Barr(A.G.) PLC
24 January 2008
FOR IMMEDIATE RELEASE 24 JANUARY 2008
A.G.BARR p.l.c.
Pre Close trading update
and
Acquisition of Taut International Ltd
Pre Close trading update
A.G.BARR p.l.c., the soft drinks group whose brands include Irn-Bru, Strathmore,
Tizer and Orangina, is pleased to announce that trading has continued in line
with our plans and that, accordingly, results for the financial year ending 26th
January 2008 are anticipated to be in line with expectations.
Trading across the summer months was impacted by the comparatively poor weather
however the soft drinks market has performed better in the final quarter of 2007
with Nielsen reporting total soft drinks value increasing by 4% in the thirteen
weeks to 29th December 2007.
A.G.Barr has continued to improve the underlying quality of the business in the
past year, specifically:
• Successful installation and commissioning of the £6.5m can line at our
Cumbernauld site.
• Closure of our Atherton factory site.
• IRN-BRU sponsorship of the Scottish Football Leagues.
• Launch of Rockstar energy drink into the UK.
• Acquisition of Vitsmart and Vitaminsmart water brands.
• Acquisition of Taut (see below).
It is anticipated that the Preliminary Results will be announced on 1st April
2008.
Acquisition of Taut International Ltd
Today A.G.BARR p.l.c. also announces the acquisition of Taut International Ltd,
including the Taut (UK) Ltd business responsible for the Taut sports drinks
range, for a nominal consideration of £1. A.G.BARR p.l.c. will acquire the
ongoing business of Taut International and Taut (UK) on a debt free basis and
expects to complete the transaction before the end of January 2008.
The unaudited consolidated accounts for Taut (UK) Ltd and Taut International Ltd
for the year ended 31st December 2006 show a loss for the year of £1.3m and
gross assets of approximately £1m.
The Taut UK business sells and markets in the UK the Taut range of sports drinks
which were launched in 2003. Taut has a range of sports drinks in 500ml PET
bottles and a drink sachet product which are distributed both in major retail
outlets and sports/health clubs across the UK. Retail sales in 2007 were
approximately £1m.
It is anticipated that the Taut acquisition will not have a material impact on
A.G.BARR p.l.c. financial performance in 2008/09.
Roger White, Chief Executive, commented:
'Our business performance has continued to improve despite the difficulties of
the poor summer weather. We have delivered our core operating plan which sees
strong underlying profit improvement and are also continuing to broaden our
portfolio of brands capable of sustainable future growth.
We are excited about the Taut acquisition and the opportunities it presents in
the fast growing sports drinks category. We anticipate a rapid integration of
the Taut business and consequential significant improvement in the operating
performance of this business.'
For further information, please contact:
A.G.Barr Buchanan Communications
Tel: 01236 852400 Tel: 020 7466 5000
Roger White, Chief Executive Tim Thompson / Nicola Cronk
Iain Greenock, Finance Director
This information is provided by RNS
The company news service from the London Stock Exchange
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