25 Jul 2017 07:00
Goals Soccer Centres plc
("Goals" or the "Company")
Post close trading update
Goals Soccer Centres plc, a leading operator of outdoor small-sided soccer centres with 48 sites, including two in California, North America, today reports on its trading for the first half of the financial year ending 31 December 2017 in advance of the release of the Company's interim results on 12 September 2017.
Highlights
· Agreed a contract to form a 50:50 Joint Venture with City Football Group ("CFG")1 to expand the Goals brand in North America.
- Goals will contribute its current North American assets and operating business into the Joint Venture and chair its Board;
- CFG will invest $16million and grant a licence to use its brands2 in the Joint Venture;
· Group sales for the period increased by 2% (H1 2016: -0.5%) to £17.3m (2016: £17.0m)
· Like-for-like sales for the period increased by 1.4% (H1 2016: -1.9%);
· Continued to make good progress in growing and innovating the UK estate;
- 223 of our arenas have been have been fully reinvested. A further 25 are planned for H2;
- The first "Clubhouse 2020" opened at Ruislip in April and Beckenham and Glasgow South have also been completed. Initial trading and analysis is encouraging.
- Wembley and Leeds will be completed by the end of August;
- The further rollout of Clubhouse 2020 will recommence following a full evaluation of the investment returns from the initial 5 clubs;
· US operations have been successfully restructured with a lower cost base; our second club Pomona launched in Q1 and our third club is under construction and scheduled to open at the year end;
· The strategic decisions taken by the Board to accelerate the recovery will result in the full year outturn being around £0.8m less than expected (£0.2m as a direct result of the Joint Venture with CFG)
· Preliminary discussions with Powerleague have currently been concluded.
Nick Basing, Chairman said:
"With the necessary overdue investment being made in our UK estate and a refocus on our consumer proposition, I am pleased to see some early signs of top line momentum. However, the UK consumer economic environment remains uncertain in the medium-term outlook.
I am delighted we have concluded our new partnership with City Football Group which will transform the prospects to expand our North American estate."
Mark Jones, Chief Executive said:
"We continue to make progress re-investing in the business to offer our customers a premium product. We are a substantial way through the programme to upgrade the pitches and have now embarked on phase two of giving customers an enhanced clubhouse experience in which they wish to spend time.
The Company is totally focussed on delivering attractive returns for shareholders from its assets and the opportunities in the UK and USA."
25 July 2017
Enquiries:
Goals Soccer Centres plc Mark Jones, Chief Executive Officer Bill Gow, Chief Financial Officer | 01355 234 800 |
Canaccord Genuity Limited (Nominated Adviser and Broker) Bruce Garrow Chris Connors Richard Andrews | 020 7523 8350 |
Instinctif Partners Matthew Smallwood Guy Scarborough | 020 7457 2020 |