Barr(A.G.) PLC Rockstar Contract Termination & COVID-19 Update (8474Q)
June 23 2020 - 11:06AM
UK Regulatory
TIDMBAG
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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END
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