Cider maker C&C Group has seen massive writedowns, prompting its newly-appointed directors to waive their bonuses to fund a staff compensation scheme.
By Ellie Duncan
Chief Executive John Dunsmore, Chief Operating Officer Stephen Glancey and Strategy
Director Kenny Neison have invested a combined bonus worth up to 1.5 million euros in the equity-based incentive scheme.
The bonus pool is expected to pay out several times when the share price hits 2.50 euros.
Commenting on the decision, Dunsmore said: “There is a lot of anger among the workforce over what has happened over the last two to three years and this is an opportunity to get people galvanised.”
SITE VALUE
The company also announced that it will writedown that value of its cider production at its Clonmel, Co Tipperary facility by 130 million euros. There is a further 11 million euros writedown on excess apple juice, which is likely to be poured away by the end of the summer.
C&C expected operating profits to fall 27.4 percent to 90 million euros in the year to the end of February following a 13 percent drop in sales. The site’s value has been cut by 130 million euros to 70 million euros in light of the results.
Dunsmore said that the facility has a capacity of 5.5 million hectolitres, yet it was producing only 1.5 million hectolitres.
In recent years, the company has suffered from poor weather, the smoking ban, overexpansion and the strength of the euro.