C&C's accounting errors under the microscope
A subsidiary of drinks group C&C has just filed an interesting set of accounts that sheds further light on the accounting fiasco that engulfed the Bulmers Irish Cider maker last year.
The imbroglio compelled the group to restate three years of earnings due to errors and led to the resignation of chief executive Patrick McMahon in June 2024. Having taken on the role in 2023, the former chief financial officer barely had his feet under the desk when the group acknowledged the errors publicly and announced his departure.
Will DoorDash takeover of Deliveroo mean better pay and conditions for gig economy workers?
Listen |
28:33
Tennents NI is a distribution company in the group that also produces and markets well-known brands like Tennent's, Magners Irish Cider and Five Lamps. In 2023, the company overstated its operating profits by almost £250,000 (€290,000), according to a note in its latest set of accounts. The restated figure in the 2024 accounts is just over £2.3 million compared with some £2.57 million in the previous, inaccurate financial statements.
The value of the company's stocks was also overstated to the tune of £455,000 in the 2023 filings, according to the note, 'due to the incorrect treatment applied to the inventory of branded glassware'. Tennents NI also understated its 2023 operating expenses by a sizeable £7 million due to 'errors' related to the 'classification of excise duty payments'. Turnover, meanwhile, was understated by a more modest £52,000 in 2023, the correct figure being £61.2 million.
READ MORE
Overall, C&C said last year the errors cost the group €11 million in adjustment charges related to its 2021, 2022 and 2023 financial statements.
[
C&C plunges after chief executive quits amid accounting errors
Opens in new window
]
Bruising though the scandal was, C&C's new chief executive, Roger White, is grappling with more pressing matters currently. In March, just two months after his appointment, the group cut its full-year earnings guidance, largely due to softer cider sales in Britain. It now expects to report underlying earnings in the range of €76 million to €78 million for the year ended February 28th 2025, below targets due to softer trading in January and February.
Consequently, C&C's share price is down by about 1.2 per cent this year and more than 13 per cent over the past 12 months. The group's full-year results, due on May 28th, are keenly awaited, it's safe to say.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Times
5 hours ago
- Irish Times
Reform zoned land tax to help solve housing ‘puzzle', says PwC
Ireland's tax on idle land zoned for housing must be reformed to encourage the level of private investment required to help solve the Republic's housing crisis, PwC has said. In a pre- budget submission, the Big Four accountancy firm has called on the Government to address the issue of housing development costs through taxation policy. 'At a time when the Government is actively focused on setting significantly increased targets for new housing output, it is critical that the policy environment for institutional capital is reviewed, and enhanced, if we are to attract the level of funding which will be required to support these new targets,' PwC said in the submission, published on Tuesday. At the top of the firm's wishlist for Budget 2026 is reform of the residential zoned land tax. Introduced in 2022 to encourage landowners to sell idle or vacant sites upon which housing could be developed, the tax is levied at 3 per cent annually on the market value of the land. READ MORE PwC said that while the tax is aimed at bringing down the cost of land by encouraging it to be brought to market, there are 'several issues' with its implementation that should be addressed as a 'matter of urgency'. Currently, landowners can defer payment of the tax under certain conditions. However, the Revenue Commissioners can claw back these deferred obligations if the ownership of the land changes. The Coalition should remove these clawback conditions for developers who sell unfinished land to third parties but are being engaged to complete the development on the site, PwC said. This so-called forward funding model is an increasingly common feature of the market here because it gives developers a degree of certainty around the financing of large-scale housing projects. PwC also said the stamp duty residential rebate scheme, which is due to conclude at the end of 2025, should be extended. The firm has also called on the Coalition to temporarily reduce the 13.5 per cent VAT rate on construction, 'specifically targeted at new, affordable houses and apartments for first-time buyers'. PwC said the average cost of delivering a three-bed, semidetached house in the greater Dublin area is €408,000, €48,478 of which is related to VAT charged at the 13.5 per cent reduced rate on the supply of immovable goods. A temporary reduction would be 'an effective measure to enable viability and increase affordability of newly developed residential property', PwC said. Paraic Burke, tax leader at PwC Ireland, said that at a time when geopolitical risks are rising, the Republic must look to 'control the controllables' domestically. 'While there are constraints about what we can do at international levels, domestically, Ireland has full control to determine its destiny on key domestic issues such as housing, decarbonisation and energy security,' he said. Mr Burke said a whole-of-government approach is required to solve the Republic's 'housing puzzle'. Among other things, PwC has also called on the Coalition to reduce the 33 per cent capital gains tax rate, which it said is one of the highest in Europe. A new 20 per cent rate would help to promote the transfer of businesses to future generations of business leaders, it said.
Irish Times
5 hours ago
- Irish Times
Fiscal council predicts another surge in corporation tax
Ireland could be on the brink of another surge in corporation tax , according to the Irish Fiscal Advisory Council (Ifac) . Despite the current uncertainty surrounding global trade, the budgetary watchdog expects receipts from the business tax to rise by about €5 billion from 2026 onwards as additional revenue from the new minimum tax rate of 15 per cent over and above the State's headline rate of 12.5 per cent flows into the exchequer. Big multinationals with a turnover above €750 million have been liable to pay the higher rate since 2024 but are not due to make their initial payments under the new rate until the middle of next year. This is expected to boost tax receipts here by an additional €3 billion in 2026 and €2 billion in 2027. READ MORE [ Corporate tax receipts drop 30% as Trump's tariffs bite Opens in new window ] But there are several other trends likely to drive corporate tax higher in the short term, the council noted in its latest fiscal assessment report. Most of the biggest taxpayers here are not currently impacted by trade tensions and are forecast to report increased profits this year resulting in higher tax payments, it said. Some 60 per cent of the State's €28-€29 billion corporate tax base is paid by 10 large firms in the IT and pharma sectors here, which have so far been exempt from US tariffs. Several of these firms have also been availing of generous tax-cutting capital allowances which are due to run out, meaning they will be liable for more tax. The council also suggested that the current surge in pharmaceutical exports, which jumped by 154 per cent in the first quarter as firms rushed to get merchandises into the US before tariffs, is likely to result in bigger tax payments this year 'even if exports slow down for the rest of the year'. As a result, the council said the Government's forecast that corporate tax receipts would remain broadly unchanged at €28 billion in 2026 was 'not realistic'. While highlighting the potential upside risk to corporate tax, Ifac chairman Seamus Coffey said the tax was extremely volatile and could be subject to steep falls as well as increases. 'In the short term, do we see anything that might lead to a downside risk? No, we don't see it but that doesn't mean it's not there,' he said. 'That's very much firm specific ... that's down to the profitability and decisions these companies make, whereas we're looking at broad macro trends that can influence corporation tax,' he said. Mr Coffey said the State's corporate tax base was currently between €28 and €30 billion but 'go four or five years you could have a forecast range of plus or minus €15 billion.' In its latest report, the watchdog also took aim at the Government 's spending plans, claiming they lacked 'credibility'. It said the Government had originally projected spending in 2025 to be €6.9 billion higher than in 2024 but post-budget overruns meant spending in 2024 ended up being €3.2 billion higher. Despite this, the forecasts for 2025 remained unchanged. 'This is simply not credible,' it said. It also noted that current spending grew at a rate of 5.9 per cent during the first five months of this year amid higher-than-expected spends on education, health and justice when the Government forecasts are for a full-year increase of 1.4 per cent. The council also claimed that the Government was failing to provide medium-term spending forecasts and failing to commit to any meaningful fiscal rule that would anchor annual spending increases.
Irish Times
6 hours ago
- Irish Times
Talk of Thomas Frank moving to Tottenham won't distract Nathan Collins from task in hand
Ireland captain Nathan Collins and his new team-mate at Brentford, Caoimhín Kelleher , are braced for a preseason without their club manager Thomas Frank. The Danish coach is being linked to the vacancy at Tottenham Hotspur after the Europa League champions sacked Ange Postecoglou. 'Every time I turn on the TV, I see it,' admitted Collins in advance of the friendly in Luxembourg. 'Can't get away from it, unfortunately. I have my own problems with the game tomorrow, staying fit and looking after myself – I haven't taken too much of an interest.' Reportedly, Frank has a release clause, believed to be around £10 million (€12 million), to break a contract that runs until 2027, with that figure expected to rise if back room staff at Brentford follow the 51-year-old to north London. READ MORE Liverpool sold Kelleher to Brentford last week for an initial £12.5 million (€15 million), rising to £18 million (€21 million) based on performance-related add-ons. 'We have been joking about [Frank's possible departure],' said Collins. 'But he is all right. Brentford is a good club and whatever happens they will have a plan. There are good people in the back room plan, so there will be a plan. If he stays, even better. We can only see what happens.' Collins, who was the only outfield player to play every minute of the Premier League's 38-match season in 2024/25, was previously asked by club officials about Kelleher's character. 'A few people asked me what he was like, obviously I spoke highly of him, I'm not going to lie. But no, listen he done it all himself, he's shown what he can do on the highest level of football for Liverpool. 'I am looking forward to it, I get on really well with him here, he shows his qualities as a 'keeper as well. But it will be even better when we can train together every day and build our relationship a bit more, on and off the field, to help Brentford and Ireland as well. I am buzzing for him, it's a great move for him and he deserves to be a No 1 at a club.' [ Caoimhín Kelleher signs for Brentford from Liverpool in deal worth up to €21m Opens in new window ] On Ireland facing Portugal in the World Cup qualifiers in Lisbon on October 11th and Dublin on November 13th, Collins said he did not learn anything new from Sunday's Nations League final win over Spain. 'We didn't need to see last night to know how good Portugal are. We know how good their squad is, their depth of players is unbelievable, but if we can do what we can control and the manager wants from us we will create our own problems against Portugal. 'We're a completely different team to Spain and will create completely different problems and defend a different way. We'll frustrate them in ways that they won't like. We know the standard and how good they'll be but they have to know how tough a game it will be for them against us.'
