The company name is: Hilton Food Group plc
Detailed requirements and marking criteria for Task B2 You are a financial analyst in a consulting firm. You have been assigned to assess the profitability and solvency of a company from the investor perspective using the results obtained in the attached file below. The report with a maximum word limit of 2,000 words (excluding the cover page, content page, and reference list) must be prepared using Microsoft Word and should include, at least, the following elements and contents:
1-Cover page:
• Module code and name.
• Student number.
• Academic year and title of work.
• The name of analysed companies – your chosen company and benchmark company.
2-Content page:
• Proper title and heading with complete page referencing.
3-Introduction to the research:
• The purpose of the report.
• Justification for the selection of companies.
• Method used in generating the report and its limitations.
• Signposting the report.
4-Background, financial results, and key non-financial information:
• Introduction to the chosen company, its business, and its competitors.
• A review of the financial results contained in the most recent annual report and an up-to-date commentary by reference to the most recent announcements and interim reports for the chosen company and its benchmark company.
• Recent difficult situations or controversial issues faced by the chosen company.
• Key non-financial information, such as the appointment of a new director, of the chosen company.
Analysis and interpretation of profitability and solvency ratios:
• Conduct the first level and second level analysis of profitability and solvency through the return on common equity (“ROCE”).
• Summarised results of the ROCE of the chosen company for three most recent financial years and its benchmark company for one most recent financial year.
• Critically evaluate and discuss the ROCE drivers.
5-Summary and conclusion:
• Summary of main findings of previous chapters.
• Conclude the profitability and solvency of your chosen company in relation to the benchmark company and the industry as a whole.
6-References
• Use the Harvard referencing style.
• Complete list of references.
7-Presentation and language (including * above)
• Professional style of format and presentation.
• Professional style of language for report writing.
• Proper citation and referencing.
• Suitable graphs adopted with proper presentation.
Refomulated Consolated BS
| Hilton Food Group plc | |||||
| Reformulated Consolidated Balance Sheets | |||||
| Premier Foods plc | |||||
| 2022 | 2021 | 2020 | 2022 | ||
| Assets | |||||
| Non current assets | |||||
| Property plant and eqipment | 513.49 | 525.98 | 404.8 | 190.9 | |
| Intangible assets | 105.78 | 70.07 | 69.54 | 293.5 | |
| Investment | 5.54 | 12.62 | 11.76 | ||
| Other non current assets | 6.95 | 6.22 | 2.93 | 23.4 | |
| Total | 631.76 | 614.89 | 489.03 | 2302.2 | |
| Current assets | |||||
| Inventories | 156.52 | 116.94 | 91.34 | 78.1 | |
| Trade and other receivables | 230.39 | 199.64 | 214.61 | 80.2 | |
| Cash at Banlk and in Hand | 141.17 | 123.82 | 110.51 | 108 | |
| Prepaid expenses | 5.52 | 11.86 | 91.34 | 16.3 | |
| Other current assets | 0 | 0 | 0 | 2.4 | |
| Total current assets | 533.6 | 452.26 | 507.8 | 231.3 | |
| Total Assets | 1165.36 | 1067.15 | 996.83 | 2533.5 | |
| Current liabilities | |||||
| Borrowings | 239.15 | 46.01 | 73.81 | 137.4 | |
| Other current liabilities | 387.21 | 336.42 | 324.2 | 44.1 | |
| Total liabilies | 626.36 | 382.43 | 398.01 | 258.7 | |
| Non-curent liabilities | |||||
| Borrowings | 228.98 | 445.22 | 308.16 | 337.2 | |
| Provisions | 4.13 | 2.38 | 4.12 | 212.9 | |
| Other Non-Current Liabilities: | 0 | 3.32 | 3.32 | 217.8 | |
| Total | 233.11 | 450.92 | 315.6 | 767.9 | |
| Total liabilities | 859.47 | 833.35 | 713.61 | 1026.6 | |
| Net assets | 305.89 | 233.8 | 283.22 | 1506.9 | |
| Total Equity | |||||
| Common stock | 8.89 | 8.19 | 8.17 | 86.3 | |
| Additional Paid-In Capital | 142.04 | 65.62 | 64.62 | 1.5 | |
| Other reserves | -25.98 | -13.48 | -26.39 | 1076.7 | |
| Retained earnings | 176.45 | 161.61 | 140.19 | 0 | |
| Shareholders funds | 301.4 | 221.94 | 186.23 | 0 | |
| Minority Interests / Other Equity: | 6.55 | 0 | 5.71 | 0 | |
| Total Equity: | 307.95 | 221.94 | 191.94 | 1506.9 | |
Reformulated Consolidated IS
| Hilton Food Group plc | |||||
| Income statement | |||||
| Premier Foods plc | |||||
| 2022 | 2021 | 2020 | 2022 | ||
| Total Revenue | 3,301.97 | 2,774.04 | 1,814.67 | 900.5 | |
| Cost of revenue | 2,935.89 | 2,452.09 | 1,566.71 | 573.4 | |
| Gross profit | 366.08 | 321.95 | 247.96 | 327.1 | |
| Total expenses | 3,239.67 | 27.07 | 1,758.90 | 769.40 | |
| Operating income | 62.30 | 66.87 | 55.77 | 131.10 | |
| Net Interest: | -16.03 | 0.02 | -12.61 | -20.6 | |
| Profit Before Tax: | 47.4 | 54.03 | 43.16 | 102.6 | |
| Profit after tax from continuing operations: | 39.28 | 42.04 | 35.16 | 77.5 | |
| Discounted operations | |||||
| Profit after tax from discounting operations | 0 | 0 | 0 | 0 | |
| net income after taxes | 39.28 | 42.04 | 35.16 | 77.5 | |
| Minority intersts/Other equity | -2.14 | -2.3 | -2.1 | 0 | |
| Attributable to | |||||
| Equity Holders of parent company | 37.14 | 39.74 | 33.06 | 77.5 | |
| Total dividend paid | 0 | 0 | 0 | 0 | |
| Net income before extraordinary items | 0 | 0 | 0 | 0 | |
| Earnings per share | |||||
| Basic | 0.44 | 0.48 | 0.4 | 0.43 | |
| Diluted | 37.14 | 39.74 | 33.06 | 77.07 | |
| Adjusted | 0.04 | 0 | 0 | 0.43 | |
| Dividend per share | 0.3 | 0.26 | 0,21 | 0.088 |
Sheet4
| Hilton Food Group plc | Premier Foods plc | ||||
| Accounting ratios | |||||
| 2022 | 2021 | 2020 | 2019 | ||
| ROCE | 9% | 8% | 7% | 5% | |
| ROA | 3% | 4% | 4% | 3% | |
| Profit margin | 11% | 12% | 14% | 36% | |
| Gross profit margin | 0.11 | 0.12 | 0.14 | 0.36 | |