3rd Jun 2016 06:56
LONDON (Alliance News) - Goals Soccer Centres PLC on Friday said it has raised funds through a share placing to back its new strategic plans, including growing its core estate in the UK and expanding its international presence.
The five-a-side soccer centre operator said it has conditionally raised GBP16.8 million through the placing of 16.8 million shares at 100.00 pence each. Shares in the company closed at 103.5p on Thursday.
The firm said it will use the proceeds to fund its four new strategic priorities, which comprise: growing and innovating the UK core estate, developing new capabilities to move ahead of competitors, expanding internationally and unlocking asset potential.
In order to achieve the first priority of growing and innovating the UK estate, Goals will refurbish existing buildings to a new upgraded brand format, accelerate the arena modernisation programme and introduce new innovative technology to enhance the customer experience.
The second strategic priority of developing new capabilities will be achieved by developing value-added propositions aimed at underdeveloped growth segments, relaunching a quality offering for advanced booked customers, upgrading IT systems and "refreshing and reinvigorating the operating environment".
The third strategic priority regarding international expansion will be achieved by opening a centre in Pomona, Los Angeles in the second half of 2016, investigating market potential in Asia, and exploring other regions for market entry through "capital efficient routes".
Finally, in order to achieve the fourth strategic priority of unlocking asset potential, Goals will develop additional revenue-generating lines of business, explore development potential across the property estate and "remain open to potential accretive, complementary business opportunities".
Goals said its strategic plan aims to strengthen the group's position in the market, improve the return on capital employed, and increase shareholder value.
Goals anticipates a 30% earnings before interest, tax, depreciation and amortisation return on the arena modernisation, a 15% Ebitda return on clubhouse refurbishment, and a 20% Ebitda return on its pilot in the US.
It also expects to achieve earnings per share growth, a "strong and secure" balance sheet with the net to Ebitda ratio managed below 2.5 times, and increased shareholder returns through an uplift in equity value and a return to paying dividends in 2017 when the balance sheet recovers.
Last month, Goals ended the long search for a new chief executive when it appointed Mark Jones as the group's new CEO after Co-Founder and Managing Director Keith Rogers moved to the US to head up the group's operations there.
Last week Goals then appointed the CEO of Italian football team Inter Milan SpA, Michael Bolingbroke, as a senior independent non-executive director.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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