Five-a-side football club operator Goals Soccer has uncovered substantial VAT accounting errors, totalling to £12 million so far.
Subsequently, they have temporarily suspended from trading on AIM, until they have clarification of the company’s financial position.
The accounting error and policy issues were first announced at the beginning of March, following a business review saying it anticipated 2018 full-year results would be materially below expectations.
Goals warned that the value associated with these errors is still to be finalised but remains significant.
The statement said the board has concluded that there has been substantial misdeclaration of VAT, going back over several years.
Goals also expect that the VAT accounting policies they intend to adopt may have an impact on profitability going forward.
The company said it intends to enter into discussions with HMRC immediately and remains in discussions with lenders to agree on new facilities.
The statement concluded: “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.”