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Patrick McMahon, chief executive of C&C Group, the Irish maker of Magners cider and Tennent’s beer, has stepped down as the company announced it had discovered accounting errors made while he was CFO.
C&C Group said on Friday that it had adjusted its accounts as a result of “accounting mistakes and errors of judgment” as well as “failures in the group’s reporting framework”.
The accounting adjustments charges, which relate to the company’s annual results between 2021 and 2023, amount to €17mn, including an underlying operating profit adjustments charge of €5mn. The adjustments will also impact this year’s interim results, which will be reported in October.
The brewer’s chief executive, Patrick McMahon, “acknowledges that the relevant shortcomings occurred at a time when he had overall responsibility for the group’s finance function”, the company said in a statement on Friday.
“Accordingly, he has informed the board that he will step down as CEO and as a director with immediate effect.”
McMahon will be replaced by the group’s chair, Ralph Findlay, for a period of up to 18 months until a successor is found. C&C’s last chief executive, David Forde, resigned last May following issues with the implementation of a new software system.
Discrepancies in the inventory and balance sheet were flagged to the company’s audit committee earlier this year, the company said, prompting an investigation by an independent accounting firm.
“It is clear from the reviews undertaken that there were failures in the group’s reporting framework and that in parts of the organisation behaviours fell short of the levels of transparency demanded,” C&C said.
Shares in the company fell 8 per cent on Friday morning.
C&C, which manufactures Bulmers and Orchard Pig ciders, is also a major drinks distributor to the UK and Ireland’s hospitality sector.
The company’s full-year results have been delayed as a result of the accounting errors, but on Friday it published an unaudited financial update, in which it reaffirmed its earnings guidance for the 2024-27 period.
