BLOOM SERVICES CAPITAL LTD

Company Registration Number:
13559457 (England and Wales)

Unaudited abridged accounts for the year ended 31 December 2022

Period of accounts

Start date: 11 August 2021

End date: 31 December 2022

BLOOM SERVICES CAPITAL LTD

Contents of the Financial Statements

for the Period Ended 31 December 2022

Balance sheet
Notes

BLOOM SERVICES CAPITAL LTD

Balance sheet

As at 31 December 2022


Notes

17 months to 31 December 2022


£
Fixed assets
Tangible assets: 3 4,718
Investments: 4 7,837
Total fixed assets: 12,555
Current assets
Debtors:   6,782,248
Cash at bank and in hand: 140,380
Total current assets: 6,922,628
Creditors: amounts falling due within one year:   (4,117,415)
Net current assets (liabilities): 2,805,213
Total assets less current liabilities: 2,817,768
Creditors: amounts falling due after more than one year: 5 (3,490,626)
Total net assets (liabilities): (672,858)
Capital and reserves
Called up share capital: 1
Profit and loss account: (672,859)
Shareholders funds: (672,858)

The notes form part of these financial statements

BLOOM SERVICES CAPITAL LTD

Balance sheet statements

For the year ending 31 December 2022 the company was entitled to exemption under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

The members have agreed to the preparation of abridged accounts for this accounting period in accordance with Section 444(2A).

These accounts have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The directors have chosen to not file a copy of the company’s profit & loss account.

This report was approved by the board of directors on 07 November 2023
and signed on behalf of the board by:

Name: James Hickson
Status: Director

The notes form part of these financial statements

BLOOM SERVICES CAPITAL LTD

Notes to the Financial Statements

for the Period Ended 31 December 2022

1. Accounting policies

These financial statements have been prepared in accordance with the provisions of Section 1A (Small Entities) of Financial Reporting Standard 102

Other accounting policies

General InformationBloom Services Capital is a Private Limited Company incorporated in the United Kingdom under the Companies Act 2006. The registered office is located at 12 Groveland Ct, London EC4M 9EH, UK. The company was incorporated on August 11, 2021. The Company incorporation number is 13559457. This is the Company's first financial year .The Company has extended the current accounting period to the financial year ending on 31st December 2022, which includes 4 months of the previous financial year. -The principal activity of the company is to provide short-term innovative financing solutions to online businesses. -The Company is a wholly-owned subsidiary of Bloom Group S.A., incorporated in the Grand Duchy of Luxembourg.-The company fully owns two subsidiaries: - (i) Bloom Technology Services Romania S.R.L. registered in Cluj Napoca, Romania, - (ii) and Bloom Services Capital 1 Ltd registered at 12 Groveland Ct, London EC4M 9EH, UK. -The Company exercises control over a Special Purpose Vehicle (SPV) Bloom Services Capital II Ltd as per the requirements of FRS 102. The SPV is a separate legal entity. The SPV is primarily involved in the acquisition and management of financial assets. -The Company qualifies as a small group and therefore qualifies for a consolidation exemption under the Companies Act. -The financial statements are prepared under the historical cost convention.-The financial statements are presented in pounds sterling (£), which is the functional currency of the Company.-Going concern: The financial statements have been prepared on a going concern basis as the directors have assessed the company's ability to meet its liabilities as they fall due for a period of at least 12 months from the date of approval of these financial statements.Going Concern basisThe financial statements of Bloom Services Capital have been prepared on a going concern basis, as the directors have assessed the entity's ability to continue as a going concern for at least 12 months from the date of the financial statements.The directors have considered a range of factors, including but not limited to, the entity's cash flow projections, the current economic environment, and the level of funding available to the entity. A-Working CapitalB-Macroeconomic FactorsC-Funding and liquidity A/ Working CapitalThe Company is a wholly-owned subsidiary of Bloom Group SA. This first accounting period covers a 16-month period, from August 11, 2021, to December 31, 2022. The shareholder’s deficit amounts to GBP 672,858 as of December 31st, 2022. This is driven mainly by upfront costs linked to the implementation of the UK operations. The Company started generating revenue in June 2022.The deficit has been funded via intercompany loans provided by the parent company, Bloom Group SA. Bloom Group SA has committed to providing support to the company as required on a continuous basis. B/ Macroeconomic factorsProspects for UK economic performance remain uncertain. The medium and longer-term impacts of the cost-of-living crisis, together with the implications of the UK’s new trading relationships post-Brexit and geopolitical tensions (heightened following the Russian military invasion of Ukraine) are still to be determined. This has resulted in significant cost inflation and therefore increased pressure for the Bank of England to continue to increase base rate from an unprecedented low level, with the latest increase being from 5% to 5.25% in August 2023. All of these factors result in increased pressure on affordability and a heightened risk that merchants may ultimately default on their payments. However, as of the report date there has been no material impact from these macroeconomic factors on the Company’s originated loans or cash flows.C/ Funding and liquidityTo originate its loan, the Company has currently access to three different pools of cash:A securitization arrangement with Bloom Services Capital II (BSC II). BSC II is funded through the issuance of Senior Notes.A credit facility provided by Bloom Group SA used to bridge the funding gaps and to finance the junior tranche of the senior facility.A second credit facility provided by Bloom Group SA used for working capital purposes. The analysis indicates that the company possesses and has access to sufficient funding resources to sustain its primary lending operations, which are instrumental in generating operating cash flows. Based on our business assessment, we anticipate consistent cash flow generation, despite the prevailing macroeconomic conditions.On this basis, the directors believe that Bloom Services Capital has sufficient support and financial resources to meet its liabilities as they fall due.Accounting policiesFinancial AssetsFinancial instruments are recognised under the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102. Financials are initially recognised when the company becomes party to the contractual provisions of the instrument. Basic financial assetsBasic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.Financial Liabilities:Basic financial liabilities, including trade and other payables and bank loans, are initially recognized at transaction price adjusted for transaction costs unless the arrangement constitutes a financing transaction, in which the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.A debt instrument is subsequently amortised at its effective interest rate.Trade payable for goods or services acquired in the ordinary course of business due within one year or less, accounts payable are classified as current liabilities. Amortised costs are calculated based on the undiscounted cash or other consideration expected to be received.If due for more than one year, they are classified as non-current liabilities. These are initially recognised at transaction price and subsequently amortised using effective interest.Investment in SubsidiariesWhen the Company has investments in shares that result in a controlling interest in another entity, the Company measures these investments at cost, in line with the provisions of FRS 102.Interest IncomeThe company recognizes interest income in accordance with the requirements of FRS 102. Interest income is recognized in profit or loss using the effective interest method.Other Fees and IncomeThe company recognizes fees and other incomes which are not part of the effective interest rate, when services are rendered, and obligations are satisfied.Tangible fixed assets and depreciation:Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases: Furniture's and fixtures: 20% Straight LineForeign Currency translation The company is engaged in foreign transactions, which are transactions that are denominated in currencies other than the functional currency of the company. The functional currency of the company is GBP. The company translates foreign currency transactions into GBP using the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are revalued at the exchange rate prevailing at the balance sheet date. Exchange gains and losses resulting from the revaluation of monetary assets and liabilities are recognized in the profit and loss account. Non-monetary items that are carried at fair value and denominated in foreign currencies are revalued at the exchange rate prevailing at the balance sheet date, with any exchange gains or losses being recognized in the profit and loss account

BLOOM SERVICES CAPITAL LTD

Notes to the Financial Statements

for the Period Ended 31 December 2022

2. Employees

17 months to 31 December 2022
Average number of employees during the period 3

Employee Benefits The company operates a defined pension contribution plan. Contributions are charged to the profit and loss account as they become payable in accordance with the rules of the plan.

BLOOM SERVICES CAPITAL LTD

Notes to the Financial Statements

for the Period Ended 31 December 2022

3. Tangible Assets

Total
Cost £
Additions 5,011
At 31 December 2022 5,011
Depreciation
Charge for year 293
At 31 December 2022 293
Net book value
At 31 December 2022 4,718

BLOOM SERVICES CAPITAL LTD

Notes to the Financial Statements

for the Period Ended 31 December 2022

4. Fixed investments

The Company controls the following entities as of reporting date:(i) Bloom Technology Services Romania S.R.L registered in Cluj Napoca, Romania.(ii) Bloom Services Capital 1 ltd Registered at 12 Groveland ct, London, EC4M 9EH , UKInvestment cost represents 100% Ownership of company's current shares

BLOOM SERVICES CAPITAL LTD

Notes to the Financial Statements

for the Period Ended 31 December 2022

5. Creditors: amounts falling due after more than one year note

The Amount GBP 3,490,626 is the loan outstanding to parent company as of balance sheet date.During the extended financial period, the company secured a Credit Facility from its parent company, Bloom Group S.A.

BLOOM SERVICES CAPITAL LTD

Notes to the Financial Statements

for the Period Ended 31 December 2022

6. Related party transactions

Related Parties TransactionDuring the extended year of operations the company has entered into transactions with related parties, all transactions are accrued at arm length. Under the small company exemption, the Company has decided to not disclose details of related party transactions.

BLOOM SERVICES CAPITAL LTD

Notes to the Financial Statements

for the Period Ended 31 December 2022

7. Post balance sheet events

Post-Balance sheet eventsSubsequent to the year-end, there was a change in the capitalization of the parent company level, Bloom Group SA. This infusion of capital has led to a change in the Ultimate Beneficial Owner (UBO) of the entity. As a result of this capital restructuring, Proponent Capital has emerged as the new principal shareholder. In addition, the business secured additional funding to continue to grow its lending book.