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Shares in C&C Group (CRR) fell more than 8 per cent this morning after the drinks manufacturer cut its 2026 profit forecast, blaming weaker consumer sentiment following November’s Autumn Budget. 

Adjusted operating profit for the year to February is now expected to be in the range of €70-73mn (ÂŁ60.7-63.3mn), well below the company-compiled consensus of €79.4mn. The shortfall largely reflects softer trading in C&C’s distribution business. 

The owner of Bulmers, Tennent’s and Magners said demand from pubs and bars was weaker than expected, while the ongoing shift from drinkers away from wine and spirits towards beer weighed on its product mix.

Trading across the Christmas fortnight met expectations, but the group said the softness in consumer demand has persisted into the new year and is likely to continue for the remainder of the financial year. 

C&C expects 2027 profits to be broadly flat as a result of planned volume reductions in its distribution arm. The company is exiting less profitable lines, but it said it will take time for costs to catch up with lower revenues.

A fuller update on trading and C&C’s future strategic direction will come with full-year results on 19 May.

SSP Group’s (SSPG) revamp appears to be gaining traction, as the Upper Crust owner reported higher sales across all of its core markets during the first quarter.

The FTSE 250 group, which sells food and drink to travellers in airports and railway stations, kept its full year guidance unchanged after posting a total like-for-like sales increase of 5 per cent for the 13 weeks to 31 December. 

While the group’s Asia Pacific business continued its strong run, reporting a 17 per cent increase in sales, all of SSP’s other regions posted growth. Sales in its laggard European business, which posted an operating loss for FY25, were up 1 per cent during the period.

The share price leapt by nearly 25 per cent in December after a better than expected set of final results boosted sentiment around expected earnings growth, and the company kickstarted its ÂŁ100mn share buyback programme.

Babcock (BAB) chief executive David Lockwood is set to retire by the end of this year. He will be replaced by the head of the company’s nuclear business, Harry Holt.

Lockwood and his chief financial officer David Mellors both joined Babcock in late 2000 after previously running competitor Cobham, which was sold to US private equity firm Advent International. They embarked on a turnaround of Babcock, selling off non-core businesses and slashing its debt pile.

A resurgence in the defence sector also helped, and the company’s shares have risen by more than 500 per cent during his tenure.  

Babcock also announced strong third-quarter trading and said it was confident of meeting full-year consensus forecasts for an underlying operating profit of £409mn. This could be beaten if a licensing deal for two of its Arrowhead 140 frigates is finalised by its March year-end. Babcock’s shares dipped by 2 per cent in early trading.