Company Number: 13834905

Analysis Date: 2025-07-20 14:08 UTC

1. Risk Rating: LOW
   Bloom N Witches Ltd demonstrates a stable financial position for a micro-entity, with positive net assets and no overdue filings, indicating low immediate risk.

2. Key Concerns:

• Limited Scale and Capitalisation: As a micro-entity with modest fixed assets (£3,327) and low net current assets (£872), the company’s financial buffer is minimal.
• Modest Liquidity Cushion: Current assets only slightly exceed current liabilities, which may constrain the ability to absorb unexpected cash flow shocks.
• Young Company with Limited Operating History: Incorporated in 2022, the short trading history limits trend analysis and long-term sustainability assessment.

3. Positive Indicators:

• Positive Net Assets and Shareholders' Funds Growth: Net assets increased from £1,405 in 2023 to £3,719 in 2024, indicating retained earnings or capital injections.
• No Overdue Filings and Compliance: Both accounts and confirmation statements are filed on time, reflecting good regulatory compliance.
• Stable Ownership and Management: Two directors/owners hold equal control and are actively involved, which may support consistent decision-making.

4. Due Diligence Notes:

• Review detailed profit and loss information to assess operational profitability and cash flow trends.
• Investigate the nature and terms of current liabilities to evaluate any short-term financial pressures.
• Confirm absence of any director disqualifications or adverse regulatory issues beyond Companies House filings.
• Examine business model sustainability in the competitive café and unlicensed restaurant sector, particularly post-pandemic market conditions.
• Verify the business plan and forecasts given limited asset base and small employee count (average 3 employees).