Magners owner tumbles after £22m software fiasco
SHARES in C&C tumbled after the drinks company behind ciders Bulmers and Magners warned it was likely to take a £22m hit after a botched software upgrade.
In a further blow to the FTSE 250 group, its boss David Forde has decided to step down after nearly three years at the helm. Shares plunged 14.8pc, or 22.8p, to 131p.
The Dublin-based group, which also owns Tennent’s lager, in February launched a major technology project in its British drinks distribution businesses Matthew Clark and Bibendum.
But it has faced severe challenges in trying to implement a system upgrade that has taken longer than expected.
Such setbacks mean the group now expects a one-off hit to profits of around £22m for its financial year to the end of February 2024.
That comes after estimated profits of £73m last year. It will report the final result next week.
A new-look board will be tasked with reversing C&C’s fortunes after Forde, who became chief executive in November 2020, quit his job. Forde, whose previous roles included managing director of Heineken UK, will be replaced by the chief financial officer Patrick McMahon. Ralph Findlay, C&C chairman, will step up to executive chairman to help oversee the management transition.
The FTSE 100 rose 0.2pc, or 14.57 points, to 7756.87 but the FTSE 250 slid 0.05pc, or 9.15 points, to 19289.1. Global stock markets were in positive territory. In Europe, the main benchmark in Germany hit a record high. Japan’s Nikkei 225 recorded its highest level since August 1990.
On Wall Street, the tech-heavy Nasdaq was also trading at levels last seen in August last year. US officials are expected to work through the weekend to broker a deal on extending the debt ceiling ahead of a June 1 deadline.
Oil prices were on the rise with Brent Crude around $76 a barrel.
Royal Mail owner International Distributions Services received another blow after UBS cut its target price to 240p from 265p.
It capped off a dismal week for IDS that saw Royal Mail report annual losses of over £1bn. Shares fell 2.2pc, or 4.5p, to 204.4p.
Faring much better was Smiths Group, the engineering and industrial technology specialist, which raised its annual sales forecast for the third time in five months.
The upgrade came after its revenue rose 13.4pc in the nine months to the end of April. The company now expects its sales to grow by around 10pc for the year to the end of July, up from a previous estimate of about 8pc. Shares inched up 0.4pc, or 6.5p, to 1711p.
The chairman of Vanquis Banking Group is set to bring his fiveyear tenure to an end. Patrick Snowball, who landed the job, will stay until a replacement is found this year. Shares dropped 2.6pc, or 6p, to 224p.
Unbound, the parent company of Hotter Shoes, has put itself up for sale as part of a strategic review of the business. Its bid to raise fresh funds suffered a blow earlier this month after Marwyn Investment Management rowed back on its decision to buy £10m of new shares. Shares plunged 23.1pc, or 0.75p, to 2.5p.
The boss of Future snapped up almost £1m worth of shares on the day the magazine publisher issued a bleak annual forecast and warned of sliding online audience numbers, according to a stock market filing.
Jon Steinberg, who took over last month, bought 90,617 shares at 886p on Thursday. Shares rose 1.8pc, or 16p, to 896p.
There was little respite for Burberry as it ended the week in the red. The luxury fashion firm disappointed investors on Thursday after failing to boost its full-year profit forecast as many had hoped. Shares slid 4.1pc, or 99p, to 2290p.