BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
 You are in: Business  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
E-Commerce
Economy
Market Data
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
Monday, 14 October, 2002, 16:50 GMT 17:50 UK
Cider maker's problems grow
Scrumpy Jack cans
One of HP Bulmer's leading cider brands
Shares in the UK's biggest cider maker, HP Bulmer, lost nearly half their value after the company warned that its profits would fall short of expectations.

The maker of Strongbow and Scrumpy Jack ciders also said that it would be meeting bankers and lenders to discuss its future.

Shares in HP Bulmer have been under pressure since the beginning of September when it said it had uncovered 3.3m of unidentified promotional costs.

The stock has lost nearly 60% of its value since then and its financial problems have led to the departure of both the chief executive and the finance director.

On Monday morning, shares fell a further 46%, but recovered some of their losses to stand 35% lower at 126.5 pence at the end of the day.

No shareholder dividends

The company said that the poor performance of new drinks in the UK and internationally, as well as increases in pension costs, would contribute to a 14.5m shortfall in profits during the current financial year.

Bulmer said it would also be writing off 4.7m for investment in new product development.

The firm said it was scrapping the final dividend for the past financial year and was not intending to pay a dividend this year.

Bulmer is now going to meet its bankers and lenders to talk about its financial position.

The company is being run by an interim chief executive, Colin Brown, who was appointed last month.

See also:

30 Sep 02 | Business
08 Jul 02 | Business
05 Jul 02 | Business
30 May 02 | Business
10 Jul 00 | Business
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes