New profits warning
Goals calls in forensic accountants over ‘historic errors’
Goals is in talks with lenders
Leisure group Goals Soccer Centres has hired forensic accountants to assess the extent of ‘historical accounting errors and policies adopted by the company’.
The East Kilbride based firm announced that due to the accounting issues profits for this year and the last 12 months will be below previous expectations.
On 26 March the company announced it was in discussions with HMRC regarding a potential mis-declaration of VAT.
As a result of the investigation into historic accounting treatments, the board said it was ‘mindful’ that it may not be in a position to complete its full year 2018 audit by the 30 June 2019 deadline as set out in the AIM Rules and Companies Act 2006, but it is endeavouring to complete this process as soon as possible and will make a further announcement as soon as it is in a position to do so.
Trading in the shares of the company remains suspended, and the board does not expect trading to resume until it has clarity on the financial position of the company, specifically any potential liability associated with the mis-declaration of VAT, and the audit of the 2018 financial results is completed and published.
Discussions with lenders are continuing, and the company remains positive as it seeks to ensure that it is appropriately funded.
The board said trading since 26 March has continued to be strong in both the UK and US, over the comparable period in 2018.
The company said it will make further announcements in due course as the results of the investigation become known.