Business

Five-a-side football firm Goals issues new profit warning

People playing five-a-side football Image copyright Getty Images

Five-a-side football firm Goals Soccer Centres has warned of poor results for both 2018 and 2019, as it continues to try to recover from major VAT errors.

It added that new accounting policies mean its 2019 results are set to be "materially" lower than expected and said it may not be able to complete its 2018 audit by the 30 June deadline.

Goals is still in talks with HMRC to try to resolve the issue.

Shares in the firm remain suspended until its 2018 accounts are published.

The East Kilbride-based company operates 50 outdoor football centres in the UK and California.

In a statement, it gave assurances that talks with lenders "remain positive" and added that current trading had continued to be strong in the UK and US.

In March, the company said that its VAT errors totalled £12m because of mistakes going back "several years".

Chief executive going

It had warned earlier in the month of a big blow to its 2018 profits after uncovering the accounting errors as part of a business review.

It delayed the publication of its full-year results, which had been due on 12 March, after issuing a profit warning in January.

In the middle of this month, Goals chief executive Andy Anson announced that he was going to leave the company to become the new chief executive of the British Olympic Association.

His departure date has not been confirmed, but he has agreed to stay on the company's board for the next six months to assist in resolving its accounting issues.

Sports Direct boss Mike Ashley, who is in talks to sell Newcastle United, owns more than 18% of Goals.

More on this story