Goals Soccer Centres (GOAL) has grown at rapid pace since its 2004 float and in the past year the five-a-side soccer centre operator has focused on getting its house in order to prepare for the next leg of growth. An operational review led to an increase in head office resources and the company has also installed a new chairman. The costs of the head office investment, along with higher business rates and the impact of poor weather conditions led to a 7 per cent drop in adjusted profit before tax to £4.1m.
But chief executive Keith Rogers says that the company is well positioned for future growth, and a first foray into the US has gone well with the Los Angeles centre reporting sales growth of 35 per cent. The company is now laying plans to expand its footprint in the US where chief executive Keith Rogers says there is strong demand for soccer facilities.
Following a failed bid approach last year, bid talk has continued to swirl with the shares spiking up to a three-year high of 162p last month on news that activist fund Harwood Capital had increased its stake to over 15 per cent. Broker Canaccord Genuity has raised its target price by 38 per cent to 200p, and expects full-year adjusted EPS of 14.5p, rising to 15.4p in 2014 (from 14.2p in 2012).
GOALS SOCCER CENTRES (GOAL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 152p | MARKET VALUE: | £79.8m | |
| TOUCH: | 151p-153p | 12-MONTH HIGH: | 162p | LOW: 116p |
| DIVIDEND YIELD: | 1.2% | PE RATIO: | 19 | |
| NET ASSET VALUE*: | 110p | NET DEBT: | 83% | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2012 | 16.8 | 1.57 | 0.90 | 0.68 |
| 2013 | 16.6 | 4.05 | 6.00 | 0.68 |
| % change | -1 | +157 | +567 | - |
Ex-div: 23 Oct Payment: 29 Nov *Includes intangible assets of £6.9m, or 13p a share | ||||
