BLOOM ASSET MANAGEMENT LTD

Executive Summary

Bloom Asset Management Ltd has demonstrated a strong recovery from prior financial deficits, now showing healthy liquidity and positive equity. The company’s financial condition is stable with manageable short-term obligations, though long-term liabilities require monitoring to maintain growth sustainability. With prudent financial management and support from its parent company, the outlook is cautiously optimistic.

BLOOM ASSET MANAGEMENT LTD - Analysis Report

Company Number: 13658230

Analysis Date: 2025-07-20 19:13 UTC

Financial Health Score: B

BLOOM ASSET MANAGEMENT LTD demonstrates a solid turnaround in financial health over the recent fiscal year, showing promising signs of recovery and positive working capital. While still in the early stages of growth, the company’s financial "vital signs" indicate improving stability and a strengthening balance sheet, though cautious monitoring is advised given the small scale and micro-entity status.

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Key Vital Signs

Metric	2023 Value	Interpretation
Current Assets	£182,157	Healthy accumulation of liquid assets, good cash buffer
Current Liabilities	£87,684	Manageable short-term debts, less than current assets
Net Current Assets	£94,473	Positive working capital indicates liquidity strength
Creditors (Long-term)	£41,775	Some longer-term obligations to monitor
Shareholders Funds	£52,698	Positive equity after prior losses, showing recovery
Employee Count	2	Small, manageable workforce consistent with micro status

Interpretation:
The company has moved from a net liability position in 2021 and 2022 (shareholders funds negative at -£2,269) to a positive net asset position (£52,698) in 2023. The significant increase in current assets from £1 to £182,157 suggests a major cash inflow or asset acquisition, improving liquidity. Current liabilities increased but remain well covered by current assets, resulting in a strong positive net current asset position (working capital). This indicates the company’s ability to meet short-term obligations comfortably.

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Symptoms Analysis

• "Healthy cash flow" signs: The surge in current assets implies the company has either raised capital, improved receivables collection, or secured more cash reserves, which is crucial for operational stability.
• "Symptoms of distress" in prior years: Negative shareholders funds in 2021 and 2022 indicated losses or accumulated deficits, putting the company in a fragile financial state.
• Improvement trajectory: The reversal to positive equity demonstrates effective management actions or capital injection from the parent company Bloom Real Estate Limited, which holds full control.
• Micro-entity constraints: As a micro company, financial disclosures are limited, but the data available shows no alarming liquidity or solvency signals for now.
• Long-term creditor increase: The rise in long-term creditors from £1,625 to £41,775 warrants monitoring, as it may reflect loans or deferred payments that could pressure future cash flows.

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Diagnosis

BLOOM ASSET MANAGEMENT LTD’s financial health resembles a patient recovering from a period of financial strain ("previously ill") now showing strong vital signs — liquidity and equity are improving, suggesting the company is stabilizing and growing. The business is no longer "in distress," and the balance sheet reflects a healthier state. However, the relatively high long-term liabilities require ongoing vigilance to ensure they do not become a burden.

The company benefits from full ownership by Bloom Real Estate Limited, likely providing financial support and strategic direction. With only two employees, operational overheads remain low, which supports sustainability during growth phases.

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Recommendations

1. Maintain Liquidity Discipline: Continue to manage current assets and liabilities carefully to preserve positive working capital. Avoid overextending credit or inventory investments.
2. Monitor Long-Term Liabilities: Review the terms of long-term creditors to ensure manageable repayment schedules and avoid refinancing risks.
3. Enhance Profitability Tracking: Since profit and loss accounts were not included, begin preparing internal profit and loss monitoring to detect early symptoms of operational inefficiencies.
4. Plan for Growth Capital: As a growing micro-entity, consider strategic capital injections or revenue diversification to build reserves and fund expansion without risking over-leverage.
5. Compliance and Reporting: Ensure timely filing of accounts and confirmation statements to maintain regulatory health and avoid penalties.
6. Leverage Parent Company Support: Utilize the backing of Bloom Real Estate Limited for strategic advice, financial support, and governance improvements as needed.

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