C&C Group’s boss has resigned after presiding over numerous accounting blunders while he was chief financial officer.
Patrick McMahon only became the Irish drink giant’s chief executive in May 2023 following a three-year stint as its finance boss.
Best known for producing Magners and Bulmers cider, the Dublin-based company admitted on Friday to ‘accounting mistakes and errors of judgement’ going back to the 2021 financial year.
Blow: C&C Group is best known for producing Magners and Bulmers cider
It has now registered €17million (£14.5million) in retrospective charges, including a €10milion charge concerning inventory matters at its Clonmel cider manufacturing plant.
The business also expects to report a €12million expense for the previous financial year in relation to ‘onerous apple contracts.’
C&C Group shares slumped by 7.7 per cent to 156.2p following the announcement of McMahon’s departure, making them the biggest faller on the FTSE 250 Index.
The firm said McMahon ‘acknowledges that the relevant shortcomings occurred at a time when he had overall responsibility for the group’s finance function’.
‘Accordingly, he has informed the board that he will step down as CEO and as a director with immediate effect.’
McMahon is being replaced by Ralph Findlay, the former longtime boss of pub chain Marston’s, who is expected to hold the post for 12 to 18 months while C&C searches for a successor.
During his two decades in charge at Marston’s, Findlay presided over the company’s dramatic transformation, including the divestment of its brewery operations and change of name from Wolverhampton & Dudley Breweries.
C&C also released its latest annual results on Friday, which showed the firm swung to an £111million pre-tax loss in the year to February, compared to a £52million profit in the previous 12 months.
It anticipates reporting €150million in exceptional charges for the period, which includes a €125million goodwill impairment.
Revenue also fell slightly, slipping by 2 per cent to £1.65billion, due to lower demand for Magners across the UK and a botched software upgrade at its Matthew Clark and Bibendum businesses.
However, the company noted trading during the first quarter had been ‘encouraging’ and should benefit from the upcoming European Football Championship, where England and Scotland are competing.
‘Whilst we remain cautious about the consumer outlook for the year, the market dynamics indicate that consumers are seeking affordable treats, including visits to pubs and restaurants,’ C&C said.
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