Companies: GOAL   

Goals, recommended by Growth Company Investor as a strong buy at 262p in May, may trade slightly below our recommendation level, but the company has played a share price blinder since floating at 62p in December 2004.

And we remain convinced about the five-a-side soccer group’s striking growth prospects, with football still the most popular sport in the UK, and small-sided soccer growing rapidly as a commercial activity among all age groups.

Half-time figures to June were strong indeed, with pre-tax profits surging 72% to £2.1m, on sales up 35% to £7.5m, lifting earnings 70% to 3.2p. The strong financial performance was driven by like-for-like sales growth of 5% as well as new site openings.

Managing director Keith Rogers says demand is strong for the group’s sites, of which the group has openened ten since it floated on AIM, now boasting a total of 21 centres across the UK, with a strong pipeline to come through.

Altium Securities recently initiated coverage on Goals with a 330p target price. This calendar year the broker predicts growth in pre-tax profits from £2.9m to £4.8m, kicking earnings 70% higher to 7.8p. For 2007 investors could expect profits of £7.1m and earnings of 11.6p, placing Goals on forward multiples of 33 and 22.1.

For most companies those ratios would look pricey, but as earnings are growing at an exciting 70% and near-50% this year and next, it leaves Goals on palatable PEG ratios of 0.4 for the next two years. We remain fervent fans.