Maurice Pratt's resignation was not unexpected. Trading for the six months to the end of August showed revenues down 13.2% to €302.4 million. It's been quite a roller-coaster ride for this business since 2006 when its flagship product, Magners appeared to have single-handedly rescued cider drinking from years of steady decline. The share price soared by more than 150% that year. Unfortunately, the notoriously fickle British drinks market seems to have moved on and things have not been helped by the poor summer weather, the economic downturn and the growth in competion from the likes of Bulmers Original.
The company has now begun an in-depth strategic review and hopefully a newly appointed CEO will able to execute a new strategy to return the group to profitable growth.
Strikes me as a Sell or possibly Hold for now, pending news of the new CEO.
http://www.independent.ie/business/irish/cider-partys-over-1496189.html
