10th Mar 2015 08:00
LONDON (Alliance News) - Goals Soccer Centres PLC Tuesday reported a steep drop in pretax profit for 2014 due to charges related to the cancellation of an interest rate swap as part of its balance sheet restructuring , but its operating profit was broadly flat as the strength of sterling weighed on the growth it achieved in the US and UK margins declined.
The company, which runs 45 five-a-side soccer centres in the UK and one in Los Angeles reported a pretax profit of GBP6.8 million for 2014, down from GBP9.6 million in 2013, largely due to a GBP2.8 million expense related to the cancellation of an interest rate swap.
Its earnings before interest, tax, depreciation and amortisation was flat at GBP14.8 million, even as revenue ticked up to GBP34.7 million, from GBP33.7 million. Its like-for-like sales growth dropped to 2%, from 3% in 2013.
Sales in its UK centres rose to GBP33.6 million, from GBP32.7 million, and like-for-like sales were up 2%. However, the overall gross margin dropped to 89% from 90% due to higher sales of lower-margin birthday parties and bar sales. Overhead costs also rose as it put in a new HR and payroll system, and it expects overheads to rise about 4% in 2015 due to higher business rates.
US sales rose to USD1.7 million, from USD1.5 million, but the strength of sterling meant the translated sterling figures were GBP1.1 million, just slightly up from GBP1.0 million in 2013.
Despite this, the company raised its full-year dividend to 2.00 pence, from 1.85p.
It said sales in the first eight weeks of 2015 have been flat, which it put down to bad weather, but said sales have strengthened in the last three weeks as the weather has improved.
"Our new site pipeline continues to develop in both the UK and the US. With our re-engineered modular build, improved digital offering through the new website and the mobile app and our strengthened infrastructure and team, we are confident in making further progress in the current year and delivering attractive long term returns for our shareholders," Managing Director Keith Rogers said.
By Steve McGrath; [email protected]; @stevemcgrath1
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