Goals Soccer tackles debt pile

Sep 28 2012

Five-a-side operator Goals Soccer Centres has tapped shareholders for £2.8 million to bolster its balance sheet in the wake of its recent failed takeover.

The East Kilbride-based group - whose shareholders last month voted against plans for a £73.1 million takeover by Ontario Teachers' Pension Plan - announced the share placing as it looks to reduce debts to below £40 million from the current £53.9 million before the end of 2014.

Fees relating to the failed takeover contributed to a £2.8 million hit to half-year profits from exceptional items, Goals said.

Half-year figures showed pre-tax profits were slashed to £1.6 million from £4 million a year earlier after costs including £1.3 million in professional fees for the takeover and a £2 million write-off on development costs.

But underlying profits rose 10% to £4.4 million thanks to an 11% rise in turnover. Like-for-like sales lifted 2% in the six months to June 30, which marked a slowdown on the 3% rise seen a year ago. Shares in Goals fell 5% following the fundraising, priced at 115p a share.

Simon French, analyst at Panmure Gordon, said: "Shareholders may feel a bit miffed at being asked to subscribe to the proposed placing at 115p per share having rejected a 144p per share bid just weeks ago."

Goals saw 71.4% of investors back the deal last month, below the 75% that was needed for it to be passed, which caused shares to plunge 20% in one day.

Ontario Teachers, which is one of the world's biggest pension funds and owns lottery operator Camelot, had won the support of the directors of East Kilbride-based Goals.

But investors were not convinced by Ontario Teachers' claims it was a "win-win" deal for shareholders. Ontario Teachers' is now prevented from bidding again for six months under City takeover rules.

Goals, which has 43 sites across the UK and one in Los Angeles, said trading since June had been boosted by recent marketing efforts, with "encouraging" like-for-like sales. While core football sales rose in the half-year, Goals said additional spending was lower as customers made cut backs. Bar and vending sales fell 1%, while spend on birthday parties fell 6% and by 8% for corporate events.