17 Dec 2009 07:00
Goals Soccer Centres plc
Pre-Close Update
Goals Soccer Centres Plc ("Goals" or "the Company"), the premier operator of next generation five-a-side soccer centres in the UK announces a trading update for the year ending 31 December 2009 ahead of the release of its preliminary results on 1 March 2010.
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. The Company currently operates 33 centres across the UK and has a further four under construction, two of which are nearing completion.
The Board expects to report significantly increased sales and profits again for 2009. As indicated previously, we experienced unusually heavy snowfalls in February, and softer trading over the summer period. Trading has remained very resilient in our core business however we have been unable to recover this shortfall over the remainder of the year. This is expected to reduce profits by approximately £0.7m for 2009.
Sales for the year to date have increased by approximately 10% and like for like sales have been maintained. Excluding the impact of the snowfalls experienced in February 2009, like for like sales would have increased by 1% year on year, reflecting the recession resistant qualities of our core football business.
Like for like sales in our core football product, which represents approximately 75% of total sales, have been maintained and bar spend continued to grow steadily. As previously intimated, the economic downturn has impacted ancillary income and slowed the rate of initial growth of new centres. This has been particularly evident in corporate events which have borne the biggest impact. We believe the level of corporate business will benefit from the 2010 World Cup.
The Company has implemented a new Head Office Call Centre and strengthened its management team in anticipation of increasing its roll out of new centres from four to six each year, and to provide improved levels of customer service. Whilst leading to additional cost in 2009, this together with other initiatives will reduce our cost base by approximately £0.5m per annum thereafter.
Our rollout programme is on course with centres opened during the year at Coventry and Reading and a further two nearing completion in Liverpool and Eltham. Construction is also underway at Portsmouth and Gillette Corner in London and work will begin on a further two sites in the first quarter of 2010. Our pipeline of sites continues to strengthen and the Board remains confident that a minimum of six centres will be added during 2010. Goals development plans are fully funded and the Company currently has in excess of £10m of unutilised facilities.
Our joint venture in Los Angeles has secured its first site and construction is due to commence in early 2010. We fully expect to open this centre in time for the 2010 World Cup.
Our plans are advanced to maximise the opportunities that the 2010 World Cup presents for our industry. Therefore, despite the continuing unpredictable economic environment, we are confident of making further progress in 2010 and beyond.
17 December 2009
Enquiries:
| Goals Soccer Centres plc | Tel: 01355 234 800 |
| Keith Rogers, Managing Director Bill Gow, Finance Director | |
| KBC Peel Hunt (Nominated Advisor and Broker) | Tel: 020 7418 8900 |
| David Davies Dan Webster - broking | |
| College Hill | Tel: 020 7457 2020 |
| Matthew Smallwood Jamie Ramsay |