JD Sport and J Barbour and Sons Financial Management Analysis

Tables of Content

• Executive Summary
• Introduction
• JD Sport and J Barbour &Sons Financial Analysis
  • Profitability Ratios
  • Liquidity Ratios
  • Efficiency Ratios
  • Investor Relation Ratios
• JD Sport’s Cost of Capital
  • Discount Rate
  • Capital Structure
• Purchase Price for JD Sports
• Impact on Financial Statements
• Share Price Movement of JD Sports
• Recommendation
• Appendix
• References

Executive Summary

The report provides brief information regarding the financial position of the JD Sports & J. Barbour and Son. The profitability ratios of the JD Sports organization indicates that in the year 2017 the gross profit margin was 48.9% which shows the increase from the previous years. The profitability position of the organization is good and shows the increase over a period of time. If the profitability ratios of the J. Barbour are analyzed then it can be seen that the profitability position of J. Barbour is way stronger than JD Sports. The efficiency or Asset management ratios of the JD sport show that the company is utilizing its assets efficiently to generate sales. The ratios analysis is reviewed again to analyze the capital structure of the corporation. The company’s assets are more financed through equity than debt which is a good thing. The gearing ratio of the corporation has decreased from the previous years which shows a significant amount of decrease in debt. The acquisition would have the significant impact on the share price. After the acquisition, the prices of shares will increase dramatically however after some period of time the sales will start fluctuating and depend on the performance of the organization and what the investors feel about the acquisition process. It is recommended that the JD Sports should focus on its profitability and increase it if it wants to acquire the business.

Financial Management

Introduction

The report provides brief information regarding the financial position of the JD Sports & J. Barbour and Son. JD Sports want to acquire J. Barbour &Son and for this, the company should have resources so that acquisition can be done effectively. The financial analysis of both companies is performed to know the profitability, efficiency, financial leverage and liquidity of both the corporations. The investor’s relations of both corporations is also analyzed to determine the strength of the corporations. The major parts of the report include financial analysis, cost of capital analysis, price to purchase the organization and recommendation.

JD Sport and J Barbour & Sons Financial Analysis

Profitability Ratios

Profitability Ratios
Ratios Formulas	Gross profit margin = Gross Profit/Revenue	EBITDA margin = EBITDA/Revenue	Operation profit margin = Operation Profit / Revenue	Net profit margin = Net Profit / Revenue
	Gross profit margin, %	EBITDA margin, %	Operation profit margin, %	Net profit margin, %
JD Sports Fashion Plc.	48.9%	12.8%	10.1%	7.5%
J. Barbour & Sons, Limited	52.1%	17.2%	16.0%	13.1%
Sports Direct International Plc. **	41.0%	13.5%	4.3%	7.1%
WH Smith PLC***	59.4%	14.8%	11.5%	9.4%
Average	50.4%	14.6%	10.4%	9.3%
*Source: https://beta.companieshouse.gov.uk/company/00124201/filing-history

 

JD Sports Fashion Plc.	2013	2014	2015	2016	2017
Gross profit margin, %	48.7%	48.5%	48.6%	48.5%	48.9%
EBITDA margin, %	7.1%	8.0%	9.4%	10.5%	12.8%
Operation profit margin, %	4.4%	4.4%	6.1%	7.3%	10.1%
Net profit margin, %	3.1%	3.0%	3.5%	5.4%	7.5%
J. Barbour & Sons, Limited	2013	2014	2016 (16 months)	2017
Gross profit margin, %	55.9%	53.8%	52.2%	52.1%
EBITDA margin, %	20.3%	18.6%	15.1%	17.2%
Operation profit margin, %	19.3%	17.5%	13.8%	16.0%
Net profit margin, %	14.1%	13.6%	9.7%	13.1%

The profitability ratios of the JD Sports organization indicates that in the year 2017 the gross profit margin was 48.9% which shows the increase from the previous years. The profitability position of the organization is good and shows the increase over a period of time. The Net Profit margins of the company in the recent years are 3.5%, 5.4%, and 7.5%. The profitability ratios of the company provides the information regarding how much profit a company is generating in a specific period of time and through profitability ratios it can be said that the company’s financial position is good however the profitability ratios of the corporation are significantly lower than J. Barbour & Sons (Walton & Aerts, 2006).

If the profitability ratios of the J. Barbour are analyzed then it can be seen that the profitability position of J. Barbour is way stronger than JD Sports. The net profit margin of the company in recent years is 13.6%, 9.7% and 13.1% which not only show the significant amount of increase in the profitability but also show the financial edge over JD Sports in terms of profitability. The operating profit margin of JD sports was 10.1% as compared to J. Barbour’s 16%. In short, the profitability position of J. Barbour is way stronger than the JD Sports. Therefore in order to purchase J. Barbour, the organization have to improve its profitability.

Liquidity Ratios

Liquidity Ratios
Ratios Formulas	Current Ratio = Current Assets / Current Liabilities	Gearing = Non-Current Liabilities / Equity + Noncurrent Liabilities	Acid Ratio = Current Assets – Stock / Current Liabilities	Interest coverage = Operating profit / Interest Payable
	Current Ratio	Gearing	Acid Ratio	Interest coverage
JD Sports Fashion Plc.	1.33	14%	0.68	109.39
J .Barbour & Sons, Limited	5.67	7%	4.33	314.88
Sports Direct International plc.*	1.72	27%	0.87	345.24
WH Smith PLC**	0.89	13%	0.34	71.00
Average	2.40	15%	1.55	210.13
*Source: www.sportsdirectplc.com/~/media/Files/S/Sports-Direct/annual-report/Annual%20Report%202017%20-%20v3.pdf
**Source: https://www.whsmithplc.co.uk/docs/21119_WHSmiths_AR17_WEB_2017-10-25-min-compressed.pdf
JD Sports Fashion Plc.	2013	2014	2015	2016	2017
Current Ratio	1.21	1.15	1.22	1.47	1.33
Acid Ratio	0.52	0.50	0.54	0.78	0.68
Interest Coverage Ratio	37.24	33.10	33.01	61.68	109.39
Gearing	18%	17%	16%	14%	14%
J. Barbour & Sons, Limited	2013	2014	2016 (16 months)	2017
Current Ratio	2.72	3.14	4.82	5.67
Acid Ratio	1.91	2.09	3.37	4.33
Interest Coverage Ratio	17.80	15.62	182.54	314.88
Gearing	6%	3%	2%	7%

The liquidity ratios of the JD Sports indicates the corporation has enough cash to pay its short-term obligations. The current ratio in the recent years was 1.22, 1.47 and 1.33 which clearly shows that the company can easily pay the short-term loans. However, the acid test ratio of the corporation is a little bit lower and needs improvement. Another good thing that JD sports liquidity ratios show is that the corporation has not kept excess cash in hand that is a good thing. The company has kept cash by keeping its requirements in mind (Finch, 2010).

            The liquidity position of the J. Barbour is also quite strong because the organization has enough cash to pay the short-term obligation. The current ratio of the corporation in recent years are 3.14, 4.82 and 5.67. The liquidity ratios of the corporation show that they have kept more cash than its requirements. It is recommended that the company should invest the excess cash somewhere to earn the significant amount of return. Keeping excess cash in hand is not an appropriate practice because the cash should be used for such purposes from where the company can earn the profit.

Efficiency Ratios

Asset Management Ratios
Ratios Formulas	Asset Turnover = Revenue / Total Assets	ROCE = Operation profit / Capital employed – Current liabilities	Debtors days = Debtors / Revenue * 365	Creditors days = Creditors / COGS * 365	Days Sales of Inventory = Inventory / COS * 365
	Asset Turnover	ROCE, %	Debtors days	Creditors days	DSI
JD Sports Fashion Plc.	2.02	37.2%	3.48	49.57	104.54
J. Barbour & Sons, Limited	1.30	25%	20.71	49.64	127.63
Sports Direct International plc.*	1.33	9%	44.66	111.50	120.08
WH Smith PLC**	2.53	66%	15.97	169.02	109.28
Average	1.79	34%	21.21	94.93	115.38
*Source: www.sportsdirectplc.com/~/media/Files/S/Sports-Direct/annual-report/Annual%20Report%202017%20-%20v3.pdf
**Source: https://www.whsmithplc.co.uk/docs/21119_WHSmiths_AR17_WEB_2017-10-25-min-compressed.pdf
JD Sports Fashion Plc.	2013	2014	2015	2016	2017
Asset turnover	2.51	2.22	2.23	2.30	2.02
ROCE, %	19.3%	18.8%	26.1%	30.1%	37.2%
Debtors days	3.59	4.35	2.81	2.92	3.48
Creditors days	54.90	68.43	58.10	47.75	49.57
DSI	82.89	99.11	104.93	92.79	104.54
J. Barbour & Sons, Limited	2013	2014	2016 (16 months)	2017
Asset turnover	1.35	1.37	1.80	1.30
ROCE, %	39.0%	33.6%	30.4%	24.8%
Debtors days	37.03	40.18	17.00	20.71
Creditors days	107.21	88.77	46.18	49.64
DSI	167.66	173.93	115.49	127.63

The efficiency or Asset management ratios of the JD sport show that the company is utilizing its assets efficiently to generate sales. The asset turnover ratio of the corporation in 2017 is 2.02. The ROCE ratios also indicating an increase over the period of time. The asset utilization ratios show how efficiently the corporation is managing its assets for generating sales. In the future, the company can boost its sales because it is using its resources effectively and become a major reason for the profitability. The asset utilization and profitability of the firm has the strong relationship. When the organization uses its assets efficiently than it can boost its revenue which ultimately helps the business to expand its business & profitability (Tennent, 2008).

1. Barbour is utilizing its assets but not as much effect as JD Sports. It means that the company in the future can face issues because it is not effectively managing its assets. The asset turnover ratio of the corporation in 2017 is 1.30 which is lower than the JD Sports. If the organization want to boost its sales and profitability in the future it has to increase its asset utilization otherwise it might lose its market share.

Investor Relation Ratios

IR Ratios
Ratios Formulas	ROE=Profit(Loss) for the period / Shareholders Funds	EPS = Net profit / Number of Shares	DPS = Dividends Paid / Number of Shares	P/E = Share Price / EPS
	ROE	EPS	DPS	P/E (price as of 23/02/18)
JD Sports Fashion Plc.	32.40%	0.18	0.01	21.11	1355.37
J. Barbour & Sons, Limited*	21.73%	64.22	n/a	n/a	1076.11
Sports Direct International Plc. **	18.57%	0.39	n/a	9.49	609.58
WH Smith PLC***	62.03%	1.05	0.48	19.67
Average	33.68%	16.46	0.25	16.76
*source: J. Barbour & Sons, Limited, 2017 Annual Report, p.43
** Source: https://financials.morningstar.com/valuation/price-ratio.html?t=SPD&region=gbr&culture=en-US&ownerCountry=USA
*** Source: www.whsmithplc.co.uk/docs/21119_WHSmiths_AR17_WEB_2017-10-25-min-compressed.pdf
JD Sports Fashion Plc.	2013	2014	2015	2016	2017
ROE	16.31%	15.46%	17.77%	25.53%	32.40%
EPS	0.20	0.21	0.27	0.50	0.18
DPS	0.06	0.07	0.07	0.07	0.01
J. Barbour & Sons, Limited	2013	2014	2016 (16 months)	2017
ROE	30.21%	27.03%	21.88%	21.73%
EPS	57.43	60.81	53.19	64.22

 

The relationship with the investors is important because the investors provide funding to the organization and company can achieve its future goals through the investor’s investment. The organizations attract investors by giving them the higher amount of return. JD Sports IR ratios show that the company is providing the high return over the equity. In the year 2017, the ROE of JD sports is 32.40%.  Over the past few years, the ROE has increased which can become a reason for attracting investment in the future. When the investors know that the corporation is providing the huge return over the investment than the relation with investors will strengthen.

1. Barbour is providing the return on equity but over the few years, the company has decreased the amount of return on the equity which might cause some issues with investor relations. The investors want to invest in such corporations from where they can earn a good amount of return. If they are not going to get high returns than they might move toward such corporations which are providing more return on investment. Although the profitability position o the corporation is stronger but if it is going to decrease the amount of return than the investors’ relation might get disturbed (Walton & Aerts, 2006).

JD Sport’s Cost of Capital

Discount Rate

WACC calculation	4.14%
Cost of equity (CAPM)	4.28%				Cost of debt			2.22%
– Rf	1.62%				– Interest coverage ratio			109.39
– Unlevered beta	0.45	Retail General (Damodaran)			– Company default spread			0.60%
– D/E	0.06
– Levered beta	0.47
– ERP	5.65%	Damodaran
E/IC	94%
D/IC	6%

 

                         For finding the discount rate for the acquisition of J. Barbour WACC is evaluated by using the CAPM approach. Through the CAPM approach, the Weighted Average Cost of Capital is 4.14%. Through analyzing the capital structure it is evident that the cost of equity is more than the Cost of Debt. The cost of debt is 2.22% which is lower and it is a good thing for the corporation. The amount of debt should be low because debt has to return. The cost of equity is 4.28% which means that the company’s assets are mostly financed through equity. The ROCE of JD Sports is 37.2% in 2017 which higher than the evaluated WACC. This demonstrates that the capital structure of the corporation does not change quickly and the value of WACC can be used for capital budgeting. The corporation has employed capital efficiently (SINHA, 2012).

Capital Structure

                         The ratios analysis is reviewed again to analyze the capital structure of the corporation. The company’s assets are more financed through equity than debt which is a good thing. The gearing ratio of the corporation has decreased from the previous years which shows a significant amount of decrease in debt. The company’s interest coverage ratio has increased over the past few years which means that the company can easily pay the amount of interest on the debt. The corporation’s capital structure has the low cost which indicates that the company is in the position to perform the acquisition of another corporation.

Purchase Price for JD Sports

J.Barbour & Sons,Limited – Investment value for JD Sports
Assumptions	Growth rate @ CAGR		7.41%
	COS growing to JD’s		51%
	Admin reduced by 30% to		25.90%
	WC needs declining to		4.57%
	2018	2019	2020	2021	2022
Operating profit	50,479	52,090	53,662	57,635	61,902
Tax rate	23%
NOPAT	39,088	40,336	41,553	44,630	47,933
Fixed Assets	12,521	13,147	13,805	14,495	15,220
DA	2,516	2,642	2,774	2,912	3,058
DA/Fixed Assets	1.30%
WC needs	29,029	20,320	17,069	15,682	14,114
Changes in WC	–              293	–         8,709	–         3,251	–         1,387	–          1,568
Capex	3,831	3,268	3,431	3,603	3,783
FCFF for J.Babour	38,066	48,418	44,147	45,326	48,777
FCFF for JD Sports	142,308	100,175	107,598	115,571	124,135
Consolidated FCFF	180,374	148,593	151,745	160,897	172,912
Period	1	2	3	4	5
Discount factor	0.96	0.92	0.88	0.84	0.81
PV FCFF	172,865	136,479	133,572	135,732	139,795
EBITDA 2022	401,384
EV/EBITDA	11.72	Source: https://www.gurufocus.com/term/ev2ebitda/OTCPK:JDSPY/EV-to-EBITDA/JD-Sports-Fashion-PLC
Growth	1%
TV	4,704,215	5,222,931
PV TV	3,803,253	4,222,624
WACC calculation	4.34%
Cost of equity (CAPM)	4.49%				Cost of debt			2.53%
– Rf	1.9265%				– Interest coverage ratio			314.9919
– Unlevered beta	0.55				– Company default spread			0.60%
– D/E	0.06
– Levered beta	0.58
– ERP	4.45%
E/IC	94%
D/IC	6%
Enterprise value	4,521,697	4,941,068
Total debt	33,960	33,960	think on financing the deal ass costs and debt
Cash	247,560	247,560
Debt for JB’s purchase	343,652	343,652
Net debt	–        130,052	–     130,052
Equity value	4,651,749	5,071,120
Price per Share	4.78	5.21	19%	Potential UPSIDE

 

                         In order to acquire the J. Barbour JD Sports will require further financing. As the corporation is the position to take more debt the corporation can take debt in acquiring the corporation.  The DCF model indicates that the investment would be profitable in the future. As the J. Barbour has the strong financial position and the significant amount of resources the acquisition would definitely help the business to expand its services and take benefit from the sources of the corporation. The amount of debt for JB’s purchase is 343652 and EBIT growth rate over the years are 11.72% (Pandey, 2015).

Impact on Financial Statements

Consolidated Income Statement
Turnover	2,378,694	184,311	2,563,005
Cost of Sales	-1,215,053	-88,289	-1,303,342
CoS/Sales	51%	48%	51%
Gross Profit	1,163,641	96,022	1,259,663
GP Margin	49%	52%	49%
Administration Expenses	-919,244	-67,774	-987,018
Adm exp/Sales	-39%	-37%	-39%
Other Operating Income/Costs pre OP	1,815	1,165	2,980
other/sales	0.1%	0	0
Exceptional Items pre OP	-6,419	0	-6,419
Operating Profit	239,793	29,413	269,206
OP Margin	10%	16%	11%
Other Income		0	0
Total Other Income & Int. Received	767	11	778
Exceptional Items		0	0
Profit (Loss) on Sale of Operations		0	0
Costs of Reorganisation		0	0
Profit (Loss) on Disposal		0	0
Other Exceptional Items		0	0
Profit (Loss) before Interest paid	240,560	29,424	269,984
Interest Received	767	11	778
Interest Paid	-2,192	-93	-2,285
Paid to Bank	-1,934	-1	-1,935
Paid on Hire Purchase		0	0
Paid on Leasing	-3	0	-3
Other Interest Paid	-255	-93	-348
Net Interest	-1,425	-83	-1,508
Profit (Loss) before Tax	238,368	29,330	267,698
Taxation	-53,788	-5,239	-59,027
Effective tax rate	-22%	-18%	-22%
Profit (Loss) after Tax	184,580	24,091	208,671
Extraordinary Items		0	0
Minority Interests	-5,666	0	-5,666
Profit (Loss) for Period	178,914	24,091	203,005
Dividends	-14,501	0	-14,501
Retained Profit(Loss)	164,413	24,091	188,504
		0	0
Depreciation	51,394	2,327	53,721
Depreciation Owned Assets	51,110	0	51,110
Depreciation Other Assets		2,315	2,315
Impairment Tangibles	284	0	284
Audit Fee	765	59	824
Non-Audit Fee	111	33	144
Tax Advice	77	13	90
Non-Tax Advisory Services	34	20	54
Other Auditors Services		0	0
Non-Audit Fees paid to Other Auditors		0	0
Total Amortization and Impairment	14,399	12	14,411
Amortisation	7,980	12	7,992
Impairment	6,419	0	6,419
Total Operating Lease Rentals	166,210	8,687	174,897
Hire of Plant & Machinery	3,224	176	3,400
Land & Building or Property Rents & Other	162,986	8,511	171,497
Research & Development		0	0
Foreign Exchange Gains/Losses	3,467	106	3,573
Remuneration	335,773	28,786	364,559
Wages & Salaries	301,137	23,656	324,793
Social Security Costs	29,881	2,130	32,011
Pension Costs	4,755	3,000	7,755
Other Staff Costs		0	0
Directors’ Remuneration	3,750	2,262	6,012
Directors’ Fees	1,167	2,092	3,259
Pension Contribution	32	170	202
Other Emoluments	2,551	0	2,551
Highest Paid Director	2,762	1,029	3,791
EBITDA	305,586	31,740	337,326

 Share Price Movement of JD Sports

 The acquisition would have the significant impact on the share price. After the acquisition, the prices of shares will increase dramatically however after some period of time the sales will start fluctuating and depend on the performance of the organization and what the investors feel about the acquisition process. However, in the long run, the acquisition would increase the share price because due to the expansion of the business the corporation will generate profit that will increase the value of the firm. When the value of the firm increases the share price also increases as a result (Finch, 2010).

Recommendation

                         It is recommended that the JD Sports should focus on its profitability and increase it if it wants to acquire the business. The company has to increase its revenue s that it would have enough resources for the acquisition. Debt is a good option because the company has the ability to pay back the loan.

Appendix

Profit & Loss account	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Turnover	2,378,694	1,821,652	1,522,253	1,330,578	1,258,892	1,059,523	883,669	769,785	670,855	592,240
National Turnover	1,655,537	1,407,866	1,184,966	1,086,335	1,029,801	863,771	801,728	722,221	670,855	592,240
Overseas Turnover	723,157	413,786	337,287	244,243	229,091	195,752	81,941	47,564
Cost of Sales	-1,215,053	-937,431	-782,703	-685,448	-645,404	-538,676	-446,657	-390,248	-340,309	-300,813
Exceptional Items pre GP
Other Income pre GP
Gross Profit	1,163,641	884,221	739,550	645,130	613,488	520,847	437,012	379,537	330,546	291,427
Administration Expenses	-919,244	-726,561	-638,302	-575,832	-554,592	-447,116	-363,546	-319,499	-293,505	-256,898
Other Operating Income/Costs pre OP	1,815	1,242	925	1,593	2,427	2,730	2,177	2,270	1,109	1,086
Exceptional Items pre OP	-6,419	-25,496	-9,527	-11,839	-5,348	-9,685
Operating Profit	239,793	133,406	92,646	59,052	55,975	66,776	75,643	62,308	38,150	35,615
Other Income						1,068	2,823	-473	748	-145
Total Other Income & Int. Received	767	388	657	582	645	1,714	3,441	-88	1,277	152
Exceptional Items
Profit (Loss) on Sale of Operations
Costs of Reorganisation
Profit (Loss) on Disposal
Other Exceptional Items
Profit (Loss) before Interest paid	240,560	133,794	93,303	59,634	56,620	68,490	79,084	62,220	39,427	35,767
Interest Received	767	388	657	582	645	646	618	385	529	297
Interest Paid	-2,192	-2,163	-2,807	-1,784	-1,503	-1,048	-455	-827	-1,210	-764
Paid to Bank	-1,934	-1,908	-2,542	-1,767	-1,367	-905	-380	-511	-1,209	-758
Paid on Hire Purchase									-1	-6
Paid on Leasing	-3	-7	-23	-7	-19	-129
Other Interest Paid	-255	-248	-242	-10	-117	-14	-75	-316
Net Interest	-1,425	-1,775	-2,150	-1,202	-858	-402	163	-442	-681	-467
Profit (Loss) before Tax	238,368	131,631	90,496	57,850	55,117	67,442	78,629	61,393	38,217	35,003
Taxation	-53,788	-31,001	-20,741	-16,364	-13,875	-18,093	-22,762	-18,647	-13,707	-11,416
Profit (Loss) after Tax	184,580	100,630	69,755	41,486	41,242	49,349	55,867	42,746	24,510	23,587
Extraordinary Items			-15,784
Minority Interests	-5,666	-2,996	-1,294	-1,328	-2,456	-2,502	17	154	-131	-38
Profit (Loss) for Period	178,914	97,634	52,677	40,158	38,786	46,847	55,884	42,900	24,379	23,549
Dividends	-14,501	-13,820	-13,260	-12,871	-12,408	-11,338	-9,002	-5,937	-4,392	-3,524
Retained Profit(Loss)	164,413	83,814	39,417	27,287	26,378	35,509	46,882	36,963	19,987	20,025
EBITDA	305,586	192,002	142,943	106,156	88,795	96,034	98,264	82,281	56,974	49,894
EBITDA Margin, %	13%	11%	9%	8%	7%	9%	11%	11%	8%	8%
D&A	65,793	58,596	50,297	47,104	32,820	28,190	19,798	20,446	18,076	14,424
D&A/Fixed assets	14%	21%	18%	17%	13%	12%	13%	15%	16%	14%
Depreciation	51,394	38,692	36,804	32,529	27,707	23,024	18,338	17,067	15,669	14,364
Depreciation Owned Assets	51,110	37,310	35,601	30,743		21,427	18,338	16,660	13,527	11,829
Depreciation Other Assets					26,993				23
Impairment Tangibles	284	1,382	1,203	1,786	714	1,597		407	2,119	2,535
Audit Fee	765	460	463	407	576	513	366	211	164	148
Non-Audit Fee	111	73	83	299	192	260	143	149	95	98
Tax Advice	77	40	45	37	90	160	94	108	69	27
Non-Tax Advisory Services	34	33	38	262	102	100	49	41	26	71
Other Auditors Services
Non-Audit Fees paid to Other Auditors
Total Amortization and Impairment	14,399	19,904	13,493	14,575	5,113	5,166	1,460	3,379	2,407	60
Amortisation	7,980	9,304	8,433	2,736	2,798	2,451	1,460	762	362	60
Impairment	6,419	10,600	5,060	11,839	2,315	2,715		2,617	2,045
Total Operating Lease Rentals	166,210	131,324	125,178	115,821	120,164	94,829	82,348	77,210	72,060	69,342
Hire of Plant & Machinery	3,224	3,102	2,906	2,605	2,760	2,243	1,716	1,459	1,253	923
Land & Building or Property Rents & Other	162,986	128,222	122,272	113,216	117,404	92,586	80,632	75,751	70,807	68,419
Research & Development
Foreign Exchange Gains/Losses	3,467	-6,300	4,698	-6,032	2,633	1,438	-568	572	698	525
Remuneration	335,773	267,994	237,620	213,653	208,702	170,803	133,858	116,283	102,442	89,865
Wages & Salaries	301,137	241,536	214,312	192,490	188,826	155,369	122,946	107,464	95,351	83,890
Social Security Costs	29,881	23,341	20,667	19,175	18,607	14,018	9,711	8,010	6,617	5,601
Pension Costs	4,755	3,117	2,641	1,988	1,269	1,416	1,201	809	474	374
Other Staff Costs
Directors’ Remuneration	3,750	3,598	3,728	4,416	1,894	2,440	2,747	2,411	3,359	5,904
Directors’ Fees	1,167	1,008	1,163	1,365	1,264	1,313	1,235	955	921	843
Pension Contribution	32	26	39	53	53	49	47	44	43	41
Other Emoluments	2,551	2,564	2,526	2,998	577	1,078	1,465	1,412	2,395	5,020
Highest Paid Director	2,762	2,728	1,951	3,137	978	1,393	1,493	1,321	1,578	4,819
EBITDA	305,586	192,002	142,943	106,156	88,795	94,966	95,441	82,754	56,226	50,039
Number of Employees	16,218	12,602	11,198	10,508	10,430	10,626	6,759	6,128	5,737	4,951

 

Balance sheet	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008
Fixed Assets
Tangible Assets	235,762	173,317	147,934	141,574	129,101	119,518	78,120	67,434	62,668	53,622
Land & Buildings	44,993	27,705	20,087	21,080	13,437	12,219	8,783	7,578	6,684	5,710
Freehold Land
Leasehold Land								7,578	6,684	5,710
Fixtures & Fittings	179,775	135,790	111,287	102,682	101,844	81,134	65,774	56,818	52,866	44,725
Plant & Vehicles	238	166	239	381	409	498	192	107	220	230
Plant
Vehicles	238	166	239	381	409	498	192	107	220	230
Other Fixed Assets	10,756	9,656	16,321	17,431	13,411	25,667	3,371	2,931	2,898	2,957
Intangible Assets	190,902	73,611	101,075	104,330	96,024	99,814	58,315	50,121	42,890	41,371
Investments	38,103	33,673	32,402	23,802	20,568	16,975	19,630	17,920	10,669	9,536
Fixed Assets	464,767	280,601	281,411	269,706	245,693	236,307	156,065	135,475	116,227	104,529
Fixed asset turnover	5.12	6.49	5.41	4.93	5.12	4.48	5.66	5.68	5.77	5.67
Current Assets
Stock & W.I.P.	348,007	238,324	225,020	186,116	146,569	130,355	84,490	74,569	58,287	58,669
Stock
W.I.P.
Finished Goods	348,007	238,324	225,020	186,116	146,569	130,355	84,490	74,569	58,287	58,669
DIO	103	92	103	98	82	87	68	69	62	70
Trade Debtors	22,677	14,592	11,719	15,849	12,386	17,730	13,626	10,535	2,503	2,235
Bank & Deposits	247,560	215,996	121,317	76,797	53,484	67,024	90,131	64,524	23,538	11,969
Other Current Assets	95,925	41,783	42,203	51,117	44,375	36,417	23,479	21,122	17,950	13,664
Group Loans (asset)
Directors Loans (asset)
Other Debtors	50,398	11,297	4,465	5,751	6,413	3,804	1,955	2,179	2,550	167
Prepayments	45,527	30,486	37,738	45,366	37,962	32,613	21,524	18,943	15,400	13,497
Deferred Taxation
Investments									2,053
Current Assets	714,169	510,695	400,259	329,879	256,814	251,526	211,726	170,750	104,331	86,537
Current Liabilities
Trade Creditors	-165,003	-122,638	-124,590	-128,510	-97,084	-93,305	-56,297	-52,268	-34,837	-33,818
Short Term Loans & Overdrafts	-31,431	-6,301	-36,713	-30,970	-7,157	-5,547	-2,874	-2,712	-83	-134
Bank Overdrafts	-30,565	-6,191	-36,620	-4,869	-7,036	-4,937	-2,874	-2,712	-83	-134
Group Loans (short t.)
Director Loans (short t.)
Hire Purch. & Leas. (short t.)	-503	-44	-28	-37	-49	-610
Hire Purchase (short t.)
Leasing (short t.)	-503	-44	-28	-37	-49	-610
Other Short Term Loans	-363	-66	-65	-26,064	-72
Total Other Current Liabilities	-338,722	-219,215	-165,445	-126,171	-108,508	-114,983	-87,109	-77,183	-56,490	-57,611
Corporation Tax	-33,648	-15,757	-12,931	-11,596	-8,817	-8,861	-12,370	-10,789	-8,395	-9,147
Dividends
Accruals & Def. Inc. (short t.)
Social Securities & V.A.T.	-58,511	-41,713	-33,272	-23,620	-26,876	-22,939	-18,045	-14,209	-8,674	-10,222
Other Current Liabilities	-246,563	-161,745	-119,242	-90,955	-72,815	-83,183	-56,694	-52,185	-39,421	-38,242
Current Liabilities	-535,156	-348,154	-326,748	-285,651	-212,749	-213,835	-146,280	-132,163	-91,410	-91,563
Net Current Assets (Working Capital)	179,013	162,541	73,511	44,228	44,065	37,691	65,446	38,587	12,921	-5,026
NWC/Sales	8%	9%	5%	3%	4%	4%	7%	5%	2%	-1%
Net Tangible Assets (Liab.)	452,878	369,531	253,847	209,604	193,734	174,184	163,196	123,941	86,258	58,132
Working Capital needs	205,681	130,278	112,149	73,455	61,871	54,780	41,819	32,836	25,953	27,086
	9%	7%	7%	6%	5%	5%	5%	4%	4%	5%
Total Assets	1,178,936	791,296	681,670	599,585	502,507	487,833	367,791	306,225	220,558	191,066
Total Assets less Cur. Liab.	643,780	443,142	354,922	313,934	289,758	273,998	221,511	174,062	129,148	99,503
	2.018
Long Term Liabilities
Long Term Debt	-2,529	-274	-374	-551	-691	-1,182	-1,117	-1,347		-83
Group Loans (long t.)
Director Loans (long t.)
Hire Purch. & Leas. (long t.)	-461	-64	-35	-35	-7	-50
Hire Purchase (long t.)
Leasing (long t.)	-461	-64	-35	-35	-7	-50
Preference Shares
Other Long Term Loans	-2,068	-210	-339	-516	-684	-1,132	-1,117	-1,347		-83
Total Other Long Term Liab.	-53,179	-40,834	-41,733	-34,487	-30,085	-36,149	-28,782	-24,050	-19,690	-11,839
Accruals & Def. Inc. (long t.)
Other Long Term Liab.	-53,179	-40,834	-41,733	-34,487	-30,085	-36,149	-28,782	-24,050	-19,690	-11,839
Provisions for Other Liab.	-9,230	-1,209	-2,824	-6,056	-7,225	-7,419	-6,437	-8,143	-5,689	-4,772
Deferred Tax	-8,192		-1,804	-4,283	-3,852	-1,012		-748	-379	-46
Other Provisions	-1,038	-1,209	-1,020	-1,773	-3,373	-6,407	-6,437	-7,395	-5,310	-4,726
Pension Liabilities
Balance sheet Minorities	-26,592	-18,405	-13,502	-13,074	-13,934	-13,992	-1,085	-1,333	-1,295	-1,182
Long Term Liabilities	-91,530	-60,722	-58,433	-54,168	-51,935	-58,742	-37,421	-34,873	-26,674	-17,876
Net assets	552,250	382,420	296,489	259,766	237,823	215,256	184,090	139,189	102,474	81,627
Shareholders Funds
Issued Capital	2,433	2,433	2,433	2,433	2,433	2,433	2,433	2,433	2,433	2,413
Ordinary Shares
Preference Shares
Other Shares
Total Reserves	549,817	379,987	294,056	257,333	235,390	212,823	181,657	136,756	100,041	79,214
Share Premium Account	11,659	11,659	11,659	11,659	11,659	11,659	11,659	11,659	11,659	10,823
Revaluation Reserves
Profit (Loss) Account	543,268	378,898	297,161	257,744	230,572	207,503	171,916	125,341	88,382	68,391
Other Reserves	-5,110	-10,570	-14,764	-12,070	-6,841	-6,339	-1,918	-244
Shareholders Funds	552,250	382,420	296,489	259,766	237,823	215,256	184,090	139,189	102,474	81,627

References

• Finch, B. (2010). Effective Financial Management. Kogan Page Publishers.
• Pandey, I. (2015). Financial Management. Vikas Publishing House.
• SINHA, G. (2012). FINANCIAL STATEMENT ANALYSIS. PHI Learning Pvt. Ltd.
• Tennent, J. (2008). Guide to Financial Management (illustrated ed.). John Wiley & Sons.
• Walton, P., & Aerts, W. (2006). Global Financial Accounting and Reporting: Principles and Analysis. Cengage Learning EMEA.