Goals Soccer Centres uncovers ‘improper behaviour’ during audit

The five-a-side pitch operator – in which Sports Direct has a 19% stake – uncovered “improper behaviour within the company” involving a “number of individuals for a period since at least 2010”.

Work on the company’s full-year audit has been suspended until “further clarification on the historic financial statements has been obtained”.

However, its directors do not believe the timeframe it has been given of completion by September 30 is achievable and expect to delist from the London Stock Exchange effective from September 30.

In June, Sports Direct boss Mike Ashley called for a Goals Soccer Centres boardroom cull after a “perceived lack of transparency” into its ongoing accounting issues surrounding a £12m VAT bill.

The pitch operator originally appointed advisers from a division within the company instead of appointing independent advisers to investigate the matter.

In a letter to the former Goals Soccer Centres chief financial officer seen by Sky News, Sports Direct said Goals Soccer Centres had “changed VAT codes on various service lines… [resulting] in Goals being required to approach its investors to seek and secure further funding to cover this liability.

“It is very difficult to understand how this could be allowed to happen and how it could have taken place without assistance, negligence or incompetence from Goals’ officers, auditors or advisers which would otherwise have prevented or promptly discovered these matters.”