Firm working to resolve issues
Goals delays results after ‘accounting errors’ emerge
Off-field problems at five-a-side firm
Five-a-side football operator Goals has issued a profits warning after “certain accounting errors” emerged which will delay publication of its results.
The East Kilbride company is working with its auditors to resolve these errors which will see it breach its banking covenants. It is reviewing some accounting practices and policies.
In a statement the board said it is likely that it will take “a more prudent approach both for 2018 full year results and going forward.”
It added: “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.”
Goals operates outdoor small-sided soccer centres at 50 sites including four in California. Over the last 12 months it has 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.