C&C pulls dividend to save cash; profit falls sharply amid Covid-19 impairments

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Premium drinks maker C&C pulled its final year dividend to conserve cash after annual profit plunged owing Covid-19 impairments and the write down of its Vermont brands.

'Given the absolute focus on liquidity with the high levels of uncertainty, the group will not declare a final dividend for the current financial year,' the company said.

For the 12 months ended 29 February 2020, pre-tax profit fell to €11.6m from €81.8m, while reveneu rose 7.8% to €1.7bn.

The plunge in profit was blamed on exceptional costs amounting to €92.5m with €47.6m directly related to Covid-19, and €34.1m related to write down of Vermont brands.

'In the short-term, execution of our strategy will be impacted by COVID-19, which has necessitated the temporary withdrawal of our future guidance,' the company said.

At 8:31am: (LON:CCR) CC Group PLC share price was +9.8p at 208p