C&C Group boss steps down after discovery of accounting errors

The boss of drinks supplier C&C Group has stepped down after the discovery of “accounting mistakes and errors” in its results.

 

Current chief executive Patrick McMahon, who was chief financial officer during the three-year period the issues were discovered, has left his role with immediate effect.

 

C&C, which manufactures drinks including Tennet’s lager and Magners and Bulmers cider, appointed an independent accounting firm to investigate discrepancies in its results earlier this year.

 

It found failures in the group’s reporting network and that “parts of the organisation behaviours fell short of the levels of transparency demanded and required” to identify any issues.

 

C&C said action had been taken to ensure the same problems would not happen again.

 

It has made multiple adjustments to its accounts, including an underlying profit adjustment charges of €1m in FY2023, €3m in FY2022 and €7m in Fy2021.

 

It also expects to record an exceptional prior year charge of €12m for FY2023 relating to “onerous apple contracts”.

 

C&C said “with regret” it had agreed it was “in the best interests” of the company for McMahon to step down.

 

He will remain as an employee until September to ensure a smooth transition period.

 

C&C said in a statement: “The group thanks Patrick for his contribution and service over many years.”

 

Ralph Findlay, former chief executive of Marston’s, has taken over as C&C chief executive with immediate effect.

 

He joined C&C as non-executive director and chair in 2022.

 

It is expected he will remain in the position for between 12 and 18 months with recruitment for McMahon’s successor expected to start in the autumn.

 

The group’s next annual report is expected to be issued before the end of June 2024.