Matthew Clark Bibendum pays off £160m debts

26-Oct-2018 - Last updated on 27-Apr-2021 at 12:05 GMT

C&C Group says it has paid off £160m in debts owed by the Matthew Clark Bibendum group since it bought the troubled drinks supplier out of administration in April.

Bibendum Wines, Matthew Clark and several subsidiary brands were acquired by C&C after their former parent company Conviviality collapsed after uncovering a £30m unpaid tax bill.

In its latest financial results C&C , which also owns Magners cider, says its “absolute focus has been the stabilisation of the business” following the sale.

By the end of September it settled £129m owed to suppliers, paid £31m of owed taxes and collected £146m due from customers.

“We have a degree of momentum in our core business and recognise the criticality of Christmas trading for Mathew Clark and Bibendum,” says C&C Group.

“We are very pleased with the way this business is responding following a very difficult trading period earlier in the year, with operational KPI’s now trending satisfactorily in the circumstances.

“That said, it will only be once the business has proven itself through the important Christmas trading cycle that we can be confident that it has been restored to health.”

C&C reported total sales of £744.17 with adjusted EBITDA of £58.74 in the six months to 31 August 2018.

Operating profit was £51.8m, a 16% rise of which £5.4m was down to the acquisition of Matthew Clark and Bibendum.