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Goals Soccer

Goals Soccer Centres trading in line, rollout programme on track

Goals Soccer Centres PLC (AIM: GOAL) said it continues to trade in line with its expectations, despite the severe snow during early February 2009 which reduced sales and profits by approximately £300,000 in the six months ended June 30 2009.

In a trading update, the outdoor 5-a-side soccer centres in the UK said its rollout programme continues to plan with the Coventry centre added in the half year ended 30 June 2009, Liverpool and Reading under construction and the Portsmouth centre about to commence construction.

The company raised £11 million from existing shareholders in the first half to accelerate the opening programme and provide financial flexibility.

It said the pipeline of sites continues to strengthen and it remains confident that a minimum of six centres will be added during 2010, two of which, Eltham and Gillette Corner in London, will begin construction in the third quarter of 2009. The money from the placing together with internally generated cash and the existing five year committed bank facility will fully fund the rollout of at least six centres each year from 2010.

The company’s core football product has remained resilient. Bar spend is showing early signs of improvement following the decline in the second half of 2008. Other ancillary income - children's birthday parties and corporate events - continues to be slightly impacted by the downturn.

“Our new centres have continued to experience a slower rate of initial growth than in previous years resulting in maturity in both sales and profitability taking a few months longer to achieve,” the group said.
Several brokers issued notes in the wake of the trading statement, pleased with the progress the company is making and saying they remain buyers of the stock.

Brewin Dolphin said it remains a long-term supporter of the Goals story, maintaining its ‘Add’ stance and leaving its target price unchanged at 225 pence. “Having followed Goals closely since its IPO in 2004, we are of the firm belief that the management team has got the business model pretty well refined,” the broker said.

KBC Peel Hunt reiterated its ‘buy’ recommendation and 230 pence target price, as trading and openings are on course for its expectations, confirming the strength and potential of the company concept.
With the benefit of the £11 million placing, earnings growth should accelerate to 20 percent in 2010 from the 16 percent it is forecasting for the current year and “we expect further share price progress.”


Another buyer of the stock is Altium Securities which kept its 220p target, saying: “We feel this statement should provide confidence that Goals’ strategy remains on track. We are not changing forecasts or target price today.”

Joining in the chorus of praise, Numis Securities said Goals Soccer has delivered a pre-close update which is in line with Numis’ and market expectations. It is retaining its forecasts and its ‘buy’ stance and has put a 276p target on the stock.  “Goals Soccer is an attractive business with strong growth prospects,” Numis added.