to liabilities. Despite compliance with filing requirements and an active market presence, the company’s balance sheet indicates solvency and liquidity concerns that require further examination. Close scrutiny of operational cash flows and governance stability is advised before considering investment.

FUNCTIONALL LTD - Analysis Report

Company Number: 13559475

Analysis Date: 2025-07-29 20:02 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (£-440) as of the latest accounts, indicating insolvency on a balance sheet basis. Current assets are minimal (£9) compared to current liabilities (£449), signaling liquidity stress. The company is a micro entity, limiting available financial detail, but the negative equity and small asset base raise significant solvency and liquidity concerns.

2. Key Concerns:

• Negative Shareholders’ Funds: The company’s net liabilities position (negative equity) suggests it is technically insolvent, which is a major red flag for creditors and investors.
• Minimal Current Assets vs. Liabilities: Current assets of only £9 against current liabilities of £449 suggest the company may struggle to meet short-term obligations and operational expenses.
• Director Turnover and Control: Two directors resigned within a short period, leaving a single current director. Though not inherently problematic, this turnover combined with financial distress warrants further scrutiny of governance and operational stability.

3. Positive Indicators:

• Timely Filing Compliance: The company is up to date with its statutory filings (accounts and confirmation statements) with no overdue submissions, indicating regulatory compliance awareness.
• Active Website and Market Presence: The company maintains an active website with a clear business proposition in athletic training, suggesting ongoing trading activity and customer engagement.
• Clear Ownership Structure: The presence of three persons with significant control owning 25-50% shares each provides clarity on governance and control, reducing ambiguity around ownership.

4. Due Diligence Notes:

• Review Detailed Financial Transactions and Cash Flows: Investigate the underlying causes of the negative equity position and minimal current assets, including any off-balance sheet liabilities or contingent liabilities.
• Assess Operational Viability: Verify whether the company is generating sufficient revenue and cash flow to sustain operations given the low asset base and current liabilities.
• Director Background Checks and Intentions: Given recent director resignations, examine the reasons for departures and the current director’s plans to address financial challenges.
• Examine Creditors and Debt Terms: Clarify the nature of the £449 current liabilities and any longer-term creditor arrangements that could affect solvency.
• Confirm No Related Party or Contingent Liabilities: Although no off-balance sheet disclosures are stated, confirm if any exist that could worsen financial risk.