Final Results

Goals Soccer Centres plc

Final Results for the Year Ended 31 December 2014

Stronger business delivering profit growth of 10%

Goals Soccer Centres plc ("Goals" or the "Company"), the premier operator of 'next generation' 5-a-side soccer centres with 45 centres in the UK and one in Los Angeles, USA, is pleased to announce its final results for the financial year ended 31 December 2014.

Financial highlights

Operational highlights

· Further targeted investment in central infrastructure to support the enlarged scale of the business

· Continued strong US performance with like-for-like sales* up 13%

· Total estate increased to 46 with 2 centres added. Newcastle centre acquired 2014 and Manchester centre opened February 2015

· Doncaster centre under construction and due to open April 2015

· Innovative mobile app launched December 2014 with functionality aimed at improved customer experience and over 20,000 downloads to date

· Good progress made on UK and US pipeline, with headline terms agreed on two US sites

· New website launched December 2014 to support Smart devices which drives 70% of web traffic

Capital structure improved

· Successful Placing for £11m, well supported by new and existing shareholders

· Bank facilities restructured with a new £42.5m five year non-amortising loan facility agreed at significantly improved rates

· Net Debt / EBITDA reduced to 2.5 times (2013: 3.1 times) improving funding capacity

Current Trading

Sales for the first eight weeks of the year have been flat. This is as a result of adverse weather this year and mild weather last year which drove 6% sales growth. Sales have strengthened in the past three weeks as the weather has improved.

As a result of on-going initiatives including the launch of our new app and website, the strength of our core business, the expansion opportunity in the US and the improving economic backdrop we are confident of making further progress during this year and beyond.

Keith Rogers, Managing Director, said:

"2014 marked the first full year of the Group's Path to Success strategy and I am pleased to report good progress across the business. Notwithstanding considerable investment in central infrastructure to support our future growth plans, we have achieved 10% growth in underlying profits, helped by our restructured Balance Sheet, which has also provided us with the funding capacity to progress our rollout in both the UK and the US.

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."

10 March 2015

Enquiries:

*Like-for-like sales are based on centres opened prior to 1 January 2013 and are on a constant currency basis

**Underlying profit before tax is profit before tax adjusted for the impact of the net exceptional cost of £3.8m (2013: £NIL). Underlying Diluted Earnings Per Share is Diluted Earnings per Share adjusted for the net of tax impact of the exceptional costs and a constant tax rate of 21.3% as there was a large deferred tax credit in 2013 resulting in a tax rate of 12.9%. Exceptional costs of £3.8m relating to expensing bank arrangement fees on pre-existing bank facilities (£0.5m), repaying the liability of the Group's interest rate swap (£2.7m) and providing against debtors due to launch of Goals app (£0.6m)

***Adjusted Cash From Operating Activities is Cash From Operating Activities adjusted for the impact of the cash value of the exceptional costs of £3.1m

Chairman's Statement

2014 saw a strong focus on the continued implementation of our "Path to Success" initiative, which set out our key strategies to improve the overall returns of each centre through operational improvement and investment in central resource. During the year we made significant progress in all areas, and I believe that the Group has emerged stronger, more energised and better placed to realise the opportunities that lie ahead.

We remain confident in the long term growth potential of the UK market. With limited competitor activity, and relatively high barriers to entry, we believe Goals is well placed to realise this opportunity. We acquired a centre in Newcastle, opened a new centre in Manchester in February 2015 and have commenced construction on a new centre in Doncaster which is on schedule to open in April 2015. These centres take Goals into cities where previously we had no presence and further underpin our market leading position.

Our centre in Los Angeles continues to show strong growth with like-for-like sales up 13%. We now have a strong understanding of the Los Angeles market and our confidence in, and enthusiasm for the US opportunity continues to strengthen. We are in advanced discussions on a number sites within the Los Angeles metropolitan area and have agreed headline terms on two sites. We are hopeful of opening one of these in H2 2015.

Our new and innovative mobile app and website were launched in December 2014 which provides an improved experience for our increasingly digital enabled customers. Downloads of our app are running ahead of our expectations with over 20,000 downloads to date.

Financial performance

I am pleased to report a resilient performance during the year, with Group sales up 3% to £34.7m. Profit on ordinary activities before exceptional costs and taxation up by 10% to £10.6m and, despite the 9% dilution caused by our share placing in March 2014, underlying earnings per share increased by 1% to 14.5p.

Dividend

The Board is pleased to recommend a 13% increase in the final dividend to 1.325p per share (2013: 1.175p) taking the total for the year to 2.0p per share (2013: 1.85p) which is an 8% increase.

The Board will continue to set dividend policy with regards to the investment opportunities available and the expected return on investment. The view of the Board remains that for now the majority of cash generated from the business should be retained to realise the considerable future growth opportunities.

People

Our success depends on the enthusiasm, hard work and professionalism of our staff and I would like to thank them all for their enormous contribution. Their relentless drive to deliver results across all levels of the business is what will continue to make Goals top of the league.

Keith Edelman

Chairman

10 March 2015

Managing Director's Review

The strategies pursued through our Path to Success initiative have put in place the infrastructure and funding, enabling the business to realise the growth opportunities from existing and future centres in both the UK and US.

UK Opportunity

Football remains as popular as ever. The January 2015 Sport England Active People Survey shows the number of people playing football in England has risen to nearly one in five adults - 8.2 million people. 5-a-side football continues to grow in popularity with now almost twice as many regular players as 11-a-side football*. The game is now fully recognised and supported by The Football Association (FA) and all Goals centres in England are FA accredited.

Goals is well placed to take advantage of the opportunity that still exists in the UK. With limited competitor activity, no new market entrants and on-going high barriers to entry.

Our proven modular build concept used at Chester and Manchester has reduced both capital expenditure and build time by 35% and will now be used in all future developments including Doncaster, which is under construction.

*Source: The FA tracker, September 2013

US Opportunity

Soccer is now one of the most popular team sports in the US with over 13 million participants; 6.2 million of which participate frequently. For 12 to 24 year olds, professional soccer now ranks as their 2nd favourite sport, behind only the NFL, and is the favourite sport for Hispanics, well ahead of traditional sports*. California is the largest soccer market in the US with approximately 2 million participants. Our first "pilot" centre which opened in 2010 in Los Angeles, is trading strongly and profitably and still continues to exhibit strong growth, proving the market demand exists whilst providing us with significant understanding and insight into the Los Angeles market. Our centre in Los Angeles is now one of our top performing centres on both a total sales and LfL basis.

As in the UK, we are working in 'partnership' with local authorities and schools to acquire well located sites within areas of high population density. The process of site acquisition and permissions is more complicated than in the UK due to the regulatory framework, however we believe the work we are putting in and the relationships and reputation we are building will further underpin our first mover advantage.

We are making excellent progress with our US pipeline, with detailed negotiations on 5 sites, headline terms agreed on 2 sites and legals commenced on our next site which we are hopeful of opening in 2015. We have a full outsourced development team engaged and are well advanced with our designs to provide a unique and exciting soccer brand for the California market. We are confident of delivering our facilities within our budgeted parameters.

*Luker On Trends for ESPN

Digital

Goals is committed to harnessing technology to secure competitive advantage. We believe that we have further extended our lead in this area with the launch of our mobile app, an industry first and a new mobile friendly website in December 2014. We anticipate that the compelling functionality of our new mobile app will improve the experience for Team Organisers and players and provide a strategic commercial advantage to Goals. Essentially, we are making 5-a-side more convenient for Team Organisers, existing players and more accessible to potential new players.

Team Organisers play a key role in our business. They book the pitch, organise their players and collect money from individual players to pay for the game. The role of Team Organiser can be frustrating; they can struggle for sufficient players, they can be let down by players calling off at the last minute and be left paying the difference when players cancel, don't turn up or have insufficient money. Often these frustrations can lead to a Team Organiser deciding not to continue and Goals losing recurring income from the whole team. Our innovative app provides the following functionality for Team Organisers:

• Team Management: the ability to invite, select and manage players within your own pool

• Direct Player Payment: invite selected players to pay their share of the game fee direct to Goals and monitor who has paid. This will remove the risk of the Team Organiser paying more than his share

• Player Blast: removes the frustration of last minute player cancellations through the ability to seek a replacement player from your own squad, your FaceBook friends or your local Goals centre database of players who are 'Up For A Game'.

The app also provides additional functionality that should appeal to existing and would-be players:

• Book a Pitch: the ability to book your pitch anytime, anywhere

• League Fixtures & Results: our popular league service now on mobile

In addition, The FA has identified a significant market of players who want to play football but are not part of a team. Our 'Up For A Game' functionality allows individual players to register their details and availability after which they can be selected via the Player Blast function by Team Organisers or groups of similar players brought together by Goals to form new teams. Since launch in December, almost 1,000 Player Blasts have been sent with a 90% acceptance rate enabling 'at risk' games to go ahead.

Whilst it is too early to evaluate the app's success, we recognize that it will take time to build a substantial following and to change customer behaviour, we are encouraged by the initial results. To date we have achieved over 20,000 downloads, which is ahead of plan and 6% of our games are being organized through the app. We expect to see these numbers increase as Team Organisers and players become more aware of the benefits of using the full functionality of the app and our initiatives continue to increase awareness.

Our new mobile friendly website provides content flexibility by branch and by season. The website's adaptive design aims to take advantage of the high growth in tablet and smartphones amongst our target market. Since launching in December 2014 visits to our website accessed via a mobile device have grown to almost 70%.

** Source: Goals Player Survey, September 2013

Marketing

Our marketing strategy is aimed at getting more people playing football more often and to differentiate the "Goals" product offering. Our benchmark is that one additional game per branch, per day can add £0.8m to Company EBITDA.

With that in mind we pursued a diverse range of marketing activities aimed at retaining and increasing the frequency of play of our existing customers, as well as attracting new players to Goals through exciting headline activities.

2014 saw a refresh of the Goals brand with a subtly modified Goals logo and new colour palette. This brand change has now been rolled out across the business and is evident on the new Goals website and app.

Football is a social network. The importance of social media to our target market is key. The growth in social platforms such as FaceBook, Twitter and Instagram provides an exciting new route by which to engage with our existing and potential customers using timely and media rich messaging. During the year we appointed a Social Media Manager to work alongside our E-Commerce & Marketing Manager in order to increase our focus in this area. We are experiencing an increasing number of enquiries from social media as we continue to work on engaging with potential customers in this important digital area.

With fitness being the biggest driver of football participation, we again kicked-off the year with a major marketing push, with our 'Play5s-GetFit' campaign which promoted the health and fitness benefits of playing 5-a-side football. Marketed heavily on TalkSport radio, we supplemented the benefits of playing 5-a-side with activities in-branch including team 'weigh-ins' and fitness boot-camps.

We have continued to attract a number of headline national events including the annual Powerade Fives, Kia Cup, The Warrior Fives, Skins Cup as well as retaining our status as Official Partner of Movember. Our events offer the most exciting prizes in the 5-a-side sector with teams winning the opportunity to attend the World Cup in Brazil. In addition we continue to hold national tournaments for major corporate clients such as McDonalds, JD Wetherspoon and Odeon. In spite of this success, as anticipated, like-for-like corporate event and sponsorship sales decreased by 11% in the year due to the loss of a significant one-off activity in 2013 although like-for-like sales grew by 9% excluding the impact of this one off activity.

In the autumn we launched our post summer 'September Uplift' campaign to encourage players who had taken a break over the summer holiday period to get back into the game. Promoted heavily through social media and direct marketing, players were welcomed back to Goals with a Festival of Football and offers promoted through support by The FA.

In addition to our successful national campaigns, appealing to the local market is key to our business success and we have focused on making sure each management team is provided with the training and tools to actively promote their centre within the local community. This requires interaction with local business and media, targeted local promotions and working with local County Football Associations and Leagues to encourage 11-a-side teams to use our facilities for training.

More and more of our promotions are targeted to individual customers or small segments via email, web and social media which make them more efficient and measurable and the user data that will be provided by our new app will allow us to target tailored marketing to individuals based on their playing characteristics.

Last year we played host to over 500 teams as part of the FA Reds v Blues tournament, a celebration of the centenary of The FA. February 2015 saw the launch of The FA Peoples Cup with almost 4000 teams taking part in various venues across England. Organised by The FA and promoted heavily through BBC television, radio and digital channels, Goals played host to almost 1700 of these teams.

A major Kids Party promotion through digital channels has delivered a 65% increase in bookings since the start of the current year. This is on top of what was a strong year in 2014 and is a result of our product improvement, enhanced training and focused targeting of digital media.

Operational Excellence

Our Operational Excellence strategy, implemented as part of our 'Path to Success' initiative has delivered significant change and improvement in the business. Our 'One Best Way' operations process provides the foundation of induction training and ongoing staff development leading to consistency and delivery of best practice across all operational areas. This has been particularly evident in our large national league program requiring professional delivery to ensure a quality football experience.

Listen & Learn

Goals is a people focused business and our obsession with customer service and providing the ultimate football experience is at the heart of everything we do. We strive to offer a consistently high quality experience.

Through automated player feedback surveys and regular focus groups, our 'Listen and Learn' customer insight programme informs change and innovation at all levels of the business. This enables us to help retain existing customers and attract new ones through the delivery of a great user experience.

Product Innovation

"5-a-side is now a whole new ball game!" was the headline slogan when Goals launched in December 2000 reflecting our commitment to innovation. We set out to deliver a new and exciting 5-a-side brand and that focus on innovation remains a key theme in our business philosophy.

We continue to search for growth opportunities and new ways to improve the customer experience. We believe that great service, constant innovation and a continued investment in our product is the winning formula for building a stronger brand which can consistently deliver the best returns in the industry.

All new centres and resurfaced pitches will now feature Goals 'Stadium Turf', artificial turf striped with two shades of green reflecting the pitch perfect conditions of the newly rolled pitch before a big stadium game. Feedback from our players has been enthusiastic with many sharing photographs of our new pitches across social media.

Our Goals-Cam technology is now being rolled out across the business and will soon be live on our new website. This technology records game highlights from two different angles and makes the resulting 20 second highlights clips available to players for download or for sharing across social media. Our pilot installations have proven successful, further enhancing the player experience whilst creating a new way in which to spread the Goals brand across social media.

We have successfully tested and are now rolling out our new 'Soccer Blast' product, a Kids Party experience aimed at older children and youths. Initial trials indicate that this should be a popular additional to the Goals product line up.

A number of new and exciting customer initiatives are in development as we encourage a culture of innovation across the business rewarding good ideas from staff through our 'Bright Ideas' awards. Exciting new products create news and interest, giving current players a reason to play more often, lapsed users a reason to return and new customers a reason to try us, all of which drives profitable game growth.

Team

The passion and professionalism of our staff are fundamental to delivering a quality football experience to our customers helping to build retention.

We strive to recruit the best people and invest in their training and development. Our staff embrace our 'heart and soul of football' ethos, creating a professional yet welcoming club-like atmosphere for our players. Our Future Leaders graduate programme helps attract 'high potential' talent into the business and is designed to accelerate understanding of how key team members can contribute to future success. Goals is an exciting place to work with plenty of opportunities and we are proud of our ability to develop people and build exciting and diverse careers.

We have continued to strengthen our Head Office and support team with the recent appointments of a Social Media Manager and Corporate Sales Manager.

We have a strong culture of recognition and celebrating success, which helps create an environment in which people see that their work is valued and are inspired to achieve. Our industry leading 'Golden Goals' staff rewards programme, works by using re-loadable, pre-paid cards for all reward payments that can then be used in a large number of high street and online stores.

The people who work for Goals really are important to our success. We have the strongest team in our sector and once again, I'd like to thank them all on behalf of the Board for their dedication, enthusiasm and professionalism during the year.

Keith Rogers

Managing Director

10 March 2015

Finance Director's Review

I am pleased to report a year of progress with profit growth, debt reduction and further targeted investment in our central infrastructure to support the enlarged scale of the business.

The Goals Group

Group sales increased by 3% to £34.7m (2013: £33.7m) and Group like-for-like sales increased by 2%.

Group EBITDA, before exceptional costs, from our centres increased by 2% to £17.8m (2013: £17.4m).

Our Head Office costs increased by 13% to £3.0m (2013: £2.6m) as we continued to invest to support the enlarged scale of the business. Despite this investment Group EBITDA, before exceptional costs, was flat at £14.8m.

Group Operating Profit, before exceptional costs, increased by 1% to £11.9m (2013: £11.8m) and the Group Operating Profit margin declined marginally to 34% (2013: 35%).

In March 2014 the Group raised £11m by way of a placing and thereafter renewed its banking facilities on improved terms. This resulted in a significant reduction in financial expenses to £1.3m (2013: £2.2m) and reduced ongoing financial expenses.

EBITDA bank interest cover was 11.2 times during the 12 months ended 31 December 2014 (2013: 7.3 times). Net debt at 31 December 2014 stood at £36.9m (2013: £46.4m) and current leverage of net debt to EBITDA is 2.5 times (2013: 3.1 times) improving funding capacity.

Underlying Profit Before Income Tax increased by 10% to £10.6m (2013: £9.6m) for the year.

The tax charge for the period is at an effective rate of 21.2% (2013: 12.9%). The effective rate in 2013 was low due to the reduction in the UK corporation tax rate reducing our deferred tax liability and, as anticipated, the effective rate increased during 2014 to be in line with the UK corporation tax rate.

Despite the 9% dilution caused by our share placing in March 2014 Underlying Earnings Per Share increased by 1% to 14.5p (2013: 14.4p). Underlying Earning Per Share in 2013 have been adjusted to reflect a constant effective tax rate of 21.2%.

The Group has a strong balance sheet with net assets of £80m (2013: £63.1m) and has a long term non-amortising bank facility with Bank of Scotland of £42.5m which expires in July 2019. This facility supports the controlled roll-out of new centres in the UK and the US and provides a significant funding contingency.

The Board continues to focus on strong cash generation and enhancing return on capital from immature centres. Net cash generated from operations, before exceptional items, increased by 19% to £13.0m (2013: £10.9m). The Group invested £6.4m in capital expenditure (2013: £4.3m) during the period. £4.5m (2013: £0.4m) was incurred on our new centres, £0.2m on information technology, and £1.7m on upgrading our mature centres. The Group invested £1.7m on software development and call centre systems during the period.

Our UK Business

Sales in the UK centres increased by 2% to £33.6m (2013: £32.7m) and like-for-like sales increased by 2%. Like-for-like sales in our key product areas were:

· Football increased by 1% (82% of total sales)

· Bar and Vending increased by 5% (16% of total sales)

· Other decreased by 9% (2% of total sales)

Like-for-like football sales, which accounts for 82% of all sales, increased by 1%. As anticipated a one-off activity of £0.3m with a large corporate customer in 2013 did not recur in 2014 otherwise like-for-like football sales would have been 2%. In addition, the Company took the strategic decision to delay the usual post summer price increase until January due to the launch of the app.

Like-for-like bar and vending sales increased by 5% as increased football volumes and the general recovery in the economy increased our midweek bar sales.

Our overall gross profit margin decreased from 90% to 89% due to the success of lower margin bar and birthday party sales. Our bar gross margin increased marginally from 59% to 60%.

A strong focus on overhead costs was maintained throughout the year. A new HR and Payroll system with an integrated Time and Attendance system was implemented. This combined with other efficiency measures restricted the increase in our average overheads per centre to 1% (2014: £295,000; 2013: £293,000). We expect these overheads to increase by approximately 4% in 2015 due to increases in business rates.

Our Centre EBITDA increased by 2% to £17.2m (2013: £17.0m) and our average Centre EBITDA increased marginally to £396,000 (2013: £395,000). Our Centre EBITDA margin reduced from 52% to 51% due to the growth of our lower margin bar and birthday party sales.

The investment in resources within our Head Office has continued to increase to support the enlarged scale of the business. This has resulted in a planned increase of 13% in our UK Head Office costs to £2.9m (2013: £2.6m).

As a result of the planned increase in UK Head Office costs the EBITDA generated by Goals UK declined marginally to £14.3m (2013: £14.4m).

Our US Business

Goals US performed well during the period with sales increasing by 13% to $1.7m (2013: $1.5m) and Centre EBITDA increasing by 19% to $0.8m (2013: $0.7m). There was an adverse movement in exchange rates and, when converted into UK pounds, sales increased by 10% to £1.1m (2013: £1m) and Centre EBITDA increased by 19% to £0.6m (2013: £0.5m).

The costs of operating the US Head Office remained flat at £0.1m.

Our centre in Los Angeles is now well established in the soccer market in California and we anticipate further growth from this location. This strong growth confirms that the Goals concept is successful outside of the United Kingdom providing confidence for our future US roll out.

Exceptional Cost

The Group incurred the following exceptional costs during the period:

• £2.7m - cost of exiting the Group's interest rate swap

• £0.5m - expensing of bank arrangement fee on existing bank facility

• £0.6m - debtors provided against due to introduction of new app

The Group has replaced its existing banking arrangements with a long term non-amortising loan facility of £42.5m on much improved and competitive terms.

Bank arrangement fees of £0.5m on the existing facilities have been expensed as an exceptional cost in the period. To facilitate this restructuring and, as indicated at the time of the placing, the Board has repaid the liability of the Group's interest rate swap at a cost of £2.7m.

We believe our innovative app, which is now complete, will generate increased sales for the Group by removing the three main issues experienced by Team Organisers which are late player cancellations, insufficient players and non-payment by players. There are a significant number of lapsed teams who do not play due to the Team Organiser incurring a personal debt as a result of being let down by individual players. Our new app deals effectively with these issues and will provide the confidence and security for lapsed Team Organisers to once again return to organising regular play.

With the app now providing a comprehensive solution the Board has decided to maximise the uptake of the app, thereby improving the Group's long term revenue opportunities, by re-engaging with lapsed Team Organisers. This is expected to result in the Group not fully recovering its existing debts and the Board has made a provision of £0.6m of which £0.3m had been used at the year end. In light of the one off nature of this matter, as well as its financial significance on the result for the period, the provision has been disclosed separately within operating costs as an exceptional item.

Dividend

The Directors intend that the Company will continue to retain the majority of distributable profits and cash flow to invest in value creating opportunities. Following the results achieved for the year, the Board is recommending that a final dividend of 1.325p per share be paid on 5 June 2015 to shareholders on the register on 15 May 2015 at a cost of £775,000, making 2.0p net for the full year (2013: 1.85p). The full year dividend is covered 7.2 times by profits before exceptional items and after tax (2013: 8.6 times).

Current Trading

Sales for the first eight weeks of the year have been flat. This is as a result of adverse weather this year and mild weather last year which drove 6% sales growth. Sales have strengthened in the past three weeks as the weather has improved.

As a result of on-going initiatives including the launch of our new app and website, the strength of our core business, the expansion opportunity in the US and the improving economic backdrop we are confident of making further progress during this year and beyond.

William Gow

Finance Director

10 March 2015

Consolidated income statement

for the year ended 31 December 2014

Statement of comprehensive income

for the year ended 31 December 2014

Balance sheets

at 31 December 2014

These financial statements were approved by the board of directors on 10 March 2015 and were signed on its behalf by:

Company registered number: SC202545

Statements of cash flow

for the year ended 31 December 2014

Statements of changes in equity

for the year ended 31 December 2014

Statements of changes in equity (continued)

for the year ended 31 December 2014

Notes

(forming part of the financial statements)

1 Accounting policies

Goals Soccer Centres plc (the "Company") is a company domiciled in the United Kingdom. The consolidated financial statements for the year ended 31 December 2014 comprise those of the company and its subsidiaries (together referred to as the Group). The parent company's financial statements present information about the company as a separate entity and not about the Group. Under section 408 of the Companies Act 2006 the company is exempt from the requirement to present its own income statement and related notes.

Statement of compliance

Both the parent company financial statements and Group financial statements have been prepared and approved by the directors in accordance with International Financial Reporting Standards as adopted by the EU ("adopted IFRSs") that are effective (or available for early adoption) at 31 December 2014. Based on these adopted IFRSs, the directors have applied the accounting policies, as set out below.

The financial statements for the year ended 31 December 2014 were approved by the board of directors on 10 March 2015.

Basis of preparation

The financial statements are prepared on the historical cost basis except for derivative financial instruments which are stated at their fair value. The preparation of the financial statements requires the directors to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

These financial statements of the Group and Company are presented in pounds sterling. All financial information has been rounded to the nearest thousand.

The accounting policies have been applied consistently to all periods presented, except for the adoption of the standards described below which have had no impact on the reported numbers but may affect the accounting for future transactions and events.

IFRS 10, Consolidated financial statements (effective 1 January 2014), IFRS 11, Joint arrangements (effective 1 January 2014) and IFRS 12: Disclosure of interests in other entities (effective 1 January 2014).

The Group has adopted all of the above listed standards and revisions in the current period. As there are no joint arrangements or associates within the Group, and with one exception all subsidiaries are under 100% ownership, there has been no impact on the results and balances within the consolidated financial statements.

Going concern

The Group and Company meet their overall funding requirements through their facility arrangements. The directors have reviewed the Group and Company's forecasts and projections which indicate that, notwithstanding the Group and Company's net current liabilities position, the Group and Company is expected to be able to operate within their current facilities for the foreseeable future.

After making enquiries, the directors have a reasonable expectation that the Group and Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly they continue to adopt the going concern basis in preparing the financial statements.

2 Segmental reporting

IFRS 8 'Operating Segments' requires a "management approach" under which segment information is presented on the same basis as that used for internal reporting purposes to the Chief Operating Decision Maker, which is the Board. For internal reporting purposes information is reported by soccer centre. As each soccer centre has similar economic characteristics, provides the same services to similar customers and operates in a similar manner they are aggregated into one segment. The directors, therefore, consider that there is one reporting segment relating to the operation of outdoor soccer centres.

Geographical information

In presenting information on the basis of geography, segment revenue is based on the geographical location of customers and segment assets are based on the geographical location of the assets.

The non-current assets represent property, plant and equipment and intangible assets.

3 Operating profit/(loss)

Earnings before interest, tax, depreciation and amortisation ("EBITDA") is calculated as follows:

Contained within operating expenses are the following main costs associated with the sites:

4 Exceptional items

There were no exceptional items in the year ended 31 December 2013.

5 Financial expense

Borrowing costs of £nil (2013: £139,000) have been capitalised in the year applying a rate of interest based on the Group's borrowing cost. In 2013 this rate was 6.2%.

6 Taxation

Reconciliation of effective tax rate

Income tax recognised directly in equity

Reductions in the UK corporation tax rate from 26% to 24% (effective from 1 April 2012) and to 23% (effective 1 April 2013) were substantively enacted on 26 March 2012 and 3 July 2012 respectively. Further reductions to 21% (effective from 1 April 2014) and 20% (effective from 1 April 2015) were substantively enacted on 2 July 2013. This will reduce the company's future current tax charge accordingly. The deferred tax liability at 31 December 2014 has been calculated based on the rate of 20% substantively enacted at the balance sheet date.

7 Dividends

A final dividend of £775,000 (1.325p per ordinary share) has been declared and will be paid on 5 June 2015 to shareholders on the register on 15 May 2015 (2013: Final dividend £687,000 (1.175p per ordinary share)). This has not been included as a liability as it was not approved or declared before the year end.

8 Earnings per share

Basic earnings per ordinary share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the year which was 57,289,241 (2013: 52,252,873). Following the placing in March 2014 the number of shares in issue increased to 58,465,060 (2013: 52,792,678).

Diluted earnings per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares in issue during the year plus the dilutive element of all outstanding relevant share options outstanding during the year. For the year ended 31 December 2014 this was 57,463,181 (2013: 52,755,845).

* Adjusted diluted earnings per share reflects the pre-exceptional cost effective tax charge for 2014 of 21.3% (2013: actual 12.9%) resulting in an adjustment to post tax earnings of £809,000.

The diluted weighted average number of shares is calculated as follows: