Failed bid likely to hit Goals

By KRISTY DORSEY
Published on 23/09/2012 00:00

MANAGERS at Goals Soccer Centres will need to prove on Friday that they have kept their eye on the ball throughout the extra-time contest for control of the company earlier this year, analysts have warned.

First-half results for the six months to 30 June will inevitably include exceptional costs – thought to run into hundreds of thousands of pounds – linked to the failed takeover bid by Ontario Teachers’ Pension Plan.

The £73.1 million offer was backed by Goals’ executive team, but surprisingly failed to gain adequate support from investors at a vote in August. The costs will likely offset any gains from the East Kilbride company’s recent successful appeal against VAT charges.

Sahill Shan, leisure analyst at N+1 Brewin, expects a reassuring set of results.

“In very simplistic terms, they need to demonstrate there is good underlying growth in the core business, show an improvement on return on capital, and that debt levels are coming down,” Shan said.

He added that there was no question around the credibility of management led by Keith Rogers, the company’s chief executive and largest shareholder.

Others, however, said it might prove tricky for the senior team to re-engage with investors who rebuffed the takeover plans that the board wanted to push ahead with.

“If you looked at the offer document, you’ll know that it included pretty hefty pay rises for the executive team,” said one observer who asked not to be named.

“You have to ask was the deal in the best interests of the shareholders, or was it in the best interests of the management?”