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Tennent's NI anticipated a Covid-19 hit of £3m

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Brands sold by the business include Tennent's, Heverlee, Clonmel and Magners Irish Cider, as well as Whitewater Craft Range, Leffe and Hoegaarden

Brands sold by the business include Tennent's, Heverlee, Clonmel and Magners Irish Cider, as well as Whitewater Craft Range, Leffe and Hoegaarden

PA

Brands sold by the business include Tennent's, Heverlee, Clonmel and Magners Irish Cider, as well as Whitewater Craft Range, Leffe and Hoegaarden

Beer and cider company Tennent's NI provided for an anticipated loss of £3m from Covid-19 at the start of the pandemic, its latest accounts show.

Revenue at the drinks company grew from £55.7m to £58.7m in the year to the end of February 2020, the point where concerns about the global impact of Covid-10 were mounting up.

Pre-tax profits at the firm, which is part of the C&C Group, also went up from £6.1m to £6.6m. Staff numbers fell from 104 to 93.

However, the amount paid by the company in excise duties had more than doubled year-on year from £6m to £12.99m.

That left a net turnover figure of £45.7m, down from £49.7m on the year before.

The company's financial report said it had accounted for the pandemic as an adjusting event, leading to an exceptional charge of £3.115m at February 29 last year.

A note in the accounts said that the company "reviewed the recoverability of its debtor book and advances to customers and booked an expected credit loss provision directly associated with Covid-19 of £707,000 and £2.214m respectively".

It added: "The company also revised the stock balances and in particular stock that was due to expire in the short to medium term and booked a provision of £194,000."

The Culcavy-based company incurred restructuring costs of £449,000 after centralising its accounting.

Brands sold by the business include Tennent's, Heverlee, Clonmel and Magners Irish Cider, as well as Whitewater Craft Range, Leffe and Hoegaarden.

A note on Covid-19 said it had impacted business and economic activity, and in particular the on-trade business of the C&C Group. Pub customers of the business will have had to write off stock as a result of lockdowns during 2020.

The year closed on another lockdown from December 26 which remains in force.

Pubs which serve drink only were permitted to open for just a couple of weeks during the autumn before fresh coronavirus restrictions were introduced.

And some, including the Duke of York in Belfast's Cathedral Quarter, opted not to open at all after the first springtime lockdown.

Despite the pandemic, Tennent's NI said the accounts were prepared on a going concern basis, with the business having the support of C&C Group.

Belfast Telegraph


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