Tennents NI reports strong profits at outset of Covid-19 pandemic
THE Northern Ireland business of drinks firm Tennent's incurred a £3.1 million hit early in the Covid-19 pandemic, according to a new set of accounts filed with Companies House.
The drinks firm entered the crisis in healthy shape, recording a five per cent rise in turnover to £58.7m for the year to February 29 2020.
It meant that even with the £3.1m exceptional Covid-19 charge, sheet linked to anticipated losses at the outset of the pandemic, the C&C owned enterprise managed to increase pre-tax profits almost seven per cent to £6.56m for 2020.
The result was Tennent's NI Ltd was able to declare a final dividend of £4.1m for 2020.
According to the report filed with Companies House, the drinks firm accounted for the Covid-19 pandemic as an adjusting event in year to February 29 2020.
“The company reviewed the recoverability of its debtor book and advances to customers and booked an expected credit loss provision directly associated with Covid-19 of £707,000 and £2,214,000 respectively.
“The company also reviewed the stock balances and in particular stock that was due to expire in the short to medium term and booked a provision of £194,000.”
The 2019/20 financial year also saw a cut in Tennent's administration staff in Northern Ireland from 55 to 38. A slight increase in sales and marketing employees left a total of 93 workers, 11 down on 2018/19.
Sponsorship of the C&C owned enterprise spending was also down last year, dropping from £955,000 in 2019 to £795,000 in 2020. Tennent's NI increased its spending on marketing by £40,000 during the same period.