Companies: GOAL   

First backed by Growth Company Investor at 262p in 2006, Goals has hit the back of the net with another record annual profit. For calendar year 2007, the operator of 28 5-a-side soccer centres scored 42% growth in pre-tax profits to £7m, on sales up 26% to £20m, reflecting new site openings and strong 7% like-for-like growth. The total dividend was increased by 58% to 1.5p.

Keith Rogers, chief executive, said the ‘outstanding’ performance demonstrated continued demand for Goals’ ‘next-generation’ concept. Alongside new site development, Goals is growing its top line by focusing on customer retention (customer service is key) and maximising pitch utilisation. It also continues to nurture its brand partnerships – very carefully selected to enhance the Goals brand – with football magazine FourFourTwo and UMBRO. Both have proved successful and complement its sponsorship agreement with official European Championships sports drink Powerade.

While management isn’t taking its eye off the ball in the UK, where the growth focus remains, international franchise arrangements will add 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 entered into in the US to open a pilot centre in Los Angeles, then to rollout a number of centres across California, where the potential is huge.

This year, Goals is forecast to grow pre-tax profits to £9.4m and earnings by 32% to 14.8p, ahead of 30% growth in both profits and earnings to £12.2m and 19.2p respectively in 2009. While trading on lofty forward multiples of 23 and 17.7, Goals trades on PEG ratios of less than one times for both this year and next and remains good value, offering fast and highly resilient growth. Add.

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Goals Soccer Centres	AIM	£99.07m	236.50p	-11.00p
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Numis Securities			03/03/2008
Goals nets record profit			03/03/2008
Goals Soccer Centres			25/02/2008
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