Company Number: 13659131

Analysis Date: 2025-07-20 18:57 UTC

1. Credit Opinion: DECLINE
   Hear Me Raw Ltd, a micro-entity operating in retail sale of pet food and related products, shows significant financial stress and weak liquidity. The latest accounts indicate net liabilities of £14,151 versus net assets of £15,700 the prior year, reflecting a negative equity position. Current liabilities exceed current assets, producing a negative net working capital of £3,735 in 2023, which is a deteriorated position from a positive £5,677 in 2022. This raises concerns about its ability to meet short-term obligations and service any debt facility reliably. The company is young (incorporated 2021) and remains a very small operation with only 2 employees, limiting operational resilience. No evidence of profitability or cash generation is provided, and the decline in working capital and net assets suggests a weakening financial trajectory.

2. Financial Strength:
   The balance sheet shows minimal fixed assets (£7,287) and small current assets (£7,786). However, current liabilities have increased to £11,521 and long-term liabilities remain substantial at £17,703. The negative net current assets and negative total net assets position indicate the company is technically insolvent on a net asset basis. Shareholders' funds are negative, implying accumulated losses or capital erosion. The small scale and micro-entity status limit the financial buffer available to absorb shocks.

3. Cash Flow Assessment:
   Current assets are significantly lower than current liabilities, indicating liquidity strain. The decline from positive to negative net current assets within one year signals cash flow challenges. Without detailed cash flow statements, the working capital position suggests the company may struggle to generate sufficient cash to cover immediate liabilities. The small employee base and micro scale may limit overheads but also limit cash inflows. There is no indication of external financing or cash reserves.

4. Monitoring Points:

• Working capital improvements: Watch whether current assets increase relative to current liabilities in future filings.
• Profitability and cash flow trends: Monitor for signs of sustained profitability or improved cash generation.
• Debt levels: Track any changes in creditor amounts falling due after more than one year.
• Director and shareholder stability: Directors and PSCs remain consistent; any changes could affect governance.
• Filing timeliness and compliance: Currently up to date, continued compliance is critical.