Allied Domecq warns of pounds 181m charges
Tuesday 25 August 1998
The company said currency fluctuations will knock pounds 30m off profits in the full year, in line with the pounds 20m effect in the first half. But Allied revealed a host of additional exceptional charges including a pounds 45m deficit arising from a five-yearly valuation of the pub estate; a pounds 30m loss from the revaluation of short leasehold pubs and pounds 40m of other losses including losses of the disposal of Gleneagles Spring water and a pounds 20m goodwill write off on the proposed merger of its Victoria Wine off-licence chain with Whitbread's Threshers' division. In addition to the new charges there will be a pounds 36m deficit arising from a previously announced debenture redemption premium.
News of the costs over-shadowed a trading statement which the company claimed showed it was still on track despite the strong pound, the Asian crises and the effects of the poor British summer.
Trading in the 11 months to 31 July has been "broadly as expected, the company said." The key spirits and wine division is on track for modest growth in the second half except in Asia where the principal impact has been on the duty free business.
Ballantine's whisky has grown volumes in most European markets while Beefeater gin has grown strongly in Spain. US volumes have been recovering after the de-stocking by retailers earlier in the year.
In retailing, UK pub profits have been hit by the poor summer weather. In the Dunkin' Donuts and Baskin-Robbins franchise business, international operations have been hit by the turmoil in Asia though sales are strong in America.
Allied Domecq shares closed 2p lower at 538p.
- 1 Stamford Hill council removes 'unacceptable' posters telling women which side of the road to walk down
- 2 Kim Kardashian 'nude pictures' leaked on 4chan weeks after Jennifer Lawrence 'The Fappening' scandal
- 3 Scottish referendum 'English question': Tory MPs call on David Cameron to create an English first minister in wake of No vote
- 4 Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
- 5 Free U2 album: How the most generous giveaway in music history turned into a PR disaster
Stamford Hill council removes 'unacceptable' posters telling women which side of the road to walk down
Kim Kardashian 'nude pictures' leaked on 4chan weeks after Jennifer Lawrence 'The Fappening' scandal
Iranian blogger found guilty of insulting Prophet Mohammad on Facebook sentenced to death
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Jennifer Lawrence 'naked sex video' will be leaked next, threatens 4Chan celebrity photo hacker
Scottish independence referendum: A nation divided against itself
Scottish referendum results: Cross-party consensus collapses amid Tory-Labour spat on the 'English question'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Archbishop of Canterbury admits doubts about existence of God
Portuguese academic says British are 'filthy, violent and drunk'
iJobs Money & Business
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
Up to £100k or £450p/d: Saxton Leigh: My client is a leading commodities tradi...
£320 - £330 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
To £75,000 + Pension + Benefits + Bonus: Saxton Leigh: My client is looking f...