MCGOWAN SURFACING LTD

Executive Summary

McGowan Surfacing Ltd, a micro-entity focused on civil engineering projects, displays solid liquidity and growing net assets with no compliance issues. The company benefits from a strong balance sheet but has a limited operating history and concentrated ownership, warranting further investigation into operational sustainability and governance. Overall, the risk profile is low based on available financial data and filing records.

MCGOWAN SURFACING LTD - Analysis Report

Company Number: NI684623

Analysis Date: 2025-07-20 19:07 UTC

1. Risk Rating: LOW
   McGowan Surfacing Ltd demonstrates a strong liquidity position and positive net assets across the most recent financial years. The company is current with filings and shows no signs of regulatory non-compliance or distress.

2. Key Concerns:

• Limited Operating History: Incorporated in late 2021, the company has a relatively short track record, which limits the ability to assess long-term operational sustainability.
• Single Director and PSC Concentration: Control is concentrated entirely with one director/shareholder, which could pose governance and succession risks.
• Minimal Fixed Assets: The low value of fixed assets relative to current assets suggests potential reliance on short-term contracts or variable work, which may introduce volatility in income.

3. Positive Indicators:

• Strong Liquidity and Working Capital: Net current assets have increased significantly from £7,106 in 2021 to £28,404 in 2024, indicating good short-term financial health.
• Growing Net Assets and Shareholders’ Funds: Equity nearly tripled from £11,106 in 2021 to £29,975 in 2024, showing retained earnings or capital injections strengthening the balance sheet.
• Up to Date Compliance: No overdue accounts or confirmation statements, indicating good regulatory compliance and governance discipline.

4. Due Diligence Notes:

• Verify revenue and profit trends underlying the growth in net assets to assess operational sustainability and profitability.
• Assess the nature of current assets (e.g., cash, receivables, inventory) to evaluate liquidity quality.
• Investigate customer concentration and contract terms given the SIC code indicating civil engineering projects, which can be project-based and cyclical.
• Review any off-balance-sheet liabilities or contingent risks not disclosed in the micro-entity accounts.
• Confirm the director’s experience and plans for business continuity given sole control.