C&C Group, the Irish maker of Magners cider, yesterday played down bid speculation and insisted it had a future as an independent company.

Shares of the group, which also owns Tullamore Dew Irish whiskey, collapsed after two profit warnings over the summer, and it has been widely touted as a bid target. But Maurice Pratt, C&C’s chief executive, said: “We believe we can achieve our objectives as an independent company.”

The impact of the dire summer weather on sales of its over-ice cider, coupled with competition from Scottish & Newcastle’s Bulmers Original brand, were reflected in a 33 per cent decline in first-half operating profits to €67.9 million (£47 million).

Sales were flat at €375.6 million, as branded cider volumes fell 1 per cent. Magners volumes in Britain rose 2 per cent, while in Ireland - where it owns the Bulmers name – they fell 7 per cent.

C&C, which is maintaining this year’s dividends, said it expected to see a “high single-digit” decline in cider sales and loss of market share in Britain in the second half, although cost-cutting would boost margins.

Mr Pratt insisted that premium cider served over ice was now “firmly established” among drinkers, although much work needed to be done to protect its position. He said he would look at the high price charged to pubs for Magners compared with Bulmers.

The company recently cut the amount it is spending on expanding its cider plant in Clonmel from €200 million to €115 million. Further cost-cut-ting and restructuring will be revealed in November, leading to further job losses and a hefty exceptional charge against full-year profits.

Mr Pratt said test-marketing of Magners in Spain and Germany would continue, although securing decent distribution was proving a challenge.

Davy, the Irish stockbroker, cut its full-year operating profit forecast by €7 million to €131 million. The shares, which peaked at €12.50 in December, fell by €0.68 to €5.34.

The company said it was reviewing the amount of cash to be returned to shareholders following the sale of its soft drinks arm.

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