Goals struggles to score as shares react to forecasts

Published on Monday 1 September 2008 22:08

GOALS Soccer Centres shares sank close to a two-year low yesterday despite a strong rise in pre-tax profits and a boost in the dividend.

The five-a-side football pitch operator said it looked forward with "confidence and enthusiasm" to the rest of the year, as it reported a 20 per cent rise in pre-tax profit to 3.7 million on sales up 18 per cent to 11.4m. Goals also upped its interim dividend by 25 per cent to 0.625p.

However, shares fell 7.5 per cent to 222p as analysts trimmed forecasts for the full year on fears of slowing bar sales.

East Kilbride-based Goals added four sites in the six months to 30 June, boosted by the acquisition of Pro5 earlier this year, and the company said it was on track to meet its target of adding six sites for the full year, and a further six in 2009. Managing director Keith Rogers said its development "pipeline" was "as strong as it's ever been", with another 40 sites in various stages of developments.

The company revealed it has increased its credit facilities with HBOS to 47.5m. Finance director Bill Gow said internal cash generation could cover the group's current development programme, but the new headroom would allow the company to ramp up openings.

Analysts at Panmure Gordon said the profits were "lower than we expected" and that the company was not entirely immune to a fall in consumer spending.

Numis Securities cut its full-year profit forecast to 9m.