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10 Jan 2012 07:00
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Goals Soccer Centres PLC
("Goals" or the "Company")
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Post Close Trading Update
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Goals Soccer Centres PLC, the UK's premier operator of next generation outdoor 5-a-side soccer centres with 42 centres in the UK and one in Los Angeles, USA, announces a trading update for the year ended 31 December 2011, in advance of the release of the Company's preliminary results on 28 February 2012.
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Trading for the year was in line with market expectations with overall sales increasing by 9% to Β£30.3m (2010: Β£27.8m). This has been driven by a resilient performance with like for like sales rising 1%. The impact of the contested VAT on block bookings by teams to fulfil their league fixtures has resulted in overall like for like sales being down 2%.
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The Company opened centres in Sunderland, Liverpool South, Norwich and Hull during 2011. Our first modular build centre in Chester will open in March 2012 within the target budget of Β£1.5m which compares favorably to our historic build cost per centre of Β£2.3m.
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In order to focus on strong cash generation and allow adequate time to evaluate all aspects of the new modular build the Board have decided to postpone further new centre openings in 2012. Subject to a satisfactory evaluation and prevailing economic conditions, we intend to return to opening more centres from 2013.
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The postponement of new centre openings in 2012 will also enable the Board to meet a key objective by using strong cash flow to further reduce net bank debt which, despite a normalised capital spend in 2011, has been reduced to Β£52.4m from Β£54.0m at 30 June 2011.
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The Company has also entered into a new four year banking agreement with Bank of Scotland totaling Β£56m comprising a revolving credit facility of Β£38 million, a term loan of Β£16 million and an overdraft facility of Β£2million. These facilities have been negotiated at competitive market rates and will provide the Company with the financial flexibility to meet our growth aspirations.
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Whilst 2011 was one of the most challenging years the consumer has faced, it looks likely that 2012 will continue in much the same vein. However, Goals operates in a resilient market place with a favourable price point and our market leading position provides us with the necessary scale to cope with the challenges ahead.
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10 January 2012
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Enquiries:
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Goals Soccer Centres plc | Today: 020 7457 2020 |
Keith Rogers, Managing Director | Thereafter: 01355 234 800 |
Bill Gow, Finance Director | |
Peel Hunt (Nominated Adviser and Broker) | Tel: 020 7418 8900 |
Dan Webster | |
Matthew Armitt | |
College Hill | Tel: 020 7457 2020 |
Matthew Smallwood | |
Jamie Ramsay |
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