Company Number: 14838484

Analysis Date: 2025-07-29 16:16 UTC

1. Risk Rating: LOW
   JJ Accounting Ltd shows a stable financial position with positive net assets and shareholders' funds, no overdue filings, and compliance with filing deadlines. The company operates within the micro-entity regime, minimizing complexity and associated risks.

2. Key Concerns:

• Limited Scale & Single Director: The company is very small (micro-entity) with only one employee (the director), which may pose operational risks if continuity or capacity is challenged.
• Low Net Current Assets: Although positive, net current assets have decreased significantly from £5,455 in 2024 to £1,169 in 2025, suggesting a tightening liquidity position.
• Reliance on Owner Control: Mr John James Duggan holds 75-100% ownership and voting rights, concentrating control and decision-making, which may impact governance and succession planning.

3. Positive Indicators:

• Compliance & Governance: No overdue accounts or confirmation statements, and filings are up to date, indicating good regulatory compliance.
• Positive Net Assets & Shareholders’ Funds: The company holds net assets of £2,565 as at 2025 year-end, showing a positive equity position despite being in early years of operation.
• Consistent Industry Focus: The SIC codes 70221 (financial management) and 69201 (accounting and auditing activities) align with the director’s professional background as an accountant, suggesting relevant expertise.

4. Due Diligence Notes:

• Review detailed Profit & Loss information not filed under micro-entity exemptions to assess profitability and cash flow generation.
• Assess client base and revenue streams to evaluate operational sustainability given the micro scale and limited staff.
• Confirm any contingent liabilities or commitments not disclosed in the balance sheet or notes, especially given the low working capital buffer.
• Investigate director’s plans for business growth, risk mitigation, and succession to understand long-term viability.