‘Red card’ for Goals Soccer over accounting errors
27 Mar 2019
Scottish five-a-side football club operator Goals Soccer has revealed further details of ‘significant’ accounting errors, with around £12m of VAT misdeclared, and has asked for temporary suspension from trading on AIM, pending clarification of the company’s financial position
27 Mar 2019
Goals first announced issues with historical accounting errors and policies at the beginning of March, following a business review saying at the time that it anticipated 2018 full year results would be materially below expectations.
In an update, the company said the value associated with these errors is still to be finalised but remains significant.
The statement said the board has concluded that there has been a substantial misdeclaration of VAT, going back over several years. The final value of the misdeclaration has still to be established, but currently the figure stands at approximately £12m.
Goals also expects that the VAT accounting policies they intend to adopt may have an impact on profitability going forward.
The company said it intends to enter into discussions with HMRC immediately and remains in discussions with lenders to agree new facilities.
The statement concluded: ‘The company believes the above may lead to a material change in its overall financial position and the company is currently unable to provide clarity to the extent of that impact without the receipt of further information.
‘As a result the company has requested that its shares be suspended from trading on AIM.’
Over the past few months the company has made significant changes to its leadership and management. These include the appointment of Martin Johnson as interim chief financial officer, taking over in early February. Johnson was previously CFO of Great Rail Journeys Ltd. Goals changed it auditor in July of last year, replacing KPMG with BDO.
Report by Pat Sweet