IRN-BRU is returning to growth according to AG Barr plc, which published its trading update yesterday, causing its share price to shoot up.

The report revealed its before-tax performance is expected to be at the top end of current market despite a challenging summer period, though it will fall short of last year.

The Cumbernauld-based drinks company, which produces and markets some of the UK’s leading drinks brands, released its trading update in respect of the financial year ending 25 January 2020.

Adjusted profit before tax performance is expected to be just ahead of £37 million.

Revenue for the period is expected to be circa £255m which is about 18% down from £279m in 2018.

AG Barr faced a combination of challenging trading conditions during the year, particularly across the summer period.

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Following its 2018 volume-led strategy, across 2019 the company adjusted its promotional and pricing position to align more closely with the market.

While this had an expected impact on overall volume, volume, it has delivered an increase in average realised price.

Commenting on the results, Roger White, chief executive, said: “Our focus remains the delivery of long-term value growth.

“We are taking action to reset our business and we enter the new financial year with confidence and a strong trading plan.”

Recovery plans for drinks brands Rockstar and Rubicon are now being implemented and Irn-Bru has returned to growth in the final quarter.

The report was well-received by investors, with share prices shooting up more than 14% to 623.9p by 8.30am following its publication. The price remained stable for the rest of the trading day.

AG Barr intends to announce its full year financial results on March 24.