THE new boss of Goals Soccer Centres has declared the decision to continue its pitch modernisation investment shortly after taking the reins in April is paying off, with trade rebounding in the summer after a weather-hit opening quarter.
Shares in the East Kilbride-based company, which has 5-a-side centres across the UK and in the US, climbed by nearly four per cent after it signalled a return to like-for-like sales growth. That came after first quarter trading was hit by the Beast from the East, which knocked sales in the subsequent three months as amateur 11-a-side games were deferred from the first to the second quarter.
Sales at Goals dipped to £16.2 million in the six months to June 30 from £17.4m at the same stage in 2017. The company said it made an interim loss of £1.1m, after taking into account £2.7m of exceptional items relating to restructuring and an impairment on an under-performing site.
Investors, however, appeared to be encouraged by improved trading since the period-end, as the company returned to growth.
Andy Anson, the former Manchester United and Disney executive who succeeded Mark Jones as chief executive, said Goals is benefiting from his early decision to continuing its arena refurbishment programme. He said the revamp of its pitches meant it was in a good position to capitalise as demand picked up over the summer.
Goals has so far modernised 260 of its 460 arenas, which are located across its 46 sites in the UK, and reports improved performance where facilities have been improved.
While England’s run to the World Cup finals did provide some impetus for more people to book five-a-side matches, Mr Anson said the impact made by the pitch investment has been more telling.
The company is currently investing £3m to upgrade a further 78 arenas, after which 73% of its estate will have been upgraded. It will also mean 39 of its 46 UK clubs will have five or more new pitches.
Mr Anson said the opportunity to “keep investing, keep improving in the UK, and to expand the business strategically and effectively in the US” is an exciting prospect for the firm.
Noting that there are now more people playing football than this time last year, he said: “As a management team, we feel we are in a good place at the moment. We have a clear vision.”
The company confirmed Mr Anson is carrying out a review of the company.
Asked if that would involve trimming the estate, he said there are “two or three” outlets where the board was mulling whether to go ahead with modernisation investment.
A key thrust of the review will be to look at how the company can achieve more growth through digital marketing, with Mr Anson saying his ambition is for Goals to be as good as Cineworld or Vue Cinemas in areas such as online interaction.
The review will look at sponsorship opportunities. Goals announced yesterday that it had signed a three-year deal with Energy Check, under which the company will receive an annual fee in return for marketing rights across the estate. Further deals are being explored.
Meanwhile, Mr Anson highlighted the opportunity to expand in the US under its joint venture with City Football Group (CFG), owner of Manchester City. Goals added a third outlet in California, at Rancho Cucamonga in Los Angeles, in February, with a fourth due to open in Covina, LA, in November.
The company will look to leverage its association with CFG by trading under the Manchester City brand at its soccer academies across the Atlantic. He also said Goals was taking steps to encourage more females to play football by introducing women’s leagues in its centres.
“We are working on some pretty exciting marketing initiatives that we think would attract more women to play,” Mr Anson added.
Shares in Goals closed up 2.5p, or 3.5%, at 73.5p.
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