Goals post profits rise but debts stay high

GOALS Soccer Centres has played down concerns over its debt levels, as the five-a-side football pitch operator posted a rise in profits.

The group, headquartered in East Kilbride, posted a 7 per cent uplift to 8.8 million for 2009, but its borrowings were also higher than forecast.

Goals, which raised 11m through a share placement last June, revealed net debt of 37.7m, above analyst expectations, raising concerns that it might need to renegotiate banking terms before the current facilities expire in 2013.

Managing director Keith Rogers said Goals would not need to borrow more money from banks or sell more new shares to bolster its balance sheet.

"I'm absolutely certain that won't be happening," he said yesterday, insisting that the higher figure was prompted only by the high level of site openings the company was planning for 2010.

Rogers said Goals would open seven new sites in 2010, one more than expected, although in 2009 the company faced delays which meant fewer sites were opened than it planned.

Wayne Brown, at Altium Securities, cut his target price on the shares by 24 per cent to 130p, predicting that by the end of the year Goals could be within 5m of the limit of its banking covenants.

Shares rose 4p to 150p.