Bubbling Barr steeled for bad-weather fallout

SLIGHTLY less Irn-Bru and Tizer was guzzled in the first half of the year, but profits at Glasgow-based AG Barr rose sharply helped by further falls in the cost of sugar and plastic bottles, writes Richard Phillips.

Chairman Robin Barr warned, however, that the current half was likely to suffer from the aftermath of the appalling summer weather.

Turnover during the six weeks following 1 August has shown a decline of 11% compared with the same period a year ago, he said, and it is unlikely the group can recoup these lost sales.

A decline in the value of the pound against other European Union currencies also means a rise in sugar prices is on the cards for the rest of the year.

The market was undismayed and the shares rose 6 1/2p to 391 1/2p.

Barr said he was encouraged by how Russians in Moscow are taking to Irn-Bru which is being made by a start-up company. Recent Russian turmoil makes a nonsense of forecasting prospects but AG Barr has a limited downside as it does not have a stake in the business.

Sales for the six months to 1 August were slightly down at GBP 56.55 million, but profit before tax climbed sharply to GBP 8.15 million from GBP 6.55 million and there is an interim dividend of 7p, up from 4p last time.

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