The Press and Journal (Inverness, Highlands, and Islands)
Five-a-side firm’ s own goals hit share price
Leisure: Turnaround plans delayed
Scottish five-a-side football firm Goals Soccer Centres had millions of pounds wiped off the value of its shares yesterday after it reported falling profits.
It also said turnaround plans were taking longer than expected, though it insisted a joint-venture with City Football Group (CFG) – the Middle East-backed owner of clubs including Manchester City, Spanish La Liga side Girona and New York City FC – would be “transformational”.
The East Kilbride-based firm suffered a 25.7% fall in pre-tax profits to £2.6million in the first six months of the year, and said likefor-like sales in the second half would grow at a slow- er rate than anticipated. Shares tumbled by more than 9%, to 94.5p, after Goals added the slowdown was linked to underperforming sites which had “not received the required level of arena investment”, and pressure on consumer spending.
But revenue in the six months to June 30 was up by 2.2% year-on-year to £17.4million, while like-forlike sales grew 1.6%.
Chief executive Mark Jones said: “We have begun our journey in turning round the business and there remains considerable opportunity to deliver continued improved performance and returns.”
Goals, which swung back into the black last year after losses in 2015, has 48 sites, including two in the US. It is expected to benefit from a new strategy under Mr Jones. Part of his five-year plan includes a refurbishment programme, which has seen upgraded ProTurf pitches, new LED lighting systems and renewed stadia boards at pitches across its estate.
In July, Goals agreed a 50:50 joint venture with CFG which will stump up £12million to finance the launch of new sites across America.
The company also plans to launch Goals Junior Academy into vibrant junior and youth markets before the end of the year.
Goals’ first half results came as it also called time on merger talks with rival Powerleague.