Ashley-backed uncovers tax scandal
FRASER WILSON
Goals Soccer Centres say they have uncovered “improper behaviour” in the preparation of its financial accounts.
Earlier this year, the East Kilbride-based five-a-side firm warned shareholders it’s full-year results would be “materially below” expectations in both 2018 and 2019.
But now the company has blamed “a number of individuals” of misconduct and says it expects to find irregularities stretching as far back as 2010 “at least”.
And it is expected the company’s shares will be kicked off the stock exchange by September 30.
The five-a-side football business suspended trading in its shares in March after it discovered accounting errors dating back several years.
That led to ongoing talks with HMRC and the hiring of “forensic accountants,” as well as Deloitte to assess all options – including a possible sale.
In a statement, Goals said accounting issues stretched back nearly a decade, with “material uncertainty” surrounding its historical financial statements.
In June we told you how the firm had rejected shareholder Mike Ashley’s attempt to intervene in the accounting crisis, saying they did “not need to appoint further advisers” on this issue.
The Sports Direct tycoon has a 19 per cent stake in the firm and wanted to step in over the £12 million VAT blunder.
On Friday, directors revealed they did not expect to meet a September audit deadline and no longer expects shares to resume trading.
Goals, which has 50 sites in the UK and US, had a market share of £20 million when its shares were suspended.
In May, the firm issued a warning over its results for both 2018 and 2019 following a VAT misdeclaration, saying it may not be able to complete its 2018 audit by its June 30 deadline.
Despite the warning, it gave assurances that talks with lenders “remain positive,” adding that current trading has continued to be strong in the UK and US.
It was also dealt a blow recently with news that boss Andy Anson plans to quit after a year to become the new chief executive of the British Olympic Association.
Nevertheless, it said UK sales had increased over 11 per cent so far this year. They were up almost 15 per cent in the US where it runs sites in California.