Scottish five-a-side firm admits ‘substantial’ VAT error

The company, which is almost a fifth owned by Sports Direct and House of Fraser owner Mike Ashley, said the mistake went back “several years” and efforts are still underway to determine the full extent of the accounting blunder.

Trading in the firm’s shares have been suspended following the revelation as the error could lead to “a material change” in its financial position, the company said.

And the business further warned that new VAT accounting policies it will now be compelled to adopt “may have an impact on future profitability”.

Goals admitted earlier this month that it had discovered accounting errors and at the time said full-year results - originally due to come out on 12 March - would be “materially below” expectations and delayed their publication.

However the firm, which operates 50 outdoor football centres in the UK and California, said yesterday that trading since 8 March had been strong in both the UK and US.

It had estimated profit for 2018 of between £4.3m to £4.5m, but these figures which are now in question and the company said it now plans to enter into discussions with HMRC immediately.

“The value associated with these errors is still to be finalised but remains significant,” it said.

The group added it would make “further announcements in due course as the results of the investigation become known”.