Goals Soccer Centres uncovers 'improper behaviour' in accounting policies and practices

Football club operator Goals Soccer Centres announced on Friday that following ongoing detailed investigatory work into its historic accounting policies and practices, it had become evident that there had been "improper behaviour" within the company.

Goals said the actions involved a number of individuals for a period since at least 2010 and that due to the initial findings, there was now "material uncertainty" in relation to its past financial statements.

Work on the company's full-year 2018 audit has also been suspended until further clarification on the historic financial statements could be obtained.

The AIM-listed outfit added that with a key criteria for the resumption of trading in its ordinary shares was the completion and publication of its 2018 full-year audited financial statement by 30 September, it no longer expects shares to resume trading as it does not believe the timeframe for the audit will be achievable.

Goals' financial woes weren't finished there either, the group confirmed that there had been no material developments in its ongoing dialogue with HMRC aimed at establishing a timetable for resolving any misdeclaration of VAT and in establishing a final value of money owed. Goals also noted that discussions with debt providers remained "positive", with lenders allowing its existing debt facilities to remain in place after the initial 31 July review date despite one of its covenant thresholds being exceeded.

On an operational note, Goals saw year-to-date sales across its 45 sites in the UK grow 11.5% on a gross like-for-like basis, while its US gross like-for-like sales were up 14.5%.

As of 0905 BST, Goals shares were suspended at 27.20p.