Blue5, on 02 August 2019 - 07:54 AM, said:
Goals Soccer Centres plc released the following statement to the City this morning. Highly unfortunate for their former non-executive chairman, Rodney Walker who was involved with the business from 2002 until July 2013. Many of you will remember Walker and his company, FBT.
RNS Number : 6528H
Goals Soccer Centres PLC
02 August 2019
Goals Soccer Centres PLC
("Goals" or the "Company")
Update
The Company regrets to announce that, following ongoing detailed investigatory work into the historic accounting policies and practices used by the Company in the recognition of revenue and the preparation of financial statements, it has become very recently evident that there has been improper behaviour within the Company. This has involved a number of individuals for a period since at least 2010. Due to these initial findings, there is material uncertainty in relation to the historic financial statements published by the Company. Work on the Company's full-year 2018 audit has therefore been suspended until further clarification on the historic financial statements has been obtained.
A key criteria for the resumption of trading in the ordinary shares of the Company is the completion and publication by 30 September 2019 of the full year 2018 audited financial statements. The Directors do not now believe this timeframe for the audit is achievable and, coupled with the findings above, no longer expect the ordinary shares in the Company to resume trading. The listing of the Company's ordinary shares on AIM is therefore expected to cease and cancellation will be effective from 30 September 2019.
The Company confirms that there have been no material developments in the ongoing dialogue with HMRC in establishing a timetable for resolving any misdeclaration of VAT and in establishing a final value of money owed.
Discussions with the debt providers remain positive and they have confirmed to the Company that the existing debt facilities will remain in place post the initial 31 July 2019 review date, albeit that one of its covenant thresholds has been exceeded.
Year-to-date sales across the 45 sites in the UK on a gross like-for-like basis are up +11.5%. The Company's US gross like-for-like sales are up +14.5%.
The Company will make further updates as appropriate and when more information is available.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.
A further update on Goals Soccer Centres plc which reads all too familiar:
https://www.thetimes...y-40m-x79qxpfsk
Goals Soccer Centres has admitted that its historic profit figures may have been overstated by up to £40 million after an investigation into its accounts.
The five-a-side football operator, which has been bought in a deal believed to be worth almost £27 million, has been in the stock market spotlight since March when its shares were suspended after an accounting inquiry by BDO. It was suggested that it owed £13 million in VAT.
Goals said today that its historic profit figures could have been overstated by up to £40 million. Details on the financial issues dating back to 2009 have been handed to the Serious Fraud Office.
Goals alleged that it had uncovered the apparent creation of false fixed assets, false revenues, fake invoices and the wrongful payment of cheques to individuals associated with the company.
Separately, Goals has previously said that it was conducting its own investigation into the actions of Keith Rogers, the former chief executive, and Bill Gow, the former finance director. Neither responded to requests for comment on the specific allegations made by Goals.
Mr Rogers, who now lives in the US developing football sites, has denied any wrongdoing, while Mr Gow, a director at the biscuit maker Thomas Tunnock, has not made any comment.
Goals runs 45 football sites in the UK and has a further four in a joint venture in the US.
Last month its shares were de-listed from the junior Aim market, where it floated in 2004, as it could not produce audited accounts for 2018. It was confirmed today that Goals had been placed in administration and was being purchased in a pre-pack deal.
Northwind 5s, a new company backed by Inflexion Private Equity and Soccerworld, a five-a-side football company, is taking over in a move which preserves about 750 jobs.
Soccerworld, which has five centres across Scotland and the north of England, is backed by the McDermott family, who were involved in founding Goals back in 1990.
In a statement, brothers Barry and Ian McDermott, who also have interests in golf and other leisure assets, said they hoped to be able to expand Goals across the UK and the US.
Mike Ashley’s Sports Direct International, the largest shareholder in Goals, appears likely to be wiped out by the administration, while the tax authorities may not receive any of the VAT owed. Goals said it would be unable to repay the full £30 million of debt it owes to Bank of Scotland, which is thought to be the secured creditor, from the proceeds of the sale.
Sports Direct had made an approach to buy the company for around £4 million in September and has been extremely critical of the Goals board.
Goals said: “It is with regret that the funds generated through the sale do not fully compensate even the lenders to the company.”
“The board has already taken steps to preserve the company’s legal rights to compensation from parties who might be liable through negligence or more direct involvement, and entered into standstill agreements with former directors and also with its auditors of 15 years, KPMG. It is very unlikely that shareholders of Goals will receive any value for their shares.”
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