Accounting errors cause Goals Soccer Centres to suspend trading

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London-listed football pitch operator Goals Soccer Centres has suspended trading in its shares following a “substantial misdeclaration of VAT” totalling approximately £12m.

In a statement released this morning, the company – which counts Sports Direct as its biggest shareholders – said that “historical accounting errors” meant it could not be clear on its exact financial position, and so it had requested its shares be suspended from trading on London’s Alternative Investment Market (Aim).

The small-sided football pitch company said it intends to “intends to enter into discussions with HMRC immediately and remains in discussions with our lenders to agree new facilities”.

Goals Soccer Centres was due to publish its full year results on 12 March, but delayed the reporting date on 8 March, when it first warned of accounting errors. On 8 March it also issued a profit warning and said it was “reviewing some accounting practices and policies”.

The company appointed BDO as its new auditors in June 2018 and appointed Martin Johnson as its interim chief financial officer in January. Together they are undertaking an investigation into the company’s accounts.

Goals Soccer Centres said it “will make further announcements in due course as the results of the investigation become known”.

Sports Direct, which owns 19 per cent of Goals Soccer Centre’s shares, declined to comment.

More to follow.