Pre Close trading update

RNS Number : 2325G

Barr(A.G.) PLC

28 January 2010

 



IMMEDIATE RELEASE                                                                                       28 January 2010

A.G.BARR p.l.c.

Pre Close trading update

A.G.BARR p.l.c., the soft drinks group, is pleased to announce that sales over the final quarter have exceeded internal expectations following continued strong performance from its carbonate brands, including IRN-BRU and an excellent overall performance from the Rubicon brand.

It is anticipated that total sales revenue will reach £200 million by the end of the financial year 2009/10.  This represents annual growth of over 20% adjusting for last year's 53rd week.  The soft drinks market, as reported by Nielsen, increased by 2% in value terms in the twelve months to end December 2009. Despite continued volatility in input costs margins have held up well following significant efforts to control costs and improvements in product mix.

Due to these strong results it is anticipated that full year profit will be ahead of market expectations.

Rockstar sales and distribution contract extension

A.G.Barr p.l.c. and Rockstar Inc have announced today an extended 10 year sales and distribution contract for the Rockstar Energy brand in the UK and Eire. The Rockstar brand launched in the UK in 2007 has proved very successful and this new agreement, underlines the partnership and commitment of both parties to the long term development of this exciting brand in the UK.

Update on previously announced Cumbernauld investment and Mansfield closure proposal

Following extensive consultation with all of those affected by the proposals the Company can today confirm that no suitable alternative plans have been identified.

The c.£10 million capital investment at the Cumbernauld site will therefore proceed with immediate effect.  The main capital spend will be spread over financial years 2010 and 2011 with a small balance in 2012.  The closure of the Mansfield production site will take place in early 2011 and the outsourcing of a proportion of our primary logistics functions will proceed over the course of 2010.  It is expected that we will incur one off exceptional charges in financial year 2009/10 of c.£3 million and a further £0.5 million in financial year 2010/11 associated with these plans.  It is anticipated that there will be limited impact to underlying 2010/11 financial performance and the operating cost benefits of the investment are expected to feed through in financial year 2011/12. A further detailed update will be given in our preliminary announcement scheduled for 22 March 2010.

Roger White, Chief Executive, commented:

"The business continues to outperform the market.  We have successfully integrated the Rubicon business adding to the growth momentum while continuing to improve sales of our existing core business.

It is our plan to continue to invest across our business in assets, brands and people while maintaining our focus on cost and efficiency.

2010 will be a challenging year with significant internal change to manage on top of a continued uncertain economic outlook. We remain confident in our approach and the capability of the business to deliver against these challenges."

For further information, please contact:

A.G.Barr                                                                          Buchanan Communications

Tel: [phone]                                                       Tel: [phone]

Roger White, Chief Executive                                        Nicola Cronk / Tim Thompson

Alex Short, Finance Director                                          Christian Goodbody

 

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