Company Number: SO307762

Analysis Date: 2025-07-07 22:35 UTC

1. Risk Rating: HIGH
   Justification: Extreme Tattoo LLP is a newly incorporated small limited liability partnership with minimal operating history and a negative members' equity position. Although it shows positive net assets, the significant loans due to members and absence of employees indicate potential dependency on member funding and limited operational scale, which raises concerns about solvency and sustainability.

2. Key Concerns:

• Negative Members’ Other Interests (-£8,509) indicating accumulated losses or capital deficiency that may impair financial stability.
• Reliance on loans from members (£15,224) as the primary financing source, which may not be sustainable and could pressure liquidity if members withdraw support.
• No employees reported during the accounting period, suggesting the business may not yet be operational or fully functional, raising questions about revenue generation and ongoing viability.

3. Positive Indicators:

• Modest tangible fixed assets (£2,569) represent some investment in business infrastructure supporting future operations.
• Current assets exceed current liabilities, resulting in positive net current assets (£4,146), which is a basic indicator of short-term liquidity.
• Compliance with filing deadlines, no overdue accounts or confirmation statements, indicating good regulatory standing and governance adherence to date.

4. Due Diligence Notes:

• Investigate detailed profit and loss data and cash flow statements (not filed) to understand revenue streams, operating expenses, and cash generation capacity.
• Clarify the nature and terms of member loans, including repayment schedules and whether these funds are likely to be sustained or require refinancing.
• Confirm operational status and business plan viability, including marketing, client base, and staffing strategy given zero employees reported.
• Assess member profiles and commitment given they hold significant control and provide funding, to evaluate risk of withdrawal or changes in support.
• Review any contingent liabilities or off-balance-sheet obligations that could affect solvency.