Bulmers-owner C&C chief executive to step down with immediate effect

The company also expects a €25m charge following "significant challenges" in implementing a system upgrade in its UK Matthew Clark and Bibendum drinks business

The company also stated that it had encountered "significant challenges" in its UK market, with C&C expecting to incur a once-off charge of €25m

The chief executive of Bulmers and Tennent's maker, C&C, David Forde is to step down from his role as head of the drinks company with immediate effect, the company announced on Friday morning.

Mr Forde will be replaced by the company's chief financial officer, Patrick McMahon, the company said in a trading update, following "significant challenges" within the company.

"The group announces that David Forde, having navigated C&C through the challenges of the Covid-19 pandemic, has informed the board that he wishes to step down as chief executive officer,” the company announced.

“He will cease to be a director with immediate effect but will be available to help ensure a smooth handover of responsibilities,” the company."

In addition, the group's current chairman, Ralph Findlay, has been appointed executive chair to support the management transition, with Patrick McMahon also retaining his responsibilities as chief financial officer until a new one is appointed.

The company also stated that it had encountered "significant challenges" in its UK market, with C&C expecting to incur a once-off charge of €25m related to “the implementation of a complex Enterprise Resource Planning (ERP) system upgrade” in its Matthew Clark and Bibendum drinks businesses.

“The implementation process has taken longer and been significantly more challenging and disruptive than originally envisaged, with a consequent material impact on service and profitability within MCB,” the company said.

Following the announcements, the company reaffirmed its earnings guidance for the year, with C&C expecting to report an operating profit of €84m, adding, “C&C’s strong free cash flow generation, together with increased balance sheet strength will also enable a reinstatement of dividend payments to shareholders, with respect to FY2023."