The Board of Goals Soccer Centres PLC (AIM: GOAL) a leading operator of outdoor small-sided soccer centres with 50 sites including four in California, North America, has over the last 12 months made significant changes to the leadership and operational management of the business, at both an Executive and non-Executive level, as well as appointing new Company Auditors.
As part of the review of the results for the financial year ending 31 December 2018, the Board, together with the Auditors, are working to resolve certain accounting errors, and are reviewing some accounting practices and policies. It is likely that the Board will take a more prudent approach both for 2018 full year results and going forward.
As a result, the Board now expects the 2018 full year results will be materially below expectations and that the reporting date (previously 12 March 2019) will be delayed.
Whilst the majority of these accounting adjustments are of a non-cash nature, this does nevertheless mean that the Company will have exceeded one of its banking covenants at 31 December 2018. We are in discussions with the bank with a view to agreeing re-negotiated facilities.
The Board would also like to confirm that trading in the first two months of the year has been strong with an increase in like-for-like sales, in both the UK and US, over the comparable period in 2018.
The Company will make further announcements in due course.