3rd Sep 2013 09:50
LONDON (Alliance News) - Goals Soccer Centres PLC Tuesday reported higher revenues in the first half of the year, boosted by a strong performance by its US site.
The UK outdoor football facilities company, which currently operates 43 centres in the UK and one in Los Angeles, said the strong trading performance from its US site, which generated sales growth of 35% in the half, confirms the growth potential for a future roll-out of the concept in the US.
Goals said its new website, alongside supporting mobile applications, is now in development.
Revenues rose 1.8% to GBP16.6 million in the first half of the year to June 30, compared with GBP16.3 million a year earlier. It said like-for-like sales were up 1%, and the company now has a 42% share of the UK-branded five-a-side football market.
Goals said pretax profit was GBP4.1 million in first half of the year, down slightly from a profit before exceptional items of GBP4.4 million a year earlier. The company blamed the decrease on a GBP200,000 increase in head-office costs, as well as bad weather conditions. The year-earlier period was affected by GBP2.8 million in net exceptional expenses related to the legal costs of an aborted takeover and of a VAT case, as well as the impairment of assets under construction.
Goals reported a net profit of GBP3.1 million in the first six months ending June 30, compared with a net profit of only GBP447,000 a year earlier.
The company said that UK like-for-like sales in its major core football business, which represents 75% of its overall sales, were flat. It also said that birthday parties and corporate events, which both represent 4% of overall sales, rose by 10% and 34%, respectively, buoyed by a successful digital marketing campaign and several large national events.
However, the company said its bar and vending-product sector declined 7%, as customers reduced their mid-week alcohol intake, although it said its weekend bar sales have been maintained.
Goals Soccer Centres said that its overall gross profit margin increased from 89% to 90%, due to an improved sales mix towards the higher-margin football product, and tight control over sales costs.
It said its average overheads per centre increase by 4% to GBP153,000, compared with GBP147,000 a year earlier, largely due to a GBP5,000 increase in business rates payable per centre.
The company said its cash generated from operations increased by 26% to GBP4.8 million in the period, while it reduced its net bank debt by 11% to GBP48.1 million.
Goals Soccer Centres maintained its dividend at 0.675 pence per share.
Shares were trading down 0.81 pence at 151.19p mid-morning Tuesday.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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