Goals reveals intentions to expand operations in America following an increase in its profits
GOALS Soccer Centres has declared plans to expand its presence in the US after reporting a 10 per cent hike in underlying profits.
The five-a-side operator revealed it has agreed terms on two further sites in Los Angeles as it posted underlying profits before income tax of £10.6 million in the year ended December 31. It hopes to open the first site in the current financial year.
The results showed that Goals maintained the growth it has seen in the US since opening its LA site in 2010, with sales rising by 13 per cent on a like-for-like basis.
Talks have been held over the opening of five sites in California, which has an estimated two million players, making it the second largest soccer market in the US.
With interest in soccer continuing to grow in the US, chief executive Keith Rogers said the scope for expansion as “fantastic”. He said: “The UK is still there, we know the market well, [and] we’ve got a good pipeline, but the US now sits there with equal prominence for us. It’s a potentially huge market and we understand that market, which is the crucial point.”
Goals saw sales rise by three per cent last year to £34.7m. The company took its portfolio to 46 with the acquisition of site in Newcastle. That has been followed since year-end with the addition of a site in Manchester, while a centre in Doncaster is on track to open in April. A further opening is also planned for the UK in the current year,
Mr Rogers hailed the impact made by its mobile app, which has been downloaded by more than 20,000 players in 10 weeks since its launch in December.
The app, free to download, removes the burden of organising payment from team captains, and helps captains find late player replacements. It also gives Goals access to more data on customers, allowing it to identify who they are, how often they play and who they spend time playing with.
Meanwhile, Mr Rogers said the company said it has not seen an adverse effect from the reduction of the drink driving limit in Scotland.
He noted that bar sales, which account for 18 per cent of revenue, had actually increased, its first growth in five years. Mr Rogers believes it is because people feel they have “a bit more money in their pocket”.
It also launched a new website to support smart devices.
The company proposed a final ordinary dividend of 1.325p per share, up 13 per cent, taking the full year dividend to 2p – up eight per cent on 2013.
Shares closed down 7p at 226.5p.