Premium drinks company C&C Group chief executive Patrick Mcmahon has resigned “with immediate effect” over the revelation of a series of financial errors.
It was unveiled that the drinks company had financial shortcomings that span across multiple years and involve significant adjustments to the group’s financial statements.
This includes a total underlying operating profit adjustment of £4.3m and an exceptional charge of £10.2m, attributed to “onerous apple contracts”.
Mcmahon, who acted as chief financial officer at the time of the accounting irregularities, told the board that he would step down as CEO and director immediately.
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The company, which has a portfolio that includes drinks brands Bulmers, Magners, and Tennent, said that with “regret” it agreed with Mcmahon’s decision to step down.
C&C Group said: “The Group’s chief executive officer, Patrick McMahon, was chief financial officer during the periods to which these adjustments relate and acknowledges that the relevant shortcomings occurred at a time when he had overall responsibility for the Group’s finance function.
“Accordingly, he has informed the board that he will step down as CEO and as a director with immediate effect. The board, with regret, has agreed that it would be in the best interests of the Group for Patrick to do so.
“It has been agreed that he will remain as an employee until the end of September to facilitate a smooth transition.”
News of the CEO’s sudden departure sent shares plummeting 12% as the company announced that in the wake of the financial issues, it expects its revenue to be down 2% for the coming year.
The Magners-maker added: “There will clearly also be an impact on the unaudited FY2024 interim results, details of which will be set out in the FY2025 interim results in October.”
