Goals Soccer Centres plc Final Results for the year ended 31st December 2017

By in Marketing, People & Places

Tuesday 13th March 2018

Goals Soccer Centres plc (“Goals”, the “Company” or the “Group”) a leading operator of outdoor smallsided
soccer centres with 49 sites, including three in California, USA, announces its final results for the
period ended 31st December 2017.

Underlying performance
Statutory measures have been adjusted to reflect like-for-like ownership of Goals Soccer Centers Inc:
• Underlying Sales1 of £33.1m (2016: £33.0m)
• Underlying Like-for-like sales1 decline of 0.3% (2016: +0.5%). The closure of the clubhouses at Ruislip,
Beckenham, Glasgow South, Leeds and Wembley during refurbishment impacted like-for-like sales1 by
0.4%. Underlying Like-for-like sales1 adjusted for closures was +0.1%.
• Total System Sales1 of £33.8m (2016: £33.5m)
• Underlying EBITDA2 of £10.0m (2016: £11.2m) impacted by £1.1m of continued investment to support
our strategic initiatives and cost headwinds
• Underlying Profit Before Tax3 of £6.2m (2016: £7.7m)
• Underlying Diluted Earnings Per Share4 of 6.3p (2016: 9.7p)
• No final dividend is proposed
Strategic Highlights
Significant progress in 2017 in delivering our strategic plan:
• Investment and upgrading of the UK estate is delivering improvement and remains ongoing:
o 248 of our 460 arenas have now been fully modernised and are delivering good returns at
clubs where five or more arenas have been upgraded. Declines reduced at clubs with
between one and four upgraded arenas
o First five “Clubhouse 2020” pilot sites opened during the year with encouraging results
o Further UK investment to be financed from existing cash flow until indebtedness ratio reduces
• Continued expansion in the US:
o Entered a strategic 50:50, self-financing, Joint Venture (the “Joint Venture”) with City
Football Group (“CFG”), the global football group that owns Manchester City and New York
City Football Clubs amongst others, to rollout the Goals brand in North America:
▪ CFG has invested $16 million cash immediately and granted a licence to use its
brands in North America
▪ This will fully finance the planned rollout of the Goals brand in North America
o US trading continues to improve and the rollout of new clubs has been accelerated
▪ Second US club in Pomona, California was opened in February 2017
▪ Third US club in Rancho Cucamonga, California was opened in January 2018
▪ Construction of a fourth US club in Covina, California is expected to commence
during Q2 2018
• Andy Anson will join the Company as Chief Executive Officer with effect from 23 April 2018
2
Current Trading
For the 8 weeks to 24 February trading has been encouraging with like-for like sales up by 4.0%, benefitting
from the investments last year. In common with many businesses Goals was impacted by the challenging
weather conditions in weeks 9 and 10 and consequently like-for like sales for the first 10 weeks of our year
to 10 March were -3.0%. It is anticipated that with more normal weather patterns sales will revert to
positive territory.
Goals is a cash generative business and it is clear that where major investments have been made to more
than five arenas at a club positive sales trends follow. We will only utilise existing cash resources to make
further investments in the current year.
Michael Bolingbroke, Interim Chairman said:
“During 2017 we made significant progress towards achieving our strategic plan with investments in
the UK making an encouraging start and improving sales. There remains work to do to unlock the
potential inherent value within the UK estate and this will be the number one priority for the incoming
CEO. Together with CFG, our JV partner, we are pleased with the pace of growth in the US and we are
already California’s leading 5 and 7-a-side pitch operator.
We look forward to the arrival of Andy Anson as CEO in late April who will look to execute our existing
strategic plan whilst continuing to build on the strong foundations which have already been put in place.
We remain confident that we will deliver improved returns for Goals shareholders.”