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Goals Soccer Centres looking to score a merger with PowerLeague

Last updated: 09:30 24 Apr 2017 BST, First published: 07:55 24 Apr 2017 BST

Football game
Goals said it that it is just one of the “strategic opportunities currently being assessed” by the group

Five-a-side football pitches operator Goals Soccer Centres PLC (LON:GOAL) has confirmed press reports that it is in talks with its rival Powerleague but said it that it is just one of the “strategic opportunities currently being assessed” by the group.

Responding to a Sky News report yesterday which said the UK's two most prominent operators of five-a-side football pitches are examining a surprise merger, in a statement today Goals said  that at this stage in the discussions with Powerleague “no commercial or financial terms have been agreed and no decision on any course of action has been made by the Board.”

Goals added: “There is therefore no certainty that any transaction will proceed.”

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The group also said that, notwithstanding the current merger talks, it is still “highly focused" on delivering the strategic plan it unveiled in June 2016 which helped it return to like-for-like (LFL) sales growth in the second-half.

After the first half of 2016 saw Goals' LFL sales decline 2.0%, a second half comeback saw LFL sales growth of 2.9% from a year earlier, helping overall 2016 sales increase by 1.6% to £33.5mln, up from £33.9mln in 2015.

READ: Year of two halves for Goals

Underlying pre-tax profit eased to £7.8mln in 2016, down from £8.3mln in 2015, but was up 4.5% year-on-year in the second half of 2016.

A tie-up between Goals and Powerleague, which between them operate roughly 100 sites, would significantly increase their UK presence, as well as bringing under one corporate umbrella their venues in Ireland, the Netherlands and the US.

The Sky News report said, however, that it was unclear whether the pair's substantial combined presence in the UK would trigger any competition issues.

In early trading, Goals shares were over 6%, or 6.5p higher at 108.5p.

Analysts said the fact that a merger is even under consideration indicates the ambition of the new management team.

 -- Adds share price, analyst comment --

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