Last checked at 23 Mar 2020 07:16
23 March 2020
A.G. BARR p.l.c.
FCA moratorium on publication of results
A.G. BARR p.l.c., ("A.G. BARR" or the "Group"), which produces and markets some of the UK's leading drinks brands, including IRN-BRU, Rubicon, Strathmore and Funkin, today announces a delay to the publication of its full year financial results for the 52 weeks ended 25 January 2020.
Having undertaken and completed our standard year end activities in tandem with our external auditors as required, we were intending to publish our full year results on Tuesday 24 March 2020 as normal.
However on 21 March 2020, in light of COVID-19, the Financial Conduct Authority (FCA) issued a statement requesting that listed companies observe a moratorium on the publication of preliminary financial statements. Despite our state of readiness to report we will comply with the FCA's request.
COVID-19 update
We ended the financial year with encouraging trading performance, which continued into the new year, however the circumstances resulting from COVID-19 are now creating an unprecedented level of uncertainty for the UK and beyond.
In response we are taking swift action across 3 priority areas:
1) The safety and wellbeing of our colleagues, partners, suppliers and customers
Our primary concern from the outset has been for the welfare of our people, their families and the communities in which we operate. From a safety and wellbeing perspective we have initiated a number of actions to protect our people, and to minimise contact with other groups, underpinned throughout by the principle of following Government guidance and advice as a minimum. We have two distinct employee groups - those who can and are working from home, and those who by the nature of their roles are continuing to come to work and carry out their specific roles, such as in our factories, warehouses and across our logistics operations. For the latter group we are offering increased flexibility and support, in relation to dependent care for example, and we are also doing all we can to support those colleagues classified as higher risk and vulnerable across the business.
2) Our operating resilience across the Group
In these challenging times, our business model allows us to respond with agility and pace. Our two main production sites, Cumbernauld and Milton Keynes, provide us with manufacturing capability and flexibility and, for many of our formats, we can produce common SKUs in either location.
We have taken steps to ensure that our raw material availability and stockholding is as robust as possible and, as yet, have experienced no difficulties. However, in common with most food and drink manufacturers, we are reliant on a number of raw materials and packaging types which it is not possible to store on site for more than a few days. This risk is mitigated as far as possible by good levels of finished goods stocks and to date we have maintained strong levels of service into our customer base.
We are taking action to ensure our factories are staffed sufficiently and that our production plans optimise the capacity available at each of our sites.
From a demand perspective, while consumers are currently prioritising take-home purchases, and in some cases shopping more locally as a result of the Government's containment measures, there are significant challenges for the hospitality sector which in total accounts for c.10% of our business. We have multiple routes to market serviced by a combination of distribution partners and a company owned fleet of around 80 vehicles, all of which currently provide us with flexibility and continuity of service. It is our aim to maintain supply into all customers for as long as there is demand in the market and as long as Government guidance permits.
3) Our financial stability
The company has a very strong financial base and our balance sheet remains strong, with net cash in the bank of £10.9m at the financial year end. However as we look forward now, into what is an uncertain and challenging time, we have already taken a number of steps to further protect our long-term financial stability.
While we have a strong balance sheet, we felt it was prudent to draw down our full £60m revolving credit facilities as the COVID-19 situation evolved. In addition, we have now frozen all new capital projects and are reviewing all existing projects, as well as scaling back immediate marketing and commercial activity where sensible across the Group. We are taking a prudent and vigilant approach to all working capital to minimise risk.
We will continue to monitor developments closely and respond as appropriate. We will provide a revised date for the communication of our full year financial results as and when we receive further guidance from the FCA and other regulatory authorities.
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For more information, please contact:
A.G. BARR 0330 390 3900 Instinctif Partners 020 7457 2010
Roger White, Chief Executive Justine Warren
Stuart Lorimer, Finance Director Matthew Smallwood