Question 2
Detailed below is the summary financial information for Britvic Plc for the five years ending 2 October 2016 published on the LondonStock Exchange Website1. Britvic Plc is listed in the Beverages sector and produces a range of branded soft drinks that are supplied to restaurants, pubs, hotels, shops and supermarkets across the UK and in a range of countries around the world.
Requirements:
a) You are required to use the information providedto undertake a review of Britvic Plc’s performance in recent years. Within this you are asked to calculate and analyse appropriate financial ratios using the information provided below. (20 marks)
b) Identify two stakeholders that would be interested in the financial results of Britvic Plc and discuss how they would perceive how the company has performed in recent yearsand what otherinformation they mightwant to help them come to a judgement aboutthis. (9 marks)
c) Critically analysethe use of ratio analysisas a tool to evaluatethe performance of a company? (6 marks)
Income Statement (£ m)
30-Sep-1229
-Sep-1328
-Sep-1427
-Sep-1502
-Oct-16
Revenue
1256.40
1321.90
1344.40
1300.10
1431.30
Operating
Profit/(Loss)
107.90
108.80
145.30
156.60
176.40
Net Interest
28.30
26.90
25.30
22.20
22.50
Profit Before Tax
77.50
82.60
120.10
137.60
151.90
Profit After Tax
57.40
61.90
89.70
103.80
114.50
Attributable to:
Equity Holders of Parent Company 57.40
61.90
89.70
103.80
114.50
