Shares of East Kilbride-based Goals Soccer Centres plc were temporarily suspended on Wednesday at the request of the company “pending clarification of the company’s financial position.”
The move followed a trading update in which Goals said there had been “a substantial misdeclaration of VAT, going back over several years …”
The full statement read: “Following our announcement on Friday 8 March 2019, the company has continued to work with its auditors to assess historical accounting errors and policies adopted by the company.
“The value associated with these errors is still to be finalised but remains significant.
“The company today announces that as part of its assessment the board has concluded that there has been a substantial misdeclaration of VAT, going back over several years.
“The final value of the misdeclaration has still to be established, but currently the figure stands at approximately £12.0 million.
“The company also expects that the VAT accounting policies they intend to adopt may have an impact on profitability going forward.
“The company intends to enter into discussions with HMRC immediately and remains in discussions with our lenders to agree new facilities.
“The company believes the above may lead to a material change in its overall financial position and the company is currently unable to provide clarity to the extent of that impact without the receipt of further information.
“As a result the company has requested that its shares be suspended from trading on AIM.
“The board would also like to confirm that trading since 8 March 2019 has continued to be strong in both the UK and US, over the comparable period in 2018.
“The company will make further announcements in due course as the results of the investigation become known.”