Goal Soccer Centres shares tumble off disappointing UK performance
Shares in Goals Soccer Centres dropped after the firm reported a like-for-like sales decline of 2% in a trading update on Thursday.
FTSE AIM All-Share
744.29
12:45 18/04/24
Goals Soccer Centres
27.20p
09:54 27/09/19
Travel & Leisure
7,491.51
12:44 18/04/24
By 1133 BST, shares in the football centre operator had plunged by 6.48% to 202p.
The AIM-listed company said sales for the period were in line with last year at £17.1m, and were affected by adverse weather conditions and softness in the casual market.
The company said trading strengthened in the second quarter but that was insufficient to recover from a first quarter shortfall.
The company’s much smaller US business had a strong performance of 20% increase in like-for-like sales in the first half of the year.
Goals Soccer Centres said the US site pipeline is developing with construction to start on one site in the second half of the year, and three further sites planned.
N+1 Singer downgraded its rating on the stock from ‘buy’ to ‘hold’ and revised its price target to 209p.
Analysts said the update was a mixed bag due to good indicators around strategic moment, but a disappointing UK performance which prompted an earnings per share downgrade of 6-11% over the financial years 2015-17.
“However, owing to a couple of adverse dynamics at play in the period, we feel it would be hasty to rubbish the recovery thesis and feel that the next six months will give a much better understanding,” N + 1 Singer said in a note.