24th Jan 2008 07:01
Barr(A.G.) PLC24 January 2008 FOR IMMEDIATE RELEASE 24 JANUARY 2008 A.G.BARR p.l.c. Pre Close trading update and Acquisition of Taut International Ltd Pre Close trading update A.G.BARR p.l.c., the soft drinks group whose brands include Irn-Bru, Strathmore,Tizer and Orangina, is pleased to announce that trading has continued in linewith our plans and that, accordingly, results for the financial year ending 26thJanuary 2008 are anticipated to be in line with expectations. Trading across the summer months was impacted by the comparatively poor weatherhowever the soft drinks market has performed better in the final quarter of 2007with Nielsen reporting total soft drinks value increasing by 4% in the thirteenweeks to 29th December 2007. A.G.Barr has continued to improve the underlying quality of the business in thepast year, specifically: • Successful installation and commissioning of the £6.5m can line at our Cumbernauld site. • Closure of our Atherton factory site. • IRN-BRU sponsorship of the Scottish Football Leagues. • Launch of Rockstar energy drink into the UK. • Acquisition of Vitsmart and Vitaminsmart water brands. • Acquisition of Taut (see below). It is anticipated that the Preliminary Results will be announced on 1st April2008. Acquisition of Taut International Ltd Today A.G.BARR p.l.c. also announces the acquisition of Taut International Ltd,including the Taut (UK) Ltd business responsible for the Taut sports drinksrange, for a nominal consideration of £1. A.G.BARR p.l.c. will acquire theongoing business of Taut International and Taut (UK) on a debt free basis andexpects to complete the transaction before the end of January 2008. The unaudited consolidated accounts for Taut (UK) Ltd and Taut International Ltdfor the year ended 31st December 2006 show a loss for the year of £1.3m andgross assets of approximately £1m. The Taut UK business sells and markets in the UK the Taut range of sports drinkswhich were launched in 2003. Taut has a range of sports drinks in 500ml PETbottles and a drink sachet product which are distributed both in major retailoutlets and sports/health clubs across the UK. Retail sales in 2007 wereapproximately £1m. It is anticipated that the Taut acquisition will not have a material impact onA.G.BARR p.l.c. financial performance in 2008/09. Roger White, Chief Executive, commented: "Our business performance has continued to improve despite the difficulties ofthe poor summer weather. We have delivered our core operating plan which seesstrong underlying profit improvement and are also continuing to broaden ourportfolio of brands capable of sustainable future growth. We are excited about the Taut acquisition and the opportunities it presents inthe fast growing sports drinks category. We anticipate a rapid integration ofthe Taut business and consequential significant improvement in the operatingperformance of this business." For further information, please contact: A.G.Barr Buchanan CommunicationsTel: 01236 852400 Tel: 020 7466 5000Roger White, Chief Executive Tim Thompson / Nicola CronkIain Greenock, Finance Director This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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