East Kilbride-based Goals Soccer Centre have warned that results could be poorer than predicted.
The five-a-side company have warned shareholders its full-year results will be “materially below” expectations in both 2018 and 2019.
In their latest statement, the board confirmed that “a number of new accounting policies, corrected accounting treatments and revised VAT assumptions” had taken place.
Chiefs noted that “the nature of the historical accounting errors uncovered” mean they have appointed forensic accountants, alongside its auditors, to investigate and report on historic accounting policies and practices used by the company.
They add this is “in the recognition of revenue and the preparation of financial statements.”
They note they are currently in “active dialogue” with HMRC in the hopes of “resolving any misdeclaration and also to establish a final value" which could impact on the end of year figure.
They note they “may not” be in a position to complete its full year 2018 audit by the 30 June 2019 deadline as set out in the AIM Rules and Companies Act 2006, and “trading in the shares of the Company remains suspended”.
Despite the woes the board state that “trading since 26 March 2019 has continued to be strong in both the UK and US, over the comparable period in 2018.”
Goals operates 50 outdoor football centres in the UK and California, will now have to renegotiate the terms of its loans, with the accounting error breaching the terms of its banking agreement.
