BASE FINANCIAL LIMITED

1. Risk Rating: HIGH Justification: The company is subject to an active proposal to strike off and has overdue statutory filings (accounts and confirmation statement), indicating a severe breakdown in governance or an intention to cease operations. Additionally, the balance sheet is thinly capitalized with minimal cash reserves, making the company highly vulnerable to financial distress if the substantial debtor book proves unrecoverable.

2. Key Concerns: * Active Proposal to Strike Off & Compliance Failures: The most critical red flag is the company's status ("Active - Proposal to Strike off"). This, combined with overdue accounts (due Dec 2022) and an overdue confirmation statement (due June 2023), suggests the company is either being voluntarily wound down by directors or is facing compulsory strike-off by Companies House for non-compliance. * Liquidity & Debtor Dependency: As of the latest filed accounts (Dec 2020), cash reserves stand at a mere £2,764, while current debtors total £75,522. The company's liquidity is entirely dependent on the collectability of these debtors. If a significant portion of this debtor book defaults, the company will be unable to meet its short-term creditor obligations of £36,234. * Thin Capitalization and Long-term Debt: Net assets are extremely thin at £1,810. The introduction of a £50,000 long-term creditor in 2020 significantly altered the capital structure. With total liabilities of £50,000 falling due after more than one year, the company lacks an equity cushion to absorb any operational losses or asset impairments.

3. Positive Indicators: * Positive Working Capital: Despite the low cash position, the company reported positive net current assets of £42,052 in 2020, indicating that theoretically, current assets exceed current liabilities. * Revenue Generation & Profitability: The 2020 accounts show retained earnings increasing from £701 to £1,570, suggesting the company was capable of generating a profit during that period, and the substantial debtor book implies active trading operations prior to the filing delinquency. * Clear PSC Structure: The ownership and control structure is transparent, with three individuals (Xxxxxxxname shown to subscribers, Xxxxxxxname shown to subscribers, Xxxxxxxname shown to subscribers) each holding between 25% and 50% of shares and voting rights, which provides clarity regarding ultimate control.

4. Due Diligence Notes: * Strike-off Status: Urgently verify whether the strike-off action was initiated by the directors (voluntary) or by the Registrar (compulsory). If compulsory, determine if it has been suspended due to impending action by a creditor. * Debtor Composition: Investigate the nature of the £75,522 debtors. Given the SIC code (64999 - Financial intermediation not elsewhere classified), these may be inter-company balances, loans, or trade debtors. The viability of the business hinges on these being recoverable. * Long-term Creditor Identity: Clarify the nature of the £50,000 long-term liability introduced in 2020. Determine if this is a director's loan, a related-party loan, or external debt, and review the terms of repayment. * Data Anomalies: Note the discrepancy in the registered address (overview shows Tonbridge, while 2020 accounts list Sevenoaks) which may indicate a recent change or an error. Furthermore, Director Xxxxxx Xxxxxxxxname shown to subscribers's resignation is listed as "2026-09-22"—a future date—suggesting a data entry error or a specific contractual arrangement that requires clarification. * Current Trading Status: Confirm whether the company is still actively trading. The combination of a strike-off proposal and missing filings strongly suggests the company may be dormant or ceased operations post-2020.

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