Five-a-side pitch operator Goals Soccer Centres (GOAL) received a red card from investors after poor summer trading prompted a cut in profit guidance and a corresponding 21 per cent slump in the shares. Management believes tough comparators after last year's World Cup, poor UK weather and a pick-up in summer holidays were collectively to blame for the "significant increase in both league and casual teams cancelling" over the period.
Management now expects pre-tax profit for the year of £9.3m-£9.8m, against last year's adjusted figure of £10.6m, despite the launch of sites in Doncaster and Manchester in the spring. A campaign to get players into its centres after the summer has just been launched, which chief executive Keith Rogers thinks will help the company to "bounce back very well".
But while like-for-like UK sales declined 2 per cent in the first six months, the nascent US business put in a much better performance. The single Los Angeles site saw cash profit jump 23 per cent to £0.34m, making it the best-performing centre in the group despite not benefiting from bar or function sales. Little wonder Mr Rogers now intends to double down on California.
Broker Canaccord Genuity has downgraded its full-year adjusted pre-tax profit forecast by 16 per cent to £9.3m, giving EPS of 12.4p (down from 14.5p in 2014).
GOALS SOCCER CENTRE (EPIC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 155p | MARKET VALUE: | £91m | |
| TOUCH: | 153-157p | 12-MONTH HIGH: | 240p | LOW: 155p |
| DIVIDEND YIELD: | 1.7% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 141p | NET DEBT: | 46% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 17.1 | 0.6 | 0.5 | 0.68 |
| 2015 | 17.1 | 4.5 | 6.0 | 0.68 |
| % change | - | +639 | +1100 | - |
Ex-div: 29 Oct Payment: 4 Dec | ||||
