Former Goals CEO in finance probe
● Firm confirms investigations into actions of ex-boss and finance chief
Goals Soccer Centres, the East Kilbride-based five-a-side football operator tackling a major accounting blunder, has confirmed that its former bosses are under investigation over historic financial irregularities.
The embattled business is reeling from the discovery of “improper behaviour” by senior staff stretching back to “at least” 2010, leaving it with an estimated £12 million bill to HM Revenue & Customs.
In an update to the market, the company confirmed that the behaviour of ex-chief executive Keith Rogers and former chief financial officer Bill Gow while at Goals is part of a company probe into alleged fraud.
The fall-out has already seen shares suspended and left the company on the verge of being kicked off the stock exchange.
In a statement following press speculation, Goals said: “The company can confirm that actions undertaken by Mr Gow and Mr Rogers while employees and directors of the company form part of the current investigations of the company into the mis-statement of historic financial statements.
“The company can confirm no finalised conclusions have yet been reached, although as stated in the 2 August 2019 announcement by the company, it is clear inappropriate actions have taken place.
“Once the company has concluded its findings the directors will take appropriate action and liaise with the appropriate authorities.”
The statement from the company, which is listed on London’s junior Alternative Investment Market (Aim), came amid reports this weekend that the Financial Conduct Authority is also making inquiries into accounting irregularities at the firm.
Forensic accountants at BDO have reportedly alleged that Gow emailed Rogers asking him to “work your usual magic” to create fake invoices.
Allegations have also been made that Gow deleted old emails to “purge” records and that the pair were manipulating numbers to avoid VAT payments and breaching banking rules with its lender Bank of Scotland. The pair are said to have strenuously denied the allegations. KPMG, the company’s previous auditor, could face a legal challenge from the board and shareholders for failing to spot the issues.
In a blow to shareholders earlier this month, Goals said it does not expect its Aim shares to resume trading. Directors do not believe the firm can file its 2018 accounts by the 30 September deadline, which means it will be delisted from the stock market and investors will be wiped out.
In late June, heated words were exchanged at Goals’ annual meeting as Mike Ashley’s Sports Direct, which holds a 19 per cent stake in the business, continued to put pressure on the company but failed to oust directors.
Goals non-executive director Christopher Mills clashed with a representative of Sports Direct when asked whether board members would take a lie detector test over the accounting error.
Goals was founded in 2000 following a management buyout by Rogers and Gow and is one of the biggest players of its kind, running about 50 sites in the UK and the US.
Rogers left Goals in 2017 and Gow quit last year for teacake maker Tunnock’s, which was founded by his wife’s family.
“The company can confirm that actions undertaken by Mr Gow and Mr Rogers... form part of the current investigations”
GOALS SOCCER CENTRES