Goals suffers a loss of form as shares take a hit from falling profits
SHARES IN five-a-side football firm Goals Soccer Centres slumped 10 per cent after the firm reported falling profits – the latest retailer to be hit by the consumer slowdown.
The firm reported a 26 per cent fall in pre-tax profit to £2.6m in the first half of the year, and said that like-for-like sales in the second half will grow at a slower rate than anticipated.
The news follows warnings from sofa specialist DFS Furniture and double glazing firm Safestyle as consumers rein in spending amid higher inflation and falling wage growth.
Goals said the slowdown is linked to pressure on consumer spending and underperforming sites which have “not received the required level of arena investment”.
The firm added the “turnaround to profitable growth is taking slightly longer than anticipated”. Revenue in the six months to June 30 rose 2.2 per cent to £17.4m while like-for-like sales grew 1.6 per cent and boss Mark Jones struck a positive note.
“We have begun our journey in turning round the business and there remains considerable opportunity to deliver continued improved performance and returns from the business,” he said.
Goals returned to profit last year after posting a loss in 2015 and has been boosted by 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 also agreed a 50:50 joint venture with Manchester City owner City Football Group.