Goals Soccer Centres (AIM:GOAL) – do they take us for idiots!
The self-styled market leader in outdoor small-sided soccer centres with 47 sites, including one in California, USA announced fairly dire results for the financial year ending 31 December 2015. The business in the UK is clearly struggling with the development of full size artificial pitches on school and local authority sites fuelling increasing competition to their offering. The era of low interest rates is helping growing numbers of schools develop their own substantial facilities so it’s not a problem that’s going to go away. However, our real issue with the latest numbers is management’s definition of free cash flow…or lack of it.
The financial highlights stated in the results included the following:
· Total sales reduced 4.9% to £33.0m, against prior year (2014: £34.7m)
· Group EBITDA £11.8m (2014:£14.8m)
· Free cash generated of £10.6m, compared to 2014 £13.0m*
· Underlying profit before tax of £8.3m (2014:£10.6m)**
· Non cash exceptional impairment charge of £14.5m made up of goodwill, asset…
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