YOUDE LTD

Executive Summary

YOUDE LTD has shown improving financial health with increased net assets and positive working capital, yet liquidity remains constrained due to low cash balances and growing long-term liabilities. The company’s concentrated ownership and limited operational scale suggest governance and operational risks that warrant further review. Compliance with filing requirements is satisfactory, supporting regulatory stability.

YOUDE LTD - Analysis Report

Company Number: 12894134

Analysis Date: 2025-07-29 20:41 UTC

1. Risk Rating: MEDIUM
   The company demonstrates improving net asset position and positive working capital but carries a moderate level of long-term liabilities and limited cash reserves, indicating some solvency and liquidity risk.

2. Key Concerns:

• Low Cash Reserves: Despite net current assets improving to £3,386 in 2024, cash on hand remains low at £1,681, which may pressure short-term liquidity.
• Long-Term Liabilities Growth: Creditors falling due after more than one year increased to £2,025 from £992 in 2023, signaling rising debt obligations that could affect solvency if not managed.
• Single Director and Shareholder Concentration: The company is controlled 100% by one individual who is also the sole director, which may raise governance and operational risk concerns from an investor standpoint.

3. Positive Indicators:

• Improved Financial Position: Net assets increased significantly from £502 in 2023 to £2,519 in 2024, reflecting enhanced equity and profitability.
• Positive Net Current Assets: The company shows positive net current assets (£3,386 in 2024) indicating an ability to cover short-term liabilities with current assets.
• Timely Filings and Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance so far.

4. Due Diligence Notes:

• Review the nature and terms of the long-term creditors to assess repayment risks and covenants.
• Evaluate cash flow statements and forecast to confirm liquidity position beyond balance sheet snapshots.
• Investigate the business model sustainability and client contracts given the limited scale (single employee) and industry risk profile (security services).
• Confirm absence of director disqualifications or legal actions against the sole director for governance risk assessment.