Profit blow for football operator Goals Soccer Centres

New cost controls have been implemented to mitigate the higher costs. Picture: Andrew Worthington
New cost controls have been implemented to mitigate the higher costs. Picture: Andrew Worthington
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Goals Soccer Centres, the East Kilbride-based operator of five-a-side football centres, has warned that profits will be lower after a revamp of its offering resulted in higher costs.

The firm now expects group adjusted profit for 2018 to be between £4.3 million and £4.5m.

It comes as exceptional costs for the year to 31 December looked set to reach £5.5m. This includes higher staffing costs as well as a premium coffee service and improved children’s party offering.

Slower-than-anticipated growth in the US, where the company has four sites, also contributed to what Goals said was a “disappointing” 2018 performance.

Underlying sales meanwhile rose 0.5 per cent to £32.4m in the same period.

In 2019, profit for Goals UK is set to be £600,000 lower due to economic and political uncertainty, while slower-than-anticipated growth in the US means the group also expects a smaller profit from that market this year.

Shares in the company were down by about 15 per cent in morning trade.

Chief executive Andy Anson said new cost controls had been implemented to mitigate the higher costs.

“Frustratingly, a number of cost overruns have impacted 2018 profits,” he said. “It is disappointing that well-conceived initiatives to drive revenue have been delivered at the expense of margin.

“However, we have already taken action to tighten cost control, and processes and procedures are now in place to augment and support margin management. The benefits of these changes will be felt in the current year, as will the effect of the new management team.”