C&C CEO resigns due to accounting mistakes.

TLDR:

• C&C Group CEO Patrick McMahon resigns over accounting errors
• Mistakes in inventory and balance-sheet reconciliations led to a charge of €5m

C&C Group CEO Patrick McMahon has resigned from his position with immediate effect due to financial mistakes made during his tenure as CFO. The Ireland-based company discovered discrepancies in its inventory and balance-sheet reconciliations earlier this year, resulting in a charge of €5m across its financial years 2021, 2022, and 2023.

Key Elements of the Article

C&C Group CEO Patrick McMahon steps down over accounting errors. The company announced McMahon’s resignation and highlighted financial mistakes that were uncovered during a review of its inventory and balance-sheet reconciliations. These errors led to a charge of €5m across multiple financial years.

The company attributed the errors to a lack of transparency in reporting and noted that McMahon took responsibility for shortcomings during his time as head of the finance function. McMahon will stay with the company until September to ensure a smooth transition.

C&C board chairman Ralph Findlay has been appointed as group CEO immediately, with expectations to remain in the position for 12 to 18 months. The company plans to issue its audited annual report for the 2024 financial year before the end of June.

Despite the financial setbacks, C&C Group reported a net revenue of €1.65bn for the year ended 29 February 2024, with a loss before tax of €39m. The company is aiming to return €150m to shareholders over the next three years and maintain an underlying operating profit guidance of circa €60m.