Basset & Gold has filed its accounts for the year ending September 2018.
Basset & Gold is now one of the UK’s most visible issuers of unregulated bonds, thanks to its sponsorship of Premier League football team West Ham United.
It currently offers a one-year “Fixed Monthly Income Pensioner Bond” paying 4.24% over the year a 3-year IFISA paying 6.12% per year, and a 5-year IFISA paying 8.15%. All are capital at risk investments that, like any loan to a micro-cap unlisted company, have a risk of up to 100% loss.
According to its accounts, it now owes just under £30 million to investors, up from £13 million in 2017.
Its net assets position is slightly above water at £233,784.
At the time of its 2017 accounts, Basset & Gold’s assets consisted almost entirely of loans to a company registered in Cyprus, River Bloom Limited. B&G has now apparently shifted these loans into the UK; its assets now consist almost entirely of loans to a UK company, River Bloom UK Services Limited.
B&G’s auditors (Shaw Wallace) emphasise that the financial viability of B&G depends on the “counter party” to whom River Bloom UK Services Limited lends investors’ money. It seems likely that this counterparty is either the Cypriot company or another company controlled by Basset & Gold’s owner.
Emphasis of matter
…The valuation and recoverability of this loan from River Bloom UK Services Limited is dependent on the financial strength of the counter party to whom it advances investments. Whilst the management accounts of River Bloom UK Services Limited show a neutral position, the directors of Basset & Gold plc have carried out a thorough impairment review of the profitability, solvency, liquidity, forecasts [sic] as well as a review of the unqualified audited accounts of the counter party of River Bloom UK Services Ltd and are satisified that counter party maintains its ability to service the facility and repay investments to River Bloom UK Services Limited.
Under ISA auditing rules, the inclusion of this item as an “emphasis of matter” indicates that the directors being satisfied that RBUSL’s counterparty remains able to service its debt to RBUSL (and in turn to Basset & Gold’s investors) is fundamental to users’ understanding of the financial statements.
According to its last confirmation statement, Basset & Gold is majority-owned by Israeli Hadar Swersky.