Goals Soccer Centres posts jump in LFL sales

In an update for the 25 weeks to 22 June, the AIM-listed company said it was performing "well" and is cash generative, with UK gross LFL sales up 10.8% and the game count 12.8% higher year-on-year.

Goals, which operates 45 centres in the UK and four in the US, said its US sites are trading "strongly".

Net debt levels remain around £29m and the company said that as reported back in March, while it has exceeded one of its covenant thresholds, it continues to work positively with the bank within its existing facilities.

"We can confirm that standstill agreements have been issued to the company's previous auditors KPMG and the company's previous CFO William Gow," it said. "And for the avoidance of doubt, nothing in these agreements constitutes any admission by the parties of any facts, liabilities, wrongdoing and/or responsibility."

Last week, Sports Direct said it would move to axe the entire board at Goals over the company's refusal to allow it to hire corporate investigator Kroll to look into a range of accounting issues.

Mike Ashley's Sports Direct holds a 19% in Goals, which in March discovered it owed more than £12m in unpaid value added tax (VAT). Its shares have been suspended and the company could be forced to raise new cash to survive or be put up for sale.

Sports Direct said last Friday that it understood that Goals had not appointed independent advisers to examine the tax issue and help in talks with the government tax office.

“Sports Direct understands that these advisers are a division of the company's auditors,” it said in a statement, adding that it would oppose the board's reappointment at its annual meeting "in light of the perceived lack of transparency by the Goals board and the resulting loss of confidence Sports Direct has in the board as a whole".