Funtastic Limited Share Price Drops 21.05% as Business Faces Collapse

Share decline isn’t the only concern for Funtastic Limited [ASX:FUN]. Their half year report put forth figures, placing the company’s future in a questionable state.

With a fall in revenue, lower costs and losses for the latest half year results — bad in comparison to last year’s figures.

Its financial figures are worse than expected, but the company’s directors and auditors are yet to show concern for the company, having neglected to address the growing issue it faces.

Their shares dropping by a 21.05%, shows how dire their situation has become.

Funtastic distributes sporting and lifestyle products in Australia, Hong Kong and the US.

Their headquarters are located in Mount Waverley, Australia.

Potential ASX delisting and falling figures

Funtastic will operate as normal and continue to acknowledge its concern for the year, while preparing financial statements on this basis.

Share café.com reported that Funtastic stated:

Should the Group’s actual results vary significantly from forecast and it is unable to manage any shortfall through the measures outlined above, a material uncertainty would exist as to whether the Company and the Group will be able to continue as a going concern and therefore whether they will realise their assets and discharge their liabilities in the normal course of business.

The company incurred a loss before tax, which was a result from its continuing operations worth  almost $2 million dollars.

Their net liability scaled to $45,285,000, and net asset deficiency is at a worrying level.

The company’s financial performance has been negative throughout the year.

Despite its short comings, the company does have an upbeat outlook on the future. They have secured a number of new agencies which will contribute to returning the company’s growth.

Regards,

Ryan Clarkson-Ledward,
For Money Morning

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Ryan Clarkson-Ledward is an Editor at Money Morning.

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