Boss of Magners cider maker C&C steps down over accounting errors

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The proprietor of Magners and Bulmers cider has parted pinch its main executive aft accounting mistakes led to nan institution taking a €17m charge.

Shares successful nan drinks institution C&C Group fell 8% to 155.48p successful early trading connected Friday, nan biggest faller connected nan FTSE 250 index, aft nan institution announced that Patrick McMahon, who was main financial serviceman during nan clip of nan accounting shortcomings, had agreed to measurement down.

C&C said soul and outer reviews had discovered a bid of errors successful its caller accounts. It will return an underlying profit adjustments complaint of €5m, including a €1m accommodation complaint for nan 2023 financial year, a €3m accommodation in installments for nan 2022 afloat twelvemonth and a €7m complaint for nan 2021 financial year. The adjustments subordinate to areas that see changes successful nan measurement it accounts for glassware.

It said its 2023 full-year accounts would now see an €12m exceptional complaint pinch respect to onerous pome contracts, which was primitively owed to beryllium recorded successful nan 2024 accounts, adding that nan full worth of nan underlying and exceptional adjustments was €17m.

C&C said: “The group’s main executive officer, Patrick McMahon, was main financial serviceman during nan periods to which these adjustments subordinate and acknowledges that nan applicable shortcomings occurred astatine a clip erstwhile he had wide work for nan group’s finance function.

“Accordingly, he has informed nan committee that he will measurement down arsenic CEO and arsenic a head pinch contiguous effect.”

Ralph Findlay, nan company’s chair, has go main executive and is expected to stay successful station for 12-18 months while a caller leader is recruited.

Detailed soul and outer reviews were launched aft discrepancies were reported to C&C’s audit committee this twelvemonth and an independent accounting patient was appointed to investigate.

C&C said: “In summation to accounting mistakes and errors of judgement underlying these [historical] issues, it is clear from nan reviews undertaken that location were failures successful nan group’s reporting model and that successful parts of nan organisation behaviours fell short of nan levels of transparency demanded and required specified that opportunities were missed to place and appropriately reside nan applicable issues.”

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The company, which is nan largest drinks supplier to nan UK and Irish hospitality sectors, besides said nan troubled installation of an upgraded endeavor assets readying IT package strategy successful its Bibendum and Matthew Clark businesses had continued to measurement connected its UK performance.

The institution reported losses of €111m successful nan financial twelvemonth ended February 2024 against pre-tax profits of €52m successful nan erstwhile year.

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Source theguardian
theguardian