14th Jan 2009 07:00
Goals Soccer Centres plc
Update
Goals Soccer Centres Plc ("Goals" or "the Company"), the premier operator of next generation outdoor 5-a-side soccer centres in the UK announces a trading update for the year ended 31 December 2008 ahead of the release of its preliminary results on 2 March 2009.
Small-sided football continues to grow in both stature and popularity and the Board believes that Goals is well placed to capitalise on this trend. Since January 2008 six centres have been added to the estate and the Company now operates 31 centres across the UK.
The year ended 31 December 2008 was another record year for the Company as it continued to significantly increase sales and profits driven by like for like sales growth and new centre openings. Our core football product has seen no diminution in demand and income from this main activity represents approximately 75% of total sales. However, ancillary spend has slowed during the last six months resulting in overall like for like sales increasing at a rate of +3% and total sales increasing at a rate of approximately 20% for the year to 31 December 2008. In recent months our new centres have experienced a slower rate of growth than in previous years resulting in maturity in both sales and profitability taking a few months longer to achieve. These factors have led to a marginal shortfall against market expectations in profit before tax for the year ended 31 December 2008.
Debt at 31 December 2008 stood at approximately £41.5 million, well within the £47.5 million committed facility at the Company's disposal until February 2013.
Mindful of the current economic climate the Board has decided to restrict the number of new centre openings in 2009 to four which will be financed mainly from the strong internal cash flow generated by the Company's operations. This cautious approach will be maintained until we have a clearer view of the financial and economic landscape. However the Company will continue to work on increasing its pipeline of over 40 sites and will accelerate the centre opening programme when the Board believes it is right to do so.
The Board is confident that this strategy will continue to deliver significant profit growth whilst maintaining a strong balance sheet.
14 January 2009
Enquiries:
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Goals Soccer Centres Plc |
01355 234 800 |
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Keith Rogers |
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Bill Gow |
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College Hill |
020 7457 2020 |
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Matthew Smallwood |
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Jamie Ramsay |
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KBC Peel Hunt |
020 7418 8900 |
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David Davies |
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Matt Goode |
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