Bulmer plunges on new warning

CIDER company HP Bulmer is stripping out a level of middle management and getting rid of its international manager in an attempt to restore its fortunes.

The Herefordshire-based company announced the changes along with a last-minute warning that profits will be lower than analysts' expectations. The news sent the shares down more than 10%.

The market was looking for between £22m and £24m in full-year profits. But Bulmer, which reports on Monday, will manage only £21.1m. Exceptional losses of £12.4m will cut the profits back to £8.7m.

Chief executive Mike Hughes said the company had lost so few kegs of cider though spillage and theft that it was left with too large a provision to put into the profit and loss account. Instead he had decided to book it as an exceptional gain. 'We've robbed ourselves of £1.9m of ( trading) profit,' he said.

Up to 15 senior managers are set to lose their jobs in a restructuring. Hughes is expected to announce further details, including how the group hopes to revive its international fortunes, next week.

The shares fell 34p to 298 1/2p.