Company Number: 14007219

Analysis Date: 2025-07-29 19:03 UTC

1. Risk Rating: HIGH
   Funky Group Ltd exhibits significant financial distress as evidenced by persistent negative net assets and net current liabilities, worsening over the last three years. The company’s liabilities exceed its assets, indicating potential insolvency risk.

2. Key Concerns:

• Negative Net Assets: The company’s shareholders’ funds are negative at £10,909 for the year ended 31 March 2025, deteriorating from previous years, signaling accumulated losses eroding equity.
• Negative Working Capital: Current liabilities exceed current assets by £14,750, suggesting liquidity constraints and challenges in meeting short-term obligations.
• Long-term Creditors: Introduction of £11,440 in creditors due after more than one year adds to financial leverage and may pressure cash flows in the medium term.

3. Positive Indicators:

• Compliance: The company is up to date with statutory filings for both accounts and confirmation statements, indicating adherence to regulatory requirements.
• Business Activity: The company operates in a growing retail segment (internet mail order sales) which has potential for scalability.
• Directors’ Stability: Both directors have been in place since incorporation, providing continuity in leadership.

4. Due Diligence Notes:

• Investigate the nature and terms of the £11,440 long-term creditors to understand repayment schedules and covenants.
• Review cash flow statements or management accounts (not available here) to assess operational cash generation and short-term liquidity management.
• Assess the business model and revenue growth prospects given the negative equity and working capital position.
• Request details on any external financing or shareholder support plans to cover funding gaps.
• Verify absence of director disqualifications or adverse legal proceedings beyond the information provided.