City watchdog launches fraud probe into Goals Soccer Centres
The Financial Conduct Authority (FCA) has reportedly launched an investigation into fraud at Goals Soccer Centres.
The five-a-side football operator announced earlier this month that it was to delist from the stock market after an investigation into its accounting practices found “improper behaviour”.
Trading in its shares was suspended in March after it said it had made a “substantial misdeclaration of VAT” totalling approximately £12m.
According to the Sunday Times, the FCA has now launched a probe into alleged fraud at Goals.
It also reported that audit firm BDO had discovered “substantial destruction” of electronic information at the company in an investigation into the alleged accounting improprieties.
BDO took over as the company’s auditor from KPMG in June 2018.
KPMG could face legal action from the company and its shareholders in connection with the episode.
Goals said earlier this month it expects its listing on the Aim market to lapse with shares cancelled by 30 September.
It said “material uncertainty” about the company’s historical financial statements.
“Work on the Company’s full-year 2018 audit has therefore been suspended until further clarification on the historic financial statements has been obtained,” it said.
Mike Ashley’s Sports Direct is a 19 per cent shareholder in the business.
Sports Direct had previously blasted the company’s handling of the accounting crisis and unsuccessfully attempted to oust its directors at its June annual general meeting.
Goals and the FCA declined to comment.