C&C shares slide after trading data cock-up

Shares in Magners cider maker C&C Group slumped 16 per cent last week after it emerged it had published figures in a trading statement which did not paint an accurate picture of the state of the decline in UK sales.

In its original statement C&C said that revenues derived from its UK cider business had declined by one per cent in the four months to June 30, 2009.

However in what sources described as a "hugely embarrassing" U-turn the group later issued a statement in which it said UK cider revenues had actually fallen 12 per cent.

Other restated revenue figures were overall cider numbers, which showed a decline of six per cent, versus a previously reported rise of three per cent, while the group's spirits and liqueurs business showed a 22 per cent decline, versus a 12 per cent figure.

Overall revenue for the period was restated to show a five per cent fall, compared with an originally reported three per cent rise.

It is understood that no-one will lose their job as a result of the mistake. These were described by a spokesman for C&C as "a straightforward error in reporting lines".

Reporting mistakes aside, despite the recent launch of Magners Pear, the group has admitted to losing share in a growing UK cider market.

While overall cider volumes for the first four months of the 2010 financial year were "ahead of plan", thanks to recent good weather and the launch of the pear cider variant, the group said its overall cider volumes in the UK were down four per cent in the period, which while "better than plan" implied a loss of share in the market.

Yet the success of the pear launch supported the group's objective, it said, "to stabilise cider volumes in the current year".

Following recent good weather the group said it was committing itself to an extra €8m (£6.9m) worth of brand investment in the cider division.

Consequently C&C said it expected to report operating profits for the current financial year at the top end of its forecast range of €77m (£66.2m) to €82m (£70.5m).

This forecast, along with the amount being invested in the cider business, was unaffected by the correction to the group's trading numbers, the group's spokesman added