GOAL.L Regulatory News (GOAL)

9 Sep 2005 07:01

Goals Soccer Centres PLC09 September 2005 Goals Soccer Centres Plc Unaudited Interim Results for the six months ended 30 June 2005 Goals Soccer Centres plc ("Goals" or the "Company") is the premier operator of"next generation" 5-a-side soccer centres across the UK, currently operating 14centres. Today, it announces its first interim results since listing on AIM inDecember 2004. KEY POINTS Financial • Sales up 37% to £5.5m (2004: £4.0m) • EBITDA up 46% to £2.2m (2004: £1.5m) • EBITA up 60% to £1.8m (2004: £1.1m) • Profit on ordinary activities before tax up 473% to £1.3m (2004: £0.2m) • Earnings Per Share up 200% to 2.1p (2004: 0.7p) • Strong financial performance driven by like for like sales growth of 10% and the opening of three new centres • Current financial structure will fully fund the Company's rollout programme Rollout • Three new centres opened during the half year at Black Country, Teesside and Heathrow • Three additional centres under construction at Sheffield, Beckenham and Sutton scheduled for opening during the second half, meeting plans for six new sites in 2005 • The Board is very confident of reaching a minimum of 26 centres open and trading by the end of 2007 and a further 5 centres opening in 2008. Keith Rogers, Managing Director of Goals said: "Significant progress has been made with our rollout of "next generation"5-a-side soccer centres. Three new centres were opened during the period, threeare under construction and already a further four are scheduled to open during2006. Our focus on premier facilities in high population areas continues to delivergrowing and sustainable returns for shareholders. Our advanced site pipelinewill allow us to continue to grow our portfolio in a measured and controlledway. The Company continues to trade strongly in the second half of the financialyear" 9 September 2005 Enquiries: Goals Soccer Centres plc Today: 020 7457 2020 Keith Rogers, Managing Director Thereafter: 01698 286 633Bill Gow, Finance Director College Hill Tel: 020 7457 2020Matthew Smallwood/Jamie Ramsay Chairman's statement I am pleased to report Goals Soccer Centres' results for the six months ended 30June 2005. This has been another strong period. Sales increased by 37% to £5.5m (2004:£4.0m). EBITDA increased by 46% to £2.2m (2004: £1.5m), and EBITA increased by60% to £1.8m (2004: £1.1m). This resulted in a 473% increase in profit onordinary activities to £1.3m (2004: £0.2m) and a trebling in Earnings Per Shareto 2.1p (2004: 0.7p). This strong performance is further evidence of the Company's proven "nextgeneration" concept and the high level of pitch utilisation achieved throughinnovative marketing and advanced management systems. The Directors believe thatGoals is well placed to increase revenues not only from developing its pipelineof new sites but also from its existing centres. Our focus on customer retention and maximising pitch utilisation has reapedreward. I am pleased to report like-for-like sales growth of approximately 10%for the period. Interest costs were halved from £0.8m in 2004 to £0.4m this half year due to thefunds raised from the placing of shares when the Company listed on AIM inDecember 2004. Cash inflow from operating activities amounted to £2.4m. £4.0m was invested ascapital expenditure during the period, £3.8m of which relates to investment innew centres. At 30 June 2005, approximately £1.5m had been invested in ourpipeline of sites. Debt at 30 June 2005 was £12.3m (31 December 2004: £10.0m). The Company has asix year revolving credit facility with HBoS of £22.5m which will fully fund ourplan for a further 17 centre openings over the next three and a half years. The Board intends that the Company will retain the majority of any distributableprofits and cash flows to contribute towards funding its planned roll out of newcentres. However, the Directors propose to declare a small but progressivedividend each year for the foreseeable future, commencing with a final dividendfor the year ending 31 December 2005. Our strategy remains focused and straightforward: • to continue to innovate and lead the industry, • to accelerate our UK rollout of "next generation" soccer centres, • to maximise revenue from existing centres, • to continue to build a positive national 5-a-side brand and to develop marketing partnerships with known brand operators, • to continue to generate high returns on capital. We continue to make excellent progress in all of these areas. Operational Review Goals is the premier operator of 5-a-side football centres in the UK market. Our"next-generation" offering comprises the latest artificial pitch technology,high quality facilities and superior customer service. The popularity of 5-a-side football continues to increase. Football is the mostpopular sport in the UK and 5-a-side football as a commercial activity has grownrapidly in recent years. The Board considers that this trend will be maintainedin the future. We believe there is a major commercial opportunity to satisfysignificant potential and latent demand through the provision of quality"next-generation" facilities in unrivalled locations. The time taken from site identification to commencement of construction canoften exceed two years. Goals has over recent years developed a well progressedpipeline of sites and is on course to deliver its planned openings for 2005 andbeyond. The Board expects further significant progress in the second half of 2005, bothin terms of trading performance and the opening of three new centres currentlyunder construction. The Company has continued to trade strongly since the period end. We remainconfident in our business model and product. The Board is also continuing toexplore sponsorship opportunities. Goals is committed to youth sports development in the communities in which itoperates. By working in partnership with local authorities, schools and sportsdevelopment agencies, we seek to improve access for children to quality sportsfacilities. Our commitment to free access for key user groups during off-peakhours is a model of public private partnership. The skill and dedication of Goals' people in serving our customers is the realdriving force behind our success. I would like to thank all of them for theircontinued dedication and hard work. The interim report for the six months ended 30 June 2005 was approved by thedirectors on 9th September 2005. The interim report is unaudited but has beenreviewed by the auditors, KPMG Audit Plc. Sir Rodney WalkerChairman 9th September 2005 Unaudited Profit and loss accountfor the six months ended 30 June 2005 Note 6 months 6 months Year ended ended ended 30 June 30 June 31 December 2005 2004 2004 (unaudited) (unaudited) (audited) £000 £000 £000 Turnover 5,503 4,019 8,288Cost of sales (741) (554) (1,175) --------------------------------- Gross profit 4,762 3,465 7,113Administrative expenses- general (2,997) (2,366) (4,710)- goodwill amortisation (61) (61) (122) --------------------------------- Operating profit 1,704 1,038 2,281Other interest receivable and similar - - 2incomeInterest payable and similar charges (431) (816) (1,670) --------------------------------- Profit on ordinary activities before 1,273 222 613taxationTax on profit on ordinary activities (400) (85) (200) --------------------------------- Profit on ordinary activities after 873 137 413taxationDividends paid and proposed 3 - (43) (155) --------------------------------- Profit for the financial period 873 94 258 ================================= Earnings per ordinary share- Basic and diluted 2.1p 0.7p 1.9p There are no recognised gains and losses other than those set out above. Unaudited Balance sheetat 30 June 2005 Note 30 June 2005 30 June 2004 31 December 2004 (unaudited) (unaudited) (audited) £000 £000 £000 £000 £000 £000Fixed assetsIntangible assets - 1,908 2,032 1,970goodwillTangible assets 26,442 19,946 22,484 ---------------------------------------- 28,350 21,978 24,454Current assetsStocks 102 83 84Debtors 240 - 224Cash in hand 334 213 133 ----------------------------------------- 676 296 441Creditors: amounts 4 (2,470) (1,309) (1,854) -----------------------------------------falling due within oneyear Net current liabilities (1,794) (1,013) (1,413) ----------------------------------------- Total assets less 26,556 20,965 23,041current liabilities Creditors: amounts (12,476) (20,314) (9,834)falling due aftermore than one yearProvisions for (251) (135) (251)liabilities and charges ---------------------------------------- Net assets 13,829 516 12,956 ======================================== Capital and reservesCalled up share capital 104 10 104Share premium account 12,679 497 12,679Profit and loss account 1,046 9 173 ---------------------------------------- Equity shareholders' 13,829 516 12,956 ========================================funds Unaudited Cash flow statementfor the six months ended 30 June 2005 Note 6 months ended 6 months ended Year ended 30 June 2005 30 June 2004 31 December 2004 (unaudited) (unaudited) (audited) £000 £000 £000 £000 £000 £000 Cash inflow 5 2,364 1,552 3,023 from operating activities Returns on investments and servicing of finance Interest paid (405) (779) (1,790) Interest received - - 2 -------------------------------------------- received Net cash (405) (779) (1,788) outflow for returns on investments and servicing of finance Taxation - - - Capital expenditure Payments to (4,045) (1,871) (4,384) acquire property, plant and equipment Net cash (4,045) (1,871) (4,384) outflow for capital expenditure and financial investment Cash outflow (2,086) (1,098) (3,149) before financing Equity - (43) (155) dividends paid Financing Issue of share - - 13,250 capital Expenses paid (176) - (799) in connection with share issue Bank loans 3,055 1,525 10,505 received Bank loans - - (12,250) repaid Loan notes and (475) (425) (7,600) vendor loans ------------------------------------------- redeemed Net cash inflow 2,404 1,100 3,106 ------------------------------------------- from financing Increase / 318 (41) (198) (Decrease) in cash (Decrease) in =========================================== cash in the period Reconciliation of movements in shareholders' funds for the six months ended 30 June 2005 6 months ended 6 months ended Year ended 30 June 2005 30 June 2004 31 December 2004 (unaudited) (unaudited) (audited) £000 £000 £000Profit for the financial period 873 137 413Dividends - (43) (155) ------------------------------------ Retained profit 873 94 258New share capital subscribed (net of - - 12,276issue costs) Net addition to shareholders' funds 873 94 12,534Opening shareholders' funds 12,956 422 422 ---------------------------------- Closing shareholders' funds 13,829 516 12,956 ================================== Notes to the interim report 1 Basis of preparation The accounting policies applied to the unaudited interim results are consistentwith the accounting policies applied in the most recent set of financialstatements for the year ended 31 December 2004 The results for the year ended 30 June 2005 do not constitute statutory accountsas defined in Section 240 of the Companies Act 1985. The comparative informationfor the year ended 31 December 2004 is extracted from the statutory accountswhich have been delivered to the Registrar of Companies. The report from theauditors was unqualified and did not contain a statement under S237(2) or S237(3) of the Companies Act 1985. 2 Taxation The taxation charge has been included at the effective rate likely to be appliedfor the year ended 31 December 2005. 3 Dividends 6 months ended 6 months ended Year ended 30 June 2005 30 June 2004 31 December 2004 (unaudited) (unaudited) (audited) £000 £000 £000 Dividends paid - 43 155 The dividends during 2004 were paid to the holders of the ordinary "A" shares inaccordance with the previous Memorandum and Articles of Association. 4 Creditors amounts falling due within one year 30 June 2005 30 June 2004 31 December 2004 (unaudited) (unaudited) (audited) £000 £000 £000 Bank overdraft 290 332 407Trade creditors 752 307 879Corporation Tax 400 - -Other taxes and social security 94 73 73Other creditors 1 1 3Accruals and deferred income 933 596 492 -------------------------------- 2,470 1,309 1,854 ================================ 5 Net cash inflow from operating activities 6 months 6 months Year ended ended ended 30 June 2005 30 June 2004 31 December 2004 (unaudited) (unaudited) (audited) £000 £000 £000 Operating profit 1,704 1,038 2,281Depreciation 432 403 815Amortisation of goodwill 61 61 122Increase in stock (18) (21) (22)(Decrease)/Increase in debtors (16) 121 (70)Increase/(Decrease) in creditors 201 (50) (103) --------------------------------- Net cash inflow from operating 2,364 1,552 3,023activities ================================= 6 Reconciliation of net cash flow to movement in net debt 6 months 6 months Year ended ended ended 30 June 2005 30 June 2004 31 December 2004 (unaudited) (unaudited) (audited) £000 £000 £000 Increase/(decrease) in cash in the 318 (41) (198)periodCash inflow from bank finance (3,055) (1,525) (10,505)Bank loans repaid - - 12,250Loan notes and vendor loans redeemed 475 425 7,600 -------------------------------- Change in net debt resulting from cash (2,262) (1,141) 9,147flowsNon cash movement - amortisation of (8) (24) 5 finance costs ------------------------------- Movement in net debt in the year (2,270) (1,165) 9,152Net debt at the start of the year (10,004) (19,156) (19,156) ---------------------------------- Net debt at the end of the year (12,274) (20,321) (10,004) ================================== 7 Movement in net debt At beginning Trading Non cash At end of of period cashflow movement period £000 £000 £000 £000 Cash at bank and in hand 133 201 - 334Overdraft (407) 117 - (290) ---------------------------------------- (274) 318 - 44 ======================================== Revolving credit facility (8,030) (3,055) - (11,085)Vendor loan (1,800) 475 (1,325)Unamortised finance issue costs 100 - (8) 92 ------------------------------------------- (10,004) (2,262) (8) (12,274) =========================================== 8 Earnings per share 6 months 6 months Year ended ended ended 30 June 2005 30 June 2004 31 December 2004 (unaudited) (unaudited) (audited) Profit for the financial period 873 137 413(£'000)Weighted average number of shares 41,883,788 20,000,000 21,497,945 Basic and diluted earnings per share 2.1p 0.7p 1.9p 9 Interim report A copy of the interim report will be posted to shareholders during September2005. Additional copies will be available via the Company's website,www.goalsplc.co.uk, or from the Company Secretary at the Company's registeredoffice 29 Bothwell Road, Hamilton ML3 0AY. KPMG Audit plc 191 West George Street Glasgow G2 2LJ United Kingdom Independent review report by KPMG Audit Plc to Goals Soccer Centres plc Introduction We have been engaged by the company to review the financial information set outon pages 4 to 9 and we have read the other information contained in the interimreport and considered whether it contains any apparent misstatements or materialinconsistencies with the financial information. This report is made solely to the company in accordance with the terms of ourengagement. Our review has been undertaken so that we might state to the companythose matters we are required to state to it in this report and for no otherpurpose. To the fullest extent permitted by law, we do not accept or assumeresponsibility to anyone other than the company for our review work, for thisreport, or for the conclusions we have reached. Directors' responsibilities The interim report, including the financial information contained therein, isthe responsibility of, and has been approved by, the directors. The directorsare responsible for preparing the interim report in accordance with the ListingRules which require that the accounting policies and presentation applied to theinterim figures should be consistent with those applied in preparing thepreceding annual accounts except where they are to be changed in the next annualaccounts in which case any changes, and the reasons for them, are to bedisclosed. Review work performed We conducted our review in accordance with guidance contained in Bulletin 1999/4: Review of interim financial information issued by the Auditing PracticesBoard for use in the United Kingdom. A review consists principally of makingenquiries of management and applying analytical procedures to the financialinformation and underlying financial data and, based thereon, assessing whetherthe accounting policies and presentation have been consistently applied unlessotherwise disclosed. A review is substantially less in scope than an auditperformed in accordance with Auditing Standards and therefore provides a lowerlevel of assurance than an audit. Accordingly we do not express an audit opinionon the financial information. Review conclusion On the basis of our review we are not aware of any material modifications thatshould be made to the financial information as presented for the six monthsended 30 June 2005 KPMG Audit Plc Chartered Accountants 191 West George Street Glasgow G2 2LJ 9th September 2005 This information is provided by RNS The company news service from the London Stock Exchange