News Column

Goals Soccer Centres Pretax Profit Falls But Optimistic On Outlook

September 3, 2014

Sam Unsted

LONDON (Alliance News) - Goals Soccer Centres PLC Wednesday said pretax profit dropped in the first half despite a rise in revenue and sales in the period, hit by restructuring costs, though it expressed confidence for the future and said the restructuring has positioned the company well for the future.

The group, which operates 5-a-side football centres, said pretax profit fell to GBP0.6 million in the six months to June 30 from GBP4.1 million in the same period last year. Goals incurred costs in the period of GBP3.8 million in total, with GBP3.2 million related to balance sheet restructuring.

The fall came despite revenue increasing 3.0% in the period to GBP17.1 million from GBP16.6 million a year earlier. Like-for-like sales also were up 3% overall, rising 3% in its UK arm and 7% in its US business. It currently operates only one site in the US, in Los Angeles, alongside its 44 centres in the UK.

The company said it would maintain its interim dividend at 0.675 pence per share.

The group said its strategy is now progressing well and said it is making good progress on its UK and US development pipeline. It has acquired a new centre in Newcastle during the period and is set to open a new site in Manchester, which is said will open on time and on budget in the current financial year.

In addition, Goals said its new mobile application and website have been completed and are on course to roll out in the third quarter.

In the half-year, the company raised GBP11 million via a share placing, while also restructuring its banking facilities, securing a GBP42.5 million, five-year non-amortising loan facility. The improvement to its balance sheet has resulted in a cut in the company's yearly interest costs of more than GBP1 million, it said.

"Following the completion of the balance sheet restructuring, the group has now secured more efficient long-term funding to finance its expansion plans for the UK and US. Our mid-year results are encouraging with sales and profit improvement across the estate and well-advanced plans to deliver two new centres in 2014 and three in 2015," said Goals Managing Director Keith Rogers.

"I am confident Goals now has the team, processes, strategy, funding and pipeline in place to accelerate long term growth for its shareholders," Rogers added.

Shares in Goals Soccer Centres were up 1.5% at the market open Wednesday to 216.25 pence.

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Source: Alliance News

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