The development, confirmed in a stock exchange filing late last week, has come about following the discovery of what the brand owner called “prior year accounting adjustments” in both directions that date back to McMahon’s time as CFO. The changes, which combined total a EUR5m (US$5.4m) drag on the bottom line, include a EUR1m charge in fiscal 2023 – to the end of February last year – as well as EUR7m in fiscal 2021, slightly offset by a EUR3m credit in the year in between.
C&C’s audit committee was informed of the discrepancies earlier this year and concluded that “there were failures in the group’s reporting framework and that in parts of the organisation, behaviours fell short of the levels of transparency demanded and required …”.
McMahon (below), who relinquished his financial responsibilities as CFO after four years in March, subsequently told the company he would vacate the position of CEO, having assumed the position – and remained as CFO – in May 2023. “The board, with regret, has agreed that it would be in the best interests of the group for Patrick to do so.”
Current company chair Ralph Findlay will take over at the helm with immediate effect for an estimated 12-to-18 months. The recruitment process for a new CEO will commence “in the autumn”, according to the filing.
Last month, C&C Group announced that the distribution operations at one of its Scottish facilities in Newbridge, on the western outskirts of Edinburgh, will transfer to the facility in Cambuslang near Glasgow, 35 miles away.
