Companies: GOAL   

Despite netting record interim results yet again, Goals, the operator of 29 ‘next generation’ five-a-side soccer centres, suffered a share price fall, reflecting a slowdown in like-for-like sales growth from 10% in 2007 to 4%.

Regardless, Goals still delivered what managing director Keith Rogers described as ‘an outstanding performance’ for the half to June, driven by like-for-like sales growth and new site openings. On sales increased 18% to £11.4m, pre-tax profits increased by 20% to £3.7m, buoyed by growing demand for its five-a-side facilities and Goals’ rapid expansion programme, which has seen it add four new centres in the current year. Goals has a site pipeline of more than 40 sites and believes that the low admission prices at its centres offer resilience against a wider consumer spending downturn.

On the international scene, Goals has granted a master franchise for South Africa and hopes the franchisee will have a number of sites operational in time for the 2010 World Cup there. Meanwhile, the company has also inked a joint venture agreement in the US to open a pilot centre in Los Angeles in 2009.

Based on forecast 2008 profits of £9.2m and EPS of 14.86p, Goals, first backed by Growth Company Investor at 262p, trades on a prospective multiple of 15.5 times, which looks undemanding for a defensive business with good long-term growth fundamentals. Sit tight.

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