(Alliance News) - Shares in Goals Soccer Centres PLC were cancelled from trading in London on Monday as it continues to grapple with accounting errors related to value-added tax.
Goals Soccer Centres said it continues to work with the UK tax department, Her Majesty's Revenue & Customs, in establishing how much money it owes, having previously believed this to be GBP12 million.
Due to the identification of improper behaviour on the part of "a small number of individuals historically within the company", Goals Soccer Centres has been unable to conclude its work to date on clarifying the potential liability.
"Further, the actual liability may be materially higher than that previously announced dependent on the approach and working assumptions that could be adopted by HMRC in assessing the misdeclaration. Finalisation of the amount of the liability will ultimately require agreement with HMRC or determination by a competent tribunal," the company said, adding that there have been "no material developments" in its ongoing dialogue with HMRC.
Goals also said it continues to work on preparing audited 2018 financial statements, but no definitive timetable has been established due to the complexities surrounding the preparation of re-stated accounts.
"The key complexity revolves around the significant number and quantity of material correcting accounting entries required to enable full re-statement of the December 2016, 2017, & 2018 balance sheets," Goals Soccer Centres explained.
"As the company is not able to quantify with any certainty the impact of the misdeclaration of VAT on its financial position, or establish a firm timetable in which it will be able to quantify and agree the misdeclaration with HMRC, the company continues to expect the listing of the company's ordinary shares on AIM to cease, with a cancellation effective from 30 September," meaning Monday.
In due course, and if appropriate, directors will seek to establish an off-market trading facility which match trades between willing buyers and willing sellers, it said.
Sports Direct International PLC last week offered to buy all shares it does not own for 5.0 pence per share, an 81% discount to Goals Soccer's last closing price of 27.20p, before its shares were suspended. Sports Direct already holds a 19% stake in the firm.
The process of inviting offers for the business and assets of the firm will continues and will not be affected by the share cancellation, Goals Soccer Centres said.
Shares in FTSE 250-listed Sports Direct were up 0.1% at 275.11p in London on Monday.
By Lucy Heming; lucyheming@alliancenews.com
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