July 19 – Goals Soccer Centres has warned that the impact of extreme weather in the UK in first quarter of 2018 will leave full year financial results “materially below market expectations”.
The operator of outdoor small-sided soccer centres that 49 sites, including three in California in the US, nevertheless maintained that the figures do not reflect the positive underlying trends in the business. The company is continuing with its £3 million modernisation programme in the UK.
“The investment strategy that is being executed is improving the underlying performance of the clubs. However, frustratingly, the first half was impacted by the snow and its significant after-effects, which masks the performance of the business where positive trends are clear. With the improving underlying performance, we expect a better second half,” said chief executive officer Andy Anson.
The bad weather of the first quarter in the UK impacted second quarter trading due to amateur 11-a-side games being pushed back into Q2 when players would normally have switched to playing 5-a-side. This left half year sales revenue 3% down on the comparable 2017 year, at £16.1 million.
The company reported that 260 of its 460 arenas now fully modernised and that they “continue to deliver good returns at clubs where five or more arenas have been upgraded. The planned investment of £3m in upgrading a further 78 arenas is underway and will be complete by the autumn. This will increase the number of arenas modernised to 338 (73% of our estate) and 39 of our 46 clubs in the UK will have 5 or more upgraded arenas.”
Expansion into the US (a joint venture with Manchester City owners City Football Group) is more gentle, but company reported that its “South Gate club is performing well. Pomona and Rancho, which opened in January, are progressing and showing growth. A fourth club at Covina, Los Angeles is now under construction and work is expected to be completed by the end of 2018.”
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