SHARES in Goals Soccer Centres were hammered this morning after the listed 5-a-side pitch operator issued a profits warning amid rising costs and slower growth in the US.
The East Kilbride-based company said the introduction of ancillary food and beverage and children’s birthday party services has to led to “materially higher initial cost of sales”, which will cut group profits by £300,000. And it has reduced its profit guidance by £600,000 next year “in light of the current economic and political uncertainty”.
Goals said growth at its new clubs in Pomona and Rancho, in California, had been slower than initially anticipated, resulting in non-recurring start-up losses of £800,000. Its share of the costs is £400,000.
The firm, which operates 50 soccer centres, is now guiding on full-year group adjusted profit of between £4.3 million and £4.5m.
Shares fell nearly 16 per cent in the morning session.
Revolution Bars has also warned on profits this morning, sending shares down nearly 20 per cent. The bar operator said that full-year profit will take a knock from "economic and political uncertainties", taking a shine off rising sales over the festive period.
The group saw like-for-like sales for the 26 weeks to December 29 drop four per cent, with the first quarter declining 5% and the second quarter down 3.1%.
As a result, it now expects half-year earnings to come in around £2 million lower than last year and annual earnings of £12m, down from £15m the previous year.
However, December proved more fruitful, with Revolution recording its sixth consecutive year of festive growth, posting a 2.6% rise in like-for-like sales in the four weeks to Christmas Eve.
JD Sports has posted robust sales growth despite the well-publicised tough conditions on the high street.
The sports apparel retailer's sales increased 15 per cent in the 48 weeks to January 5, while like-for-like sales rose 5%, including a positive performance from the much-hyped Black Friday discount event.
The company said its gross profit margins were maintained as it did not enter into "short-term reactive discounting unnecessarily" during the period.
New Look has warned over profits and announced plans for a debt for equity swap with its bondholders as part of a painful restructuring aimed at putting the struggling fashion retailer on a securer financial footing.
The restructuring will see the firm's long-term debt reduced from £1.35 billion to £350 million, alongside a new capital raise of £150 million funded by the issuance of new money bonds.
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