A Growth Company Investor recommendation at 262p in 2006, Goals Soccer Centres, now 307p, hit the back of the net with another record annual profit. For calendar year 2007, the operator of 28 five-a-side soccer centres scored 42 per cent growth in pre-tax profits to £7 million, on a 26 per cent sales hike to £20 million, reflecting new site openings and encouraging seven per cent like-for-like growth. From earnings up 50 per cent to 11.7p, the total dividend was increased by 58 per cent to 1.5p.

Managing director Keith Rogers said that the ‘outstanding’ performance demonstrated continued demand for Goals’ ‘next generation’ concept. As well as developing its pipeline of sites, Goals is growing its top line by focusing on customer retention (customer service is key) and maximising pitch utilisation. Brand partnerships, very carefully selected to enhance the Goals brand, with football magazine FourFourTwo and sportswear manufacturer UMBRO, are also being nurtured. Both are proving successful and complement Goals’ sponsorship tie-up with official European Championships sports drink Powerade.

While management is not taking its eye off the ball in the UK, where the growth focus remains, international franchise arrangements are adding overseas spice. Goals has entered into a deal to grant a master franchise for South Africa, where several centre openings are planned ahead of the 2010 World Cup, while a joint venture has been formed in the US, where a pilot centre is planned for Los Angeles, prior to a roll-out of centres across soccer-mad California.

This year, Goals is forecast to grow pre-tax profits to £9.4 million and earnings by 32 per cent to 14.8p, ahead of 30 per cent growth in both profits and earnings to £12.2 million and 19.2p in 2009. Those estimates place the shares on lofty forward multiples of 21 and 16, yet the resultant price-earnings growth (PEG) ratios of less than one times for both this year and next show that Goals remains good value, offering fast growth and resilience in the five-a-side sector. Add.

Goals Soccer Centres	AIM	£95.51m	228.00p	0.00p
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