Ireland’s C&C Group has revealed that it is seeking inclusion in London’s FTSE UK Index Series and will delist from the Euronext Dublin exchange in due course.
The owner of drink brands such as Bulmers, Magners, and Tennent’s stated that it was making the move because most of its revenues, profits and activities were now derived in the UK after its acquisition of Matthew Clark and Bibendum last year.
Stephen Glancey, Chief Executive of C&C, said: “Of the €1.5bn turnover, €1.3 of it’s in the UK. That’s a reflection of where the market is.”
He added: “The Dublin market is Euronext, we don’t have a lot of European shareholders, the biggest proportion of our shareholders are in the UK, and all the stuff with Brexit impacts them. There’s a bit in this of making sure that we’re covering options when Brexit happens.
“But equally the liquidity flow in that market is much deeper. We’ll attract new shareholders into to the stock.”
However, C&C stressed that it will remain domiciled and a tax resident in Ireland, with its registered and corporate head office located in Dublin. The group will also retain its manufacturing, commercial and brand presence in the country.
The plan was revealed ahead of its AGM yesterday at which the group gave an update on its trading. C&C stated that it had made a solid start to its new fiscal year with trading to date in line with current market expectations.
Glancey commented: “FY19 was a transformational year for the Group. The acquisition and subsequent performance of Matthew Clark & Bibendum contributed to earnings growth of over 20%. Reflecting the inherent strength of the C&C business today, our objective is to again deliver double digit EPS growth in FY20. Thereafter, we will target EPS growth in a mid to high single digit range.”
