Goals warns over profits following accounting blunder
Goals Soccer Centres has warned that annual profits will be “materially below expectations” after the firm uncovered accounting errors as part of a business review.
The operator of five-a-side football pitches said that the board and its auditors were working to resolve certain accounting errors for the financial year ending December 31 2018.
In addition, they are reviewing some “accounting practices and policies”.
As a result, Goals expects 2018 full-year results will be materially below expectations and the reporting date of March 12 will be delayed.
KPMG was the group’s auditor until June 2018, when it was replaced with BDO.
The firm also said that while the “accounting adjustments” are of a non-cash nature, it means Goals is in breach of one of its banking covenants.
“We are in discussions with the bank with a view to agreeing re-negotiated facilities,” Goals said.
It represents the second blow in quick succession for the company.
Only in January did Goals warn that profits would be lower after a revamp of its offering resulted in higher costs.
It also bemoaned slower than anticipated growth in the US, where the company has four sites, as well as economic and political uncertainty.
However, Goals said its performance has been strong in the first two months of the year, with an increase in like-for-like sales, in both the UK and US.