DRINKS GROUP C&C saw its share price surge on the back of good news from Britain's budget.
Shares in the stock closed the day more than 4 per cent stronger as fears that chancellor Alistair Darling would massively raise the level of duty on cider to match that on beer proved to be unfounded.
"It was trading in the low €3.90s when the budget kicked off but jumped straight up to around €4.30. It closed at €4.18, up over 4 per cent on around three million shares traded," said one broker.
In his first budget Mr Darling told parliament that beer would rise by 4p a pint, cider by 3p a litre, wine by 14p a bottle and spirits by 55p a bottle, marking the first rise in duties on spirits in more than a decade.
Some industry observers had expected the cider-duty increase to be much more severe, and C&C enjoyed a "relief rally" as the news sunk in, according to a trader.
Last month Labour MP Alan Meale put a petition before parliament that would have tripled taxes on cider to bring them in line with duties on beer. Were this to happen, Goodbody Stockbrokers analyst Liam Igoe said it could have cut C&C's earnings forecasts by one-third if none of the extra duty was passed on to consumers.
