Goals PLC has hit back at Sports Direct’s claim that an investigation into a £12 million VAT error is not independent.
The East Kilbride-based football centres operator insisted there was no conflict of interests in employing forensic accountants from the same accountancy firm that audits its books.
Sports Direct, owned by Mike Ashley, is Goals’ largest shareholder with more than 18% and says it will vote to remove the company’s directors at its AGM this month. Ashley’s firm had demanded that a corporate investigator from Kroll be installed to look into Goals’ accounts.
Goals said today: “Goals has employed a full and extensive professional advisory team to advise the Board. The auditors of the Company are BDO, who were appointed on 26 June 2018. The Company has also engaged a separate independent forensic division of BDO to analyse historical accounting errors and policies.
“In addition, the Company has engaged RSM Tenon and a specialist VAT consultant to assist it in its ongoing discussions with HMRC. The Company have now engaged Deloitte LLP to work alongside its advisors and its lenders in assessing its future corporate options.
“The Board notes the desire of Sport Direct to appoint Kroll. The Board continues to believe this is not appropriate and not in shareholder’s best interests given, in particular, that it would be disruptive to the ongoing investigations and would hinder not only the timely resolution of the process but also the completion of the Company’s audit for the financial year ending 31 December 2018. The Company is committed to making announcements for all shareholders in due course as the results of its investigations become known.
“The Board would like to re-emphasise that its investigations into historical events at the Company are wide ranging. These investigations cover the actions and decisions of the Company over an extended period of time. Again, when the results of these investigations are clear an appropriate announcement will be made.
“The Company notes the voting intention of Sports Direct in relation to the Company’s upcoming AGM. The Board respects the views of all its shareholders and will release the voting results of the meeting post the meeting on 28 June 2019.”
