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Goals Soccer Centres sees FY profit at lower end of market expectations
Five-a-side football group Goals Soccer Centres said on Monday that 2017 profits are likely to be broadly in line with the lower end of market expectations, as it reported a drop in full-year like-for-like sales.
In a trading update for the year to the end of December, the company said total sales rose 0.5% to £33.7m, while LFL sales were down 0.5%, versus a 0.5% increase the year before. Goals said the decline was exacerbated by the disruption caused by closures as it undertakes refurbishments.
Goals said major Arena investment is delivering good sales growth in a large group of sites, while minor refurbishment has reduced the rate of sales decline. Meanwhile, sites that have yet to receive investment have continued to perform poorly. A further £3m of capital will be selectively targeted to further modernise the estate during 2018 to deliver "the compelling proposition which customers clearly seek".
The company's joint venture in North America with City Football Group is performing and progressing well, while its third club in North America opened last week at Rancho Cucamonga in Los Angeles, with construction on the fourth club due to begin in the second quarter of this year.
Goals, which announced the departure of chief executive officer Mark Jones in October, said the search for a new CEO is at an advanced stage and Bill Gow will assume Jones' responsibilities in the interim.
Chairman Nick Basing said: "Our recovery plan remains 'work in progress' with 2017 being a period of substantial investment in the UK and significant improvement achieved where major investments have been made.
"We are excited by the progress and the future of our strategic joint venture with City Football Group in North America.
"With our new developments in North America and further investment in our UK business, we are confident that we can deliver improved returns, over time, for Goals shareholders."
At 1015 GMT, the shares were down 5.1% to 74p.