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I hope this information is what you need: https://www.gardeningknowhow.com/ornamental/shrubs/azalea/pruning-azaleas.htm
Don't know if you're already familiar with the Master Gardener program (I'm guessing you're in the UK,) but if you don't know about them, they could be really helpful for you. This link will help you locate the local organization: http://mastergardeners.org.uk/get-involved/find-your-nearest-master-gardener/

If the roots are mushy, this is a sign of root rot. This article may help (https://www.gardeningknowhow.com/plant-problems/disease/treating-root-rot-gardening-tips-for-housplants.htm), but with azaleas, it may be a more damaging form called phytophthora root rot (https://www.gardeningknowhow.com/ornamental/shrubs/azalea/phytophthora-root-rot-azaleas.htm).

The white balls are simply fertilizer. The nursery adds these time release capsules to the soil to eventually break down and fertilize the plants.

Are the leaves yellowing? Has it recently been fertilized or did you just bring it indoors?

Now is not the time to be pruning this plant and planting outdoors may not be an option (depending on where you live) just yet. Additional information could make it easier for us to help out with this issue.

If the white, fluffy coating is on the soil, as well as leaves, this could simply be mold or a fungus from too much moisture. Allowing the pot to dry out some and treating with a fungicide, like neem oil, should help. It could also be an insect pest, since you notice distorted leaves. Anything from mites to mealy bugs could be the culprit. Check the leaves closely for insects and remove any affected leaves. You can also treat the shrub with neem oil for insect pests too. Here is more information: https://www.gardeningknowhow.com/problems/pests/neem-oil-uses.htm

Trim the branches back to a point where the stems are soft and bendy. If they snap and break they are dead.
Here are a few articles with more information.

https://www.gardeningknowhow.com/ornamental/shrubs/azalea/no-leaves-on-azalea.htmhttps://www.gardeningknowhow.com/ornamental/shrubs/azalea/azaleas-noteworthy-shrubs-for-any-garden.htm

Is there any sign of distress on the azalea besides the wilted blooms? What about the leaves? Do you typically prune over the winter months or was that just this year?
Is this an indoor or outdoor plant?

There are a few reasons this could be happening:

* Did the azalea experience a frost or freeze? This will damage azalea buds causing them to brown and fall off.

* An insect infestation - look for thrips - this article will tell you how:
https://www.gardeningknowhow.com/plant-problems/pests/insects/controlling-thrips.htm

* Bud blight (Botytris blight) which tends to happen after extended periods of rain. More information here:
https://www.gardeningknowhow.com/plant-problems/disease/treating-botrytis-blight.htm

* Bud blast wrought from environmental conditions (improper watering, temperature extremes, wrong lighting, too little humidity, etc.) More information here:
https://www.gardeningknowhow.com/plant-problems/environmental/bud-blast-in-flowers.htm