Risk Assessment: VOODOO GROUP LIMITED

1. Risk Rating: MEDIUM

The company demonstrates consistent profitability and growing net assets over multiple years, but exhibits concerning liquidity trends with a significant cash decline alongside rising debtors and substantial financial commitments. The presence of a CBILS loan secured by a floating charge over all assets elevates creditor risk, while incomplete disclosure on directors' advances limits full assessment.

2. Key Concerns

a) Deteriorating Liquidity Profile Cash at bank has fallen from £274,385 (2024) to £158,264 (2025) – a 42% decline of £116,121. Simultaneously, debtors have surged from £37,746 to £144,671 – a 283% increase. This pattern warrants scrutiny: it may indicate delayed customer payments, extended credit terms, or potential collection issues. Net current assets have correspondingly fallen from £178,723 to £93,623 (48% decline), reducing the working capital buffer.

b) Secured Debt with Floating Charge The CBILS loan of £65,000 (reduced from £117,000) carries a fixed and floating charge over all company assets. This gives the lender priority claim over assets in any insolvency scenario and significantly reduces recovery prospects for unsecured creditors. The company also carries £82,869 in hire purchase commitments and £235,080 in non-cancellable operating lease obligations, creating substantial fixed cash outflows.

c) Incomplete Directors' Advances Disclosure The filed accounts text is truncated at the directors' advances section, cutting off at "R" – likely the beginning of a director's name. Without the full disclosure, it is impossible to assess whether directors have extracted funds through loans or advances, which is a common red flag in private companies. The PSC register also contains a "persons with significant control statement" entry, suggesting incomplete ownership transparency.

3. Positive Indicators

a) Consistent Profitability and Equity Growth Retained earnings have grown from £188,387 (2024) to £267,289 (2025), an increase of £78,902, indicating the company generated meaningful profit during the year. Net assets have grown from £340,391 to £419,293 (23% increase). Over five years, net assets have grown from £88,212 (2021) to £419,293, demonstrating sustained value creation.

b) Long Operating History Incorporated in 2007, the company has operated for 18 years through multiple economic cycles, including the pandemic period. Survival through COVID-19 in the event catering sector (SIC 56210) – a sector severely impacted by restrictions – suggests operational resilience.

c) Asset-Backed Balance Sheet Tangible fixed assets of £436,589 (including £182,114 held under hire purchase) provide some asset backing. The company is investing in its asset base, with £225,786 in additions during the year, suggesting ongoing operational commitment.

4. Due Diligence Notes