Goals Soccer Centre takes a hit as profit drops, H2 growth seen slowing
Shares in five-a-side football pitch operator Goals Soccer Centres fell sharply after the company posted a drop in interim pre-tax profit and warned that like-for-like sales in the second half would grow more slowly than originally expected.
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In the six months to the end of June, statutory pre-tax profit declined to £2.6m from £3.5m in the first half of 2016, on sales of £17.4m from £17m. Meanwhile, operating costs rose by £1m to £12.5m.
Like-for-like sales for the period were up 1.6% versus a 2% drop the year before. On an adjusted basis they were up 2.5%.
The company said it anticipates growing like-for-like sales in the second half, but at a slower rate than originally expected. This is principally due to some clubs underperforming which have not received the required level of arena investment. In addition, the group said it was "highly cautious" about the pressure on consumer spending.
Chairman Nick Basing said: "This has been a crucial phase in rebuilding the company to secure a profitable future. With our investment in both the Arena upgrade programme and Clubhouse 2020 modernisation, the board is confident that we will deliver improved returns over time for shareholders.
"The joint venture with CFG, the global football group who own Manchester City and New York City Football Clubs amongst others, is a transformational deal. It allows Goals to profitably develop the nascent North American market, and at the same time invest the cash generated in the UK on developing our proposition in our domestic market."
At 1000 BST, the shares were down 9.4% to 94.50p.