Goals Soccer Centre's 2017 profit to be 'broadly in line with lower end of expectations'
Source - SMW
Five-a-side operator Goals Soccer Centres delivered a mild profit warning as it updated on 2017 trading ahead of full year results on 13 March.
The company said profit for 2017 will be broadly in line with the lower end of market expectations after a like-for-like sales decline of 0.5%.
In the UK, the specific trading patterns outlined in the summer have broadly continued in H2: major Arena investment is delivering good sales growth in a large group of sites, whilst minor refurbishment has reduced the rate of sales decline.
Sites that have yet to receive investment have continued to perform poorly. Just over half of the estate has benefited from investment. Goals said that a further £3m of capital will be selectively targeted to further modernise the estate during 2018 to deliver the compelling proposition which customers clearly seek. The firm said that the joint Venture in North America with City Football Group, formed in July 2017, was performing and progressing well. Its third club in North America opened last week at Rancho Cucamonga in Los Angeles and Goals expects to commence construction of our fourth club during Q2 2018.
Further to an announcement in October chief executive Mark Jones is set to leave on 26 January. The search for a replacement is at an 'advanced stage' but in the meantime Bill Gow will stand in as interim CEO.
Nick Basing, Chairman commented: 'Our recovery plan remains "work in progress" with 2017 being a period of substantial investment in the UK and significant improvement achieved where major investments have been made. 'We are excited by the progress and the future of our strategic joint venture with City Football Group in North America. With our new developments in North America and further investment in our UK business, we are confident that we can deliver improved returns, over time, for Goals shareholders.'