19th May 2023 08:40
(Alliance News) - C&C Group PLC on Friday announced a leadership shake-up and said it encountered "significant challenges" in implementing a complex enterprise resource planning system upgrade for the Matthew Clark and Bibendum, or MCB, businesses in Great Britain.
C&C, which makes cider drinks such as Orchard Pig, Magners and Blackthorn, saw its shares fall 16% to 129.51 pence each on Friday morning in London.
Referring to its drinks wholesaler Matthew Clark and its wine seller Bibendum, the company said: "The implementation process has taken longer and been significantly more challenging and disruptive than originally envisaged, with a consequent material impact on service and profitability within MCB," it warned.
C&C bought Matthew Clark Holdings Ltd and Bibendum PLB Topco Ltd in 2018 from Conviviality for undisclosed sums.
C&C expects a one-off hit of EUR25 million from the ERP disruption in financial 2024.
The company said it is currently performing in line with own expectations for financial 2024 ending February 28, and is confident in the medium and long-term strategy and prospects.
Meanwhile, C&C Chief Executive Officer David Forde has stepped down with immediate effect, but remains available for a handover period. Chief Financial Officer Patrick McMahon becomes CEO and will retain CFO responsibilities until a replacement is found. Chair Ralph Findlay becomes executive chair.
By Tom Budszus, Alliance News reporter
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