In key news on UK stocks, C&C Group PLC (GB:CCR) plunged after its CEO Patrick McMahon resigned, as the company discovered the accounting errors that occurred during his tenure as CFO. He will be replaced by Ralph Findlay, currently the Chair of the board, with immediate effect. The company also released a summary of its full-year performance for FY24 after it delayed its results due to these errors.
Following the announcement, CCR stock was down by over 5% as of writing.
C&C Group is a beverage company that specializes in the manufacturing and distribution of both alcoholic and non-alcoholic drinks. Among its portfolio of brands are Bulmers, Magners, Heverlee, and others.
C&C Group Pays for Accounting Errors
On Friday, C&C Group announced adjustments to its accounts due to accounting errors, errors in judgment, and shortcomings in the reporting framework.
The company further added that these adjustments, totalling €17 million, apply to its annual results from 2021 to 2023. This also includes an underlying operating profit charge of €5 million. Moving forward, these changes will also affect FY25’s interim results due in October.
For FY24, the company anticipates a 2% decrease in revenues to £1.65 billion compared to the previous year, while underlying operating profit is expected to remain in line with expectations.
In terms of shareholder returns, C&C Group proposed a final dividend of 3.97 cents per share. Additionally, it announced its next buyback programme for €15 million, scheduled to start on September 1, 2024. The company also kept its commitment to return €150 million to shareholders by the end of FY27 unchanged.
What is the Target Price for C&C Shares?
On TipRanks, CCR stock has received a Moderate Buy consensus rating based on one Buy recommendation from Shore Capital.
