Company Number: SC736316

Analysis Date: 2025-07-29 15:04 UTC

1. Risk Rating: LOW
   Khole 3 Ltd exhibits a solid financial position for a company incorporated recently in 2022, with strong net assets and positive net current assets. The absence of overdue filings and a clean compliance record further reduce regulatory risk. The company’s liquidity appears healthy with substantial cash balances relative to current liabilities.

2. Key Concerns:

• Limited operating history: Incorporated less than two years ago, so there is limited historical financial performance data to assess operational sustainability and resilience.
• Modest share capital (£2.00) which might limit equity buffer in adverse conditions despite strong retained earnings.
• Industry sector (public houses, bars, catering) is typically sensitive to economic cycles and regulatory changes related to health and safety, licensing, and consumer trends, which warrants ongoing monitoring.

3. Positive Indicators:

• Strong balance sheet growth with net assets doubling from £52.7k to £103.2k within one year, indicating profitable operations or capital injections.
• Robust liquidity with cash of £146k against current liabilities of £106.6k, resulting in net current assets of £65.2k, suggesting comfortable short-term financial health.
• No overdue statutory filings; accounts and confirmation statements are filed timely, reflecting good governance and compliance discipline.
• Increasing fixed assets investment from £15.7k to £38.0k, signaling operational expansion or asset base strengthening.
• Directors and significant controllers appear stable with no red flags such as disqualifications or multiple resignations.

4. Due Diligence Notes:

• Review detailed profit and loss accounts if available (currently abridged accounts with no P&L included) to confirm profitability and revenue trends.
• Investigate the nature of fixed asset additions and depreciation policies to assess capital expenditure strategy and asset utilization.
• Understand cash flow dynamics given significant cash balances but also relatively high current liabilities. Confirm that liabilities are manageable and not indicative of supplier or tax arrears.
• Validate market position and competitive environment in the hospitality and catering sector to confirm operational sustainability.
• Confirm no contingent liabilities or off-balance sheet risks that might impact solvency.