Five-a-side Football Company Discovers Accounting Errors after a Business Review
Goals Soccer Centres, a UK-based company, operating dedicated five-a-side football centres across different locations in the UK, has now revealed that it expects the 2018 full year financial results to be below expectations, after a number of accounting errors were discovered as direct outcome of a business review conducted by the company.
The company is known for operating 46 five-a-side football clubs across different locations in the UK. In addition, it also runs 4 clubs in the US and has more than 700 employees.
The company has issued a statement to the Stock Exchange in which it has said that as part of the review of the financial performance of the company for the fiscal year ended December 31, 2018, the board and the company’s auditors are working together to find solution to the accounting errors that have been discovered, and are also reviewing some of the existing accounting policies and practices.
Most of the accounting adjustments does not involve cash or bank, this nevertheless points towards the football company exceeding one of its bank covenants as at December 31, 2018. The football firm is in talks with the bank over re-negotiating facilities.
The company has declared the financial year 2018 to be disappointing because of lower margin in ancillary activities like children’s parties and food items, slower growth rates in the US and bad weather in first six months of the year.
In its latest announcement, the company has said that trading in January and February of this year has been strong with an increase in sales, in both the US and UK, over the same period in the year 2018.