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Barr(A.G.) PLC - Rockstar Contract Termination & COVID-19 Update

RNS Number : 8474Q
Barr(A.G.) PLC
23 June 2020
 

                                                                                                                                                    23 June 2020

A.G. BARR p.l.c.

Termination of Rockstar franchise contract & COVID-19 update

 

A.G. BARR p.l.c., ("A.G. BARR" or the "Group"), which produces and markets some of the UK's leading drinks brands, today confirms receipt of the notice of termination of its sale and distribution contract with Rockstar Inc.

Rockstar

As a consequence the contract will terminate on 23 August 2020 but it is anticipated that the Group will continue to manufacture, sell and distribute Rockstar energy drinks, which contributed approximately 8% of the Group's sales volumes in the prior financial year, up to 1 November 2020.

In accordance with the terms of the contract, a one-off compensation payment will be paid to the Group, to be calculated post the contract termination date.

 

COVID-19 update

As the COVID-19 situation has evolved we have continued to prioritise the safety and wellbeing of our employees, suppliers, customers and consumers.  We have successfully introduced a range of enhanced safety and hygiene measures across all our operations.  Thanks to the adaptability, resilience and commitment of our workforce, we have maintained continuity of production and continued to deliver our normal high levels of service and quality.

We have taken prudent measures to conserve cash and control costs, our balance sheet remains strong and the business continues to generate positive cashflow. 

 

As previously announced, trading continues to be adversely impacted by the COVID-19 lock-down measures introduced on 23 March 2020, with trends affecting our major retail, impulse and hospitality channels continuing as previously indicated.  At the current time it remains difficult to predict how the balance of the financial year will evolve, with the easing of lock-down restrictions and resulting impact on consumer purchasing patterns.

 

Further information on the Rockstar contract termination, and details on the Group's first half performance, will be included in the Group's scheduled trading update on 28 July 2020.

 

AGM

The Company's Annual General Meeting ("AGM") will be held at its head office on 25 June 2020 at 09:30 am. In light of Government restrictions in response to the Coronavirus (COVID-19) outbreak in the United Kingdom, and as previously communicated to shareholders, attendance in person will not be permitted at the AGM. 

 

For more information, please contact :

A.G. BARR  0330 390 3900                                 Instinctif Partners  020 7457 2010/2005

Roger White, Chief Executive                                          Justine Warren

Stuart Lorimer, Finance Director                                      Matthew Smallwood

Next update : 28 July 2020


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Quick facts: AG Barr

Price: 435.5

Market: LSE
Market Cap: £487.89 m
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