Company Number: 13002290

Analysis Date: 2025-07-20 18:34 UTC

1. Credit Opinion: DECLINE
   KB Afungi Limited shows persistent and worsening negative net current assets and shareholders' funds over the last four years, indicating an ongoing capital deficiency. The company is reliant on financial support from its parent, Kerry Project Logistics (Italia) S.p.A., to meet obligations. The unsecured loan from group undertakings constitutes a significant portion of current liabilities and is repayable on demand, which poses liquidity risk. Without an improvement in profitability or external support, the company’s ability to service debt and meet commercial commitments independently is weak. Therefore, the credit risk is high and approval for new credit facilities is not recommended.

2. Financial Strength:
   The balance sheet reveals a consistently negative net asset position: shareholders’ funds deteriorated from -£34,893 in 2022 to -£74,665 in 2023. Current liabilities exceed current assets by approximately £75k at the end of 2023, worsening from £35k in 2022. The company’s fixed assets are not reported, indicating minimal long-term asset base. The dependence on intercompany loans and lack of equity buffer undermines financial resilience.

3. Cash Flow Assessment:
   Cash balances remain low (£20k at 2023 year end), and debtors are largely amounts due from group undertakings (£181k). The working capital deficit highlights potential short-term liquidity constraints. The company has no employees, indicating minimal operational overhead, but also limited internal cash generation capacity. Reliance on parent company funding to continue as a going concern confirms insufficient internal cash flow.

4. Monitoring Points:

• Continued liquidity position and cash flow from operations
• Parent company support and repayment terms of intercompany loan
• Trend in net current liabilities and shareholders’ funds
• Any changes in business model or operational scale that might impact cash generation
• Director changes or governance improvements that might affect financial stewardship