GOAL7 LIMITED

Executive Summary

Goal7 Limited presents a low-risk profile based on strong liquidity, positive net assets growth, and good compliance with filing requirements. The company shows operational expansion with increased cash reserves and workforce size. Key areas for further review include debtor quality, governance structure due to concentrated ownership, and detailed profitability analysis to confirm sustainable business performance.

GOAL7 LIMITED - Analysis Report

Company Number: SC668264

Analysis Date: 2025-07-29 16:53 UTC

1. Risk Rating: LOW
   Goal7 Limited demonstrates a strong financial position with substantial net current assets and positive net assets. The company is current on all statutory filings, has no overdue accounts or overdue confirmation statements, and operates within the private limited company framework with no indications of insolvency or liquidation.

2. Key Concerns:

• Concentration of control: Two directors collectively control 100% of shares and voting rights, which may present governance risks due to lack of broader oversight.
• Absence of an audit: The company is exempt from audit requirements, which means financials are unaudited and may lack external verification.
• Lease commitments: The company has operating lease obligations of £14,500 annually, which is not significant currently but should be monitored as fixed costs.

3. Positive Indicators:

• Strong liquidity: Cash balances increased to £569k in 2023, supporting operational cash flow needs.
• Growing net assets: Net assets nearly doubled from £364k in 2022 to £664k in 2023, indicating profitable growth or capital infusion.
• Increasing debtor balances matched by increased current assets, suggesting expanding business volume with receivables management in place.
• Compliance: No overdue filings and timely submission of accounts and confirmation statements reflect good regulatory compliance and governance discipline.
• Operational stability: The company has grown its workforce from 7 to 13 employees in one year, consistent with business expansion.

4. Due Diligence Notes:

• Review detailed profit and loss statements and cash flow to confirm profitability and cash conversion cycles, as these were not provided in the accounts.
• Assess the quality and aging profile of trade debtors to evaluate credit risk and potential liquidity issues.
• Examine lease terms for any hidden liabilities or escalation clauses affecting future cash outflows.
• Evaluate the governance framework given the concentrated shareholding and director control to ensure adequate checks and balances.
• Confirm the nature and performance of the subsidiary (Goal7 LLC in the USA) to understand group risk exposure.
• Validate the assumptions underlying going concern statements, especially considering the rapid asset growth and increased provisions for liabilities.