Patrick McMahon stands down as chief executive at C&C
The chief executive of beer and cider maker C&C has resigned after just a year in the job after the company said it had made a number of significant accounting adjustments dating back to a period when he was chief financial officer at the group.
Shares in the London Stock Market listed maker of Bulmers / Magners Cider and Tennents lager plunged more than 7pc on Friday after the news.
CEO Patrick McMahon will leave the role immediately, almost a year to the day since taking up the top job. He joined C&C in 2005 and held previous roles there include as Group Finance Director and Group Strategy Director.
C&C’s chairman Ralph Findlay will take over as chief executive with immediate effect and stay in the role for up to 18 months, until a permanent successor is found. The resignation came after C&C said it had found failures in the company’s accounting processes and that opportunities to spot and address issues had been missed. The company said on Friday that the total cost of the issues will amount to €17m of adjustments over a number of years and across a range of areas.
“By year, the restatements comprised a €1m adjustment charge in FY2023, a €3m adjustment credit in FY2022 and a €7m adjustment charge in FY2021.
In addition, the Group is expecting to record an exceptional prior year (FY2023) charge with respect to onerous apple contracts of €12m which was initially expected to be recorded in FY2024. The total value of the adjustments (underlying plus exceptional) is €17m.”
Last year C&C said it had taken a financial hit after implementing a new software system at Matthew Clark and Bibendum, a British subsidiary.
The new adjustments have been made following detailed internal and external reviews of inventory and balance sheet reconciliations after discrepancies were notified to the Audit Committee earlier this year, C&C said.
Meanwhile, the company is reporting a pre-tax loss of £111m for the year to the end of February, from a profit of £52m the prior year. It reported weaker demand for cider in Britain but success from Tennent’s and Bulmers here.
