Mike Ashley company suspends shares
A Mike Ashley backed company has suspended trading in its shares.
An investigation has discovered ‘substantial misdeclaration’ of VAT to the government.
The investigation has so far uncovered £12m that has been ‘misdeclared’ by the company.
As well as suspending trading in its shares, the company has admitted that it will have a major impact when they release their next set of financial figures.
Mike Ashley via Sports Direct owns around 19% of the company and in February 2018 became the single biggest shareholder when increasing the shareholding to 14.2m shares.
Goals Soccer Centres operates both in the UK and overseas, including bases in Newcastle, Sunderland and Middlesbrough.
Report from Reuters:
‘Five-a-side football pitch operator Goals Soccer Centres suspended trading in its shares on Wednesday after saying it had identified “substantial misdeclaration” of value added tax (VAT) as part of an ongoing investigation into historical accounting errors.
The company, in which Sports Direct and Newcastle United owner Mike Ashley has an 18.92 percent stake, said it was yet to establish the final value of misdeclarations but that the value identified so far was about 12 million pounds.
The AIM-listed company, whose 5-a-side pitches and FA affiliated leagues are a familiar feature of UK towns and cities, said on March 8 it was investigating historical accounting errors whose financial impact was significant.
The company, which replaced KPMG with BDO as its auditor in June last year, has also warned that its 2018 results will be materially below expectations.
The Scotland-based company said it would enter into discussions with the government and that it remained in talks with its lenders over new facilities.’
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