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BSM Financial Accounting Assignment

Business report for a potential individual investor analysing Ted Bakers performance for the year ended 31 anuary !"13 and its financial position as at that date#

Executive Summary This report provides an analysis and evaluation of the current and prospective profitability, liquidity and financial stability of Ted Baker plc, one of the fastest growing leading lifestyle brands in UK. Method of analysis includes co parative inco e state ent analysis, balance sheet analysis, and cash flow analysis. !urther ore this report is going to analyse and evaluate the Ted Baker plc, by providing the ost i portant ratios such as liquidity ratios, perfor ance ratios, investor ratios, lending ratios, efficiency ratios and interpretations to the and also by co paring their perfor ance with the co petitor"s !rench connection and super group over the last # years. $esults of data analysed shows that co pany is in the e%pansion state and using ore of the profits and cash needed to finance new assets such as opening of new stores internationally and once these assets reach their full operational activities liquidity and dividend yield of the co pany will auto atically beco e good. Moreover return on capital e ployed and return on equity has re ained stable though liabilities and equity increased over period depicting additional finance is invested properly. Therefore reco ' ' endations discussed includes&'

(%isting shareholders to hold the shares of the co pany and, )otential investors should purchase the shares of Ted Baker since the return of the co pany is e%pected to be high in the nearest future. *t"s a good invest ent for those looking for long ter benefits rather than the short ter .

Table of Contents 1. Introduction.5 ,., *ndustry average and co petitor-----------------.. . # ,.2 .ggressive e%pansion, fast growth and risk----------.---.. # 2. Financial Overvie .... ! 2., /o parative *nco e 0tate ent .nalysis------------.--..1 2.2 /o parative Balance 0heet .nalysis----------------.2 2.+ /o parative /ash flow .nalysis------------------2 2.3 !inancial $atio .nalysis------------------.---4 ". Conclusions and #ecommendation for Investment....1! #eferences...1$ %&&endix.1'

1. Introduction (stablished in ,544 as a specialist for shirting, but now Ted Baker )6/ 7Ted Baker, 28,+9 stands as a designer label for clothing. *t"s one of the fastest growing leading lifestyle brands in UK. 7!a e, 28,+9 *t designs and undertakes the wholesale and retail sale of enswear, wo enswear, children"s wear and accessories. :ow it is one of the global lifestyle brands that offer a wide range of fashion dress collections including fragrance, endurance, skin wear, footwear, eyewear and watches. 7Ted Baker, 28,+; !a e, 28,+9. *t offers products under the brand na e Ted Baker. *ts operations range across (urope, the U0, .sia, Middle (ast and .ustralia. Ted Baker is headquartered in 6ondon, the UK. 7Ted Baker, 28,+9. The co pany"s arketing strategy has not changed since its inception and it still by word of outh and is one of the only brands that have established itself as an international designer brand without advertising. 7Ted Baker, 28,+9 ,., *ndustry and co petitors Ted Baker plc operates in apparel'te%tile industry and this industry has an average arket capitali<ation of 5B. The biggest co petitors of Ted Baker in this industry are 0uper group and !rench /onnection. 7!a e, 28,+; =ahoo !inance, 28,39 ,.2 .ggressive e%pansion, fast growth and risk. The ain the e of Ted Baker is that they see the new arkets as potential growth opportunity and look for aggressive e%pansion of the brand in the new international arkets and have been quite successful till now with sales up by ,5.3> with ,1> increase in retail area as co pared to previous year i.e. 28,2 7Ted Baker, 28,+9. *t is quite possible that if the e%pansion is not well planned and channeli<ed, the business could be riskier as opening of store and e%panding the business require huge invest ent.

2. Financial Overvie Key !inancials 7*n ?B) as of 8,@+,@28,+9 Income Statement $evenue :et *nco e ()0 (alance s)eet Total assets Total liabilities 0hareholder"s (quity Total assets per share :et assets per share Cas) Flo s /ash fro operations /ash fro *nvesting /ash fro financing 2#3 22 8.#, ,13 11 55 +.41 2.+2 ,2.+ ',5.2 ',8

2.1 Com&arative Income Statement analysis The ain function of the inco e is to outline the fir "s revenue over a particular ti e fra e. *t offer"s ore than the co pany"s return. To potential investor, it provides snapshot of anage ent success or failure in controlling e%penses, anaging inco e and the ta%es paid. 7Kennon A 0alvo A Koch, 28819 The co pany"s revenue increased by ,4.8,> to B2#3.# 728,2& B2,#.1 9 whereas cost of sales increased only by ,3.22 > resulting in increase of gross profit by 28.81>. The increase in gross profit is so ewhat a good sign for the co pany as the co pany has anaged to keep a control on the e%penses ainly by lowering pro otional activities in the arket co paring to last year. 7Ted Baker, 28,+9 The operating cost of the co pany increased by 28.2> with distribution cost increasing to B,8,.3 728,2& B42.3 9 an increase of 2+.82> and ad inistration e%penses increasing to B+2.54 7 28,2 & B25.1 9 an increase of ,,.24 >. This increase in e%penses in pri arily driven by the e%pansion into new international arkets that requires additional distribution and infrastructure cost to support the e%pansion. The finance e%penses rose by 251.,#> in 28,+ as co pared to previous year. The finance e%penses constituted both the interest payable e%penses and foreign e%change loss. Bank overdraft was the reason for the increase in interest payable e%penses that rose by ,52.#2> 728,+& B,5.4 ; 28,2& B1.4 9. Bank overdraft occurs when the co pany borrowing e%ceeds the actual a ount available in cash in the bank and for which they charged interest fro the co pany. Cowever, by keeping in control the other e%penses 7incl. of ta%9, the co pany anaged to get B2,.1 728,2& B,2.# 9 profit for the year 28,+, an increase of 2+.8,> that is the positive sign for the co pany. 7.ppendi%& Table 29

2.2 Com&arative (alance S)eet analysis The balance sheet gives an understanding of fir "s assets, liabilities and shareholders equity. *t gives the investors an idea of the co pany"s financial position and provides a snapshot on how the co pany is able to balance its debts vs. their assets. 7Business Dictionary, 28,39 Though Ted Baker"s current assets grew by 22.+4> 728,+& B,,2.+4 ; 28,2& B5,.4+ 9 but this growth is far less than the growth in fir "s current liabilities which grew at an alar ing rate of 38.3+ >. This depicts the downfall in fir "s ability to pay the short ter debts with the current assets in hand, resulting in downgrading of the liquidity position of the co pany and if current liabilities continue to rise at such a rate, there is a chance of co pany beco ing bankrupt. Cowever the total assets of the fir grew by 2+.2+ > to B,13.1 728,2& B,++.85 9 with 21.23> increase in fi%ed assets 728,+& B#2.24 ; 28,2& B3,.2# 9. *t eans that co pany is in e%pansion ode and that"s the reason it is investing ore and ore to reap the future benefits. Moreover the total shareholder equity rose by ,1.85> to B54.45 728,2& B4#.,4 9 ainly due to rise in earnings retained by the fir that a ounted to B42.2, as co pared to that of B23.8# in 28,2. 7.ppendi%& Table ,9

2." Com&arative Cas) Flo analysis The state ent of cash flows gives an idea of cash a co pany generates and spends on operating, financing and investing activities. The net decrease in cash re ains the sa e for year 28,+ at B,,.5 as co pared to year 28,2. . net increase in cash generated fro operating activities of B1.2 7#+.4>9 was offset by increase in financing and investing activities depicting that co pany is in e%pansion state and is using the cash for further invest ents needed to e%pand their business. 7.ppendi%& Table +9

2.*

Financial #atio %nalysis ,. 6iquidity $atios *t is the ability of the co pany to pay its short ter liabilities or debts. Ee have two ratios current and acid test ratio that deter ines the liquidity of the co pany. The current ratio is a reflection of the financial strength. *t"s the nu ber of ti es a co pany"s current assets e%ceeds its current liabilities. Cere the for ula to co pute /urrent ratio& Current ratio + Total Current %ssets, Total Current -iabilities !ro the balance sheet, Current ratio of t)e Ted (a.er in 2/1" is 0112"'1,0!52'* + 1.$2 This depicts the current liabilities are covered by current assets ,.22 ti es. *n general the good current ratio is 2&,. The current ratio of the co pany is continuously declining fro 2.+1 in 28,8 to ,.22 in 28,+. 7Table 39 The ain reason is that the current liability is increasing 738.3+>9 at al ost twice the rate of the increase in current assets 722.+4>9. 7.ppendi%& Table ,9 This depicts the downfall in fir "s ability to pay the short ter debts with the current assets in hand, resulting in downgrading of the liquidity position of the co pany.

C urrent Ratio
3.5 3 2.5 2 1.5 1 0.5 0 2008 2009 2010 2011 Year 2012 2013 2014 Ted Baker Plc French C onncection Group Plc S uperGroup Plc

Source& !a e, 28,+; .ppendi%& Table 3 The $uick ratio also known as Facid test ratioG. The reason this ratio is known as FquickG is that it takes into consideration co pany"s ost liquid assets and co pares it with the current liabilities. *t tests whether the business can eet its obligations in case of adverse situation. !or ula for quick ratio is& Huick $atio I 7Total /urrent .ssets' Total *nventory9@Total /urrent 6iabilities !ro the balance sheet, Huick ratio for =ear 28,+ is I 7,,2+45'1212+9@1#243 I 8.14 The quick ratio of Ted Baker is continually declining fro ,.,5 in 28,8 to 8.14 in 28,+. 7.ppendi%& Table 39*ts depicts that the liquid cash available with the co pany is declining as it is used by the co pany for the future invest ent in

infrastructure and oreover the co pany has used the cash to pay off the long ter debt that depicts fro the balance sheet as there is 1#> reduction in long ter liability 7.ppendi%& Table ,9 as co pared to year 28,2. *t ay also depict that inventories are not beco ing useful as it is not able to convert into cash.

Acid T est Ratio

5 4 3 2 1 0 2009 2010 2011 2012 2013 French C onncection Group Plc Ted Baker Plc S uperGroup Plc

Source& !a e, 28,+; .ppendi%& Table 3 . ong its co petitors the Ted Baker is the least liquid and 0uper group being the ost liquid co pany with three ti es the current assets in hand to cover the current liabilities aking it the ost financially stable co pany a ong all three.

2. (fficiency $atios The efficiency ratios are basically used to assess how well the ite s of assets and liabilities are utilised and anaged. 7?owthorpe, 28,,9 ' *nventory turnover days

The inventory turnover day is the nu ber of days it takes the co pany to turnover 7sell9 the inventory.

Inventory T urnover Days

120 100 80 T ed Baker Plc F rench C onncection G roup Plc S uperG roup Plc

s y a D

0 40 20 0 2008 2009 2010 2011 2012 2013 2014 Year

Source& !a e, 28,+; .ppendi%& Table 3 The lower the days, the ore efficient utili<ation of inventory is. The inventory turnover day for the Ted Baker is continuously rising fro 23.13 in 28,8 to 52.82

in 28,+. 7.ppendi%& Table 39 This de and and e%cess inventory. '

ight be the result of supply e%ceeding the

Trade receivables turnover 7days9

*t easures the nu ber of days the accounts receivables are outstanding during a particular ti e period. !or the co pany the debtor collection days for 28,+ are 24.8, days. *t is a good sign for the co pany as the debtor collection days decreased fro 2885 when it took +5.2# days in order to convert credit sales into cash and thereby reducing the liability for risky accounts receivable. 7.ppendi%& Table 39

T rade Receivables T urnover

50 40 Ted Baker Plc French C onncection G roup Plc S uperG roup Plc

s y a D

30 20 10 0 2008 2009 2010 2011 2012 2013 2014 Year

Source& !a e, 28,+; .ppendi%& Table 3 ' Trade payables turnover 7days9

*t easures the nu ber of days the accounts payable are outstanding. *t is i portant as to anage the cash the co pany needs to ake sure they have enough cash to run the business and keep the suppliers paid on ti e. *f the business gives cash too fast, it ight result in cash shortage and if they delay it, they ight loose the suppliers. /reditor pay ent days of Ted Baker for 28,+ are +,.2 days. 7.ppendi%& Table 39 *f we co pare it with the previous years, it"s very fluctuating and ight be due to the result of the co pany"s invest ent in the inventories resulting in shortage of cash and thereby taking ore ti e to pay off their suppliers. Trade payable turnover days for its co petitors are decreasing due to the fact that they have less receivables turnover days as co pared to Ted Baker thereby getting cash earlier than Ted Baker and hence allowing the to pay earlier to their suppliers.
T rade P ayablesT urnover
50 40 T ed B aker P lc F r ench C onncection G r oup P lc S uper G r oup P lc 2009 2010 2011 Y ea r 2012 2013 2014

s y a D

30 20 10 0 2008

Source& !a e, 28,+; .ppendi%& Table 3 ,8

+. )erfor ance $atios *t is used to assess the relative success or failure of the business perfor ance. 7?owthorpe, 28,,9. *t also easures the ability of the co pany to use its capital or assets to generate profits. ' ?ross profit argin

?)M I 7$evenue J /ost of 0ales9@ $evenue K,88 The gross profit argin for Ted Baker is continuously rising fro #4.#3> in 2885 to 12.+4> in 28,+ 7Table 39 and has the highest profit argin a ong its co petitors. Cigher ?ross )rofit Margin indicates co bination of higher product pricing and lower product costs. Cigher ?)M of Ted Baker a ong its co petitors indicates that it has the co petitive advantage in the industry.
G ros sP rofit Marg in
!0 0

G % P

50 40 30 20 10 0 2009 2010 2011 2012 2013

T ed B a ker P lc F r ench C onncection G r oup P lc S uper G r oup P lc

Source& !a e, 28,+; .ppendi%& Table 3 ' $eturn on /apital ( ployed7$L/(9

*t is used to assess the perfor ance of the business and looks at the level of profit generated co pared to the a ount of capital invested in the business. $L/( I 7)rofit before finance costs and ta%9@ 7Total equity M 6ong ter borrowings9 Between 2885 and 28,,, the $L/( increased steadily fro 24.+2 to +,.2+, before felling down to 24.8, in 28,2 and then increasing steadily to 25., in 28,+. 7Table 39 Lverall $L/( for Ted Baker is stable. This stability is attractive for the investors looking for long ter perspective who base their return on high dividend yields rather than increasing capital value. *n addition, $L/( has re ained stable though liabilities and equity has increased over the period of ti e depicting that additional finance is invested properly in revenue generating assets to aintain this stable return.

,,

R eturn on C a ital E ! loyed

40 30 T ed B aker P lc

% E C O R

20 10 0 "10 "20 2009 2010 2011 2012 2013 F rench C onncection G roup P lc S uperG roup P lc

Source& !a e, 28,+; .ppendi%& Table 3 ' :et )rofit Margin

:et )rofit argin indicates how well the co pany is able to handle its selling strategies and cost anage ent. :et )rofit argin I :et )rofit@ $evenue K,88

.s revenue increase the cost also tends to increase and the relative change deter ines whether the net profit argin will increase or decrease. 0eeing the last # year trend, the :et )rofit Margin has been stable for the Ted Baker. *t"s not always good to co pare the financial strength of the co pany based on :et profit, because there ight be the case of long ter loan taken by the co pany to increase the production capacity.

"et Profit Margin

40 20 Ted Baker Plc French Conncection Group Plc

% P "

0 "20 2009 2010 2011 2012 2013

Source& !a e, 28,+; .ppendi%& Table 3 ' $eturn on (quity

*t indicates how uch the profit is attributable to shareholders after all interest and ta%ation obligations are et. $eturn on (quity 7$L(9 I )rofit after ta%@Total (quity $L( for Ted Baker has been stable over the # years with stably increasing fro 28.2 in 2885 to 22.2+ in 28,, before falling down to 28.1, in 28,2 and then increasing to 2,.43 in 28,+. 7Table 39 Lverall the $L( is stable as co pared to its co petitors and depicts that it"s good to go for long ter invest ent with the stable return.

,2

Return on E #uity
0 50 40 30 T ed Baker Plc F rench C onncection G roup Plc S uperG roup Plc

% E O R

20 10 0 2008 2009 2010 2011 2012 2013 2014 "10 "20 Year

Source& !a e, 28,+; .ppendi%& Table 3 3. 6ending $atios This ratio deter ines the financial leverage of the co pany and indicates what proportion of the debt and equity a co pany uses to finance its assets. *n this we have two ratios na ely gearing ratio and interest cover. The gearing ratio e%presses the relationship between financing through equity and financing through long ter loans. ?earing ratio I Debt@ (quity The gearing ratio for Ted baker in 28,+ is 28.#5 and is continuously rising since 2885 when it was 8.42 and is very uch higher when co pared to co petitor !rench connection which has gearing ratio of #.23 and 0uper group with gearing ratio of ,3.14. 7Table 39 This suggests that Ted Baker had ore debt 7creditors9 financing than equity 7shareholders9 financing. Ted Baker"s approach by being ore heavily financed through debt than equity ight be in atte pt to keep earnings per share at an increased level. Moreover the high gearing is associated with financing of new assets such as opening of new stores to e%pand internationally and once these assets reach their full operational capacity, the gearing ratio will auto atically co e down.
G earing
80 !0 0 50 40 30 20 10 0 2008

T ed B aker P lc F rench C onncection G roup P lc S uperG roup P lc 2009 2010 2011 2012 2013 2014

A$is T itle

Source& !a e, 28,+; .ppendi%& Table 3 The interests cover on the other hand indicates how safe the annual Ninterest pay ents" are in relation to the profit. The interest cover for Ted Baker is continuously declining fro 28,, when it was 282.5 to +1., in 28,+. 7Table 39 The drop in interest cover is tre endous. *t ,+

reflects the debt burden of the co pany due to ore financing activities to e%pand their business globally and once these assets reach their full operational activities, the debt burden will be lessened and interest cover will rise auto atically.

Interest C over
250 200 150 T ed Baker Plc F rench C onncection G roup Plc S uperG roup Plc

s i T f o r e b ! u "

100 50 0 2008 2009 2010 2011 2012 2013 2014 Y ear

Source& !a e, 28,+; .ppendi%& Table 3 #. *nvestor $atios These ratios are used to assess various ite s of particular interest to investors. Dividend is actually the distribution of profits to shareholders. *f the co pany earns profit, it can either re'invest in the business or distribute it to the shareholders. *t"s usually the fi%ed a ount per share and shareholders receive the a ount depending upon the nu ber of shares they hold. ' Dividend yield *t is used to calculate earning on shares considering only the returns in for total dividends declared by the co pany. Dividend =ield I 7Dividend per share@ 0hare )rice9K,88> Dividend =ield for Ted Baker is continuously declining fro 3.24 in 2885 to 2.2, in 28,+ 7Table 39 though it"s still higher than the industry value of ,.,> 7=ahoo !inance, 28,39. The continuous fall in dividend yield indicates is associated with the continuous increase in share price. The low dividend yield is due to the fact that co pany is using ore percentage of its profit to e%pand their business instead of paying out profits as dividends. They have higher share price as their future growth potential is incorporated into the share price by arket.
Dividend Y ield
5

of

4 3 2 1 0 2008 2009 2010 2011 Y ear 2012 2013 2014

T ed B aker P lc F rench C onncection G roup P lc S uperG roup P lc

Source& !a e, 28,+; .ppendi%& Table 3

,3

'

()0

*t is the a ount that is theoretically available per share. (arning per share I )rofit after ta%@:u ber of shares The ()0 of Ted Baker is continuously increasing fro 8.+ in 2885 to 8.#, in 28,+. 7Table 39 ()0 is a very i portant figure that reveals the financial health of the co pany and increasing ()0 is a good sign for the co pany. *t increases with the increase in net profit. *t eans the co pany is investing properly in the revenue generating assets increasing the net profit and hence the ()0 and it"s the best a ong the co petitors with steady increase over the years.
E arningP er % &are
1

d n u o P

0.8 0. 0.4 0.2 0 2008 2009 2010 2011 Y ea r 2012 2013 2014 T ed B a ker P lc F r ench C onncection G r oup P lc S uper G r oup P lc

Source& !a e, 28,+; .ppendi%& Table 3 ' )( ratio arket is willing to pay for the earnings of the fir .

*t e%presses what

)rice@ (arning $atio 7)@(9 I )rice of share@ (arning per share The )( ratio though is continuously rising fro ,,.1 in 2885 to 2+.1 in 28,+ 7Table 39 but is still far less than the industry bench ark of +,.+ 7=ahoo !inance, 28,39. The increase in )( ratio suggests that people are willing to pay higher price of the stock in the anticipation of the fir "s future perfor ance.

P ER atio
50 40 30 20 10 0 2008 2009 2010 2011 Y ear 2012 2013 2014 T ed B aker P lc F r ench C onncection G r oup P lc S uperG roup P lc

Source& !a e, 28,+; .ppendi%& Table 3

,#

'

Market /apitali<ation

*t is not the ratio but is an i portant piece of infor ation for future investors as it gives the overall arket view of the current value of the co pany. Market /apitali<ation I /urrent share price K :u ber of shares in issue The arket capitali<ation is continuously increasing fro B,3# in 2885 to B#,+ in 28,+ 7Table 39 due the increase in share price since ost of the net inco e is retained by the co pany to re'invest eans the co pany is likely to grow and investors can e%pect ore inco e in the future resulting in increase in share price and hence the arket cap.

Mar'et Ca italisation
1800 1 00 1400 1200 1000 800 00 400 200 0 2009 2010 2011 2012 2013 S uperGroup Plc French Conncection Group Plc Ted Baker Plc

".

.fter all analysis and evaluation of the current and prospective profitability, liquidity and financial stability of Ted Baker plc, it see s clear that Ted Baker is in the e%pansion ode and using ost of the current assets to invest in e%panding the business globally and oreover they are retaining the a%i u share of the profit in order to reinvest in the business because of which they have low dividend yield. 0o the investors looking for benefits in short ter will not benefit fro the invest ent. Moreover these assets will take ti e to beco e fully operational and only the investors looking for long ter perspective can get the a%i u benefit by investing in Ted Baker.

s d u P n o l i M

Source& !a e, 28,+; .ppendi%& Table 3

Conclusion and #ecommendation for Investment

,1

#eferences Business Dictionary, 28,3. .ccessed fro Owww.businessdictionary.co @definition@balance'sheet.ht lP Date Q,2.82.28,3R !.M(, 28,+. Company report: Ted Baker Plc (UK) Limited QonlineR. UK& Qviewed ,2 !eb 28,3R. .vailable fro & !a e !.M(, 28,+. Company report: French Connection Group Plc (UK) Limited QonlineR. UK& Qviewed ,2 !eb 28,3R. .vailable fro & !a e !.M(, 28,+. Company report: Super Group Plc (UK) Limited QonlineR. UK& Qviewed ,2 !eb 28,3R. .vailable fro & !a e ?owthorpe, /. 728,,9. Business .ccounting and !inance. +rd (dition. /engage Soshua Kennon, Debra De0alvo, (dward T.Koch, 2881. The /o plete *diot"s ?uide to *nvesting.+rd (dition. )enguin ?roup 7U0.9 *nc, :ew =ork. Ted Baker. 728,+9. .nnual $eport 28,+, Ted Baker )lc. .ccessed fro Owww.tedbakerplc.co P Date Q,,.82.,3R =ahoo !inance, 28,3. *ndustry $eview' Te%tile .pparel /lothing. .ccessed fro http&@@bi<.yahoo.co @ic@+28.ht lP Date Q,#.82.,3R O

,2

%&&endix Table 1 (alance S)eet 2 2ear Com&arison 2/1" Fixed %ssets Tangible assets 6and A Buildings !reehold 6and 6easehold 6and !i%tures A !ittings )lant A Tehicles )lant Tehicles Lther !i%ed .ssets *ntangible .ssets *nvest ents Fixed %ssets Current %ssets 0tock and E.*.) 0tock E.*.) !inished ?oods Trade Debtors Bank A Deposits Lther /urrent .ssets ?roup 6oans Directors 6oans Lther Debtors )repay ents Deferred ta%ation *nvest ents Current %ssets 3#3,2 +,1#4 8 +,1#4 8 2 8 2 ,+2#2 54+ #458 #224# 1212+ 3822 5+# 122,, ,5#25 542+ ,3#5# 8 8 8 ,3#5# 8 215 ,,2+45 2/12 +#148 22552 8 22552 8 ,8 8 ,8 ,212+ 514 3182 3,2## #,422 2#32 218 34#1# ,5233 4#18 ,843+ 8 8 8 ,843+ 8 4,4 5,4+2 3ariance 4 22.24> +2.11> 8> +2.11> 8> '48> 8> '48> 4.#,> ,.##> 22.4#> 21.23> +8.31> #4.,,> 2+.8+> 25.,+> ',.85> ,3.2#> +3.18> 8> 8> 8> 8> '#.55> 22.+4>

Current -iabilities Trade /reditors '22852 0hort Ter 6oans ',5412 A Lverdrafts Bank Lverdrafts ',5412 ?roup 6oans 8 Director 6oans 8 Total Lther /urrent '2++2# 6iabilities /orporation ta% '3+18

',#5,8 '1258 '1258 8 8 '2+242 '++#+ ,4

+4.45> ,52.#2> ,52.#2> 8> 8> ',.53> +8.8+>

Dividends .ccruals A Def 0ocial 0ecurities A T.T Lther /urrent 6iabilities Current -iabilities :et /urrent .ssets :et Tangible .ssets Eorking /apital Total .ssets Total .ssets less /urrent 6iabilities -on5 Term -iabilities 6et %ssets Total S)are)older E7uity Table 2

8 ',+,,, '##4# '215 '1#243 32,8# 54382 32,8# ,13123 55+58 '352 5445+ 5445+

8 ',#218 '3,,, ',81+ ' 31342 3#+#8 4#1+2 3#+#8 ,++852 4118# ',328 4#,4# 4#,4#

8> ',3.84> +#.41> '23.15> 38.3+> +.42> ,3.5,> +.42> 2+.2+> ,3.21> '1#> ,1.85> ,1.85>

Income Statement8 %nnual for 2 2ears $evenue /ost of sales 9ross &rofit Distribution /osts .d inistrative (%penses (%ceptional /osts 6icence *nco e Lther Lperating *nco e O&eratin5 :rofit !inance *nco e !inance (%penses 0hare of )rofit of Sointly controlled entity, net of ta% :rofit before tax *nco e ta% e%pense 2/1" 2#3311 75#2389 15'$2! 7,8,+#29 7+25439 721,39 2#85 2+3 2151* +3 74239 ,54 2'122 72+2#9 2/12 2,#12# 74+3,59 1"22/! 742+#49 7251389 724,39 12++ ,32 2*2!1 3# 72849 ,35 2*255 711549 ,5 3ariance 4 ,4.8,> ,3.22> 28.81> 2+.82> ,,.24> '2.,,> ,,.#+> 13.25> 2,.1,> '23.33> 251.,#> +2.45> ,5.23> 5.+1>

:rofit for t)e &eriod Earnin5s &er s)are Table "

2151$ #,.#p

1$55$ 32.2p

2+.8,> 22.83>

Statement of Cas) Flo s 2/1" Cas) 5enerated from O&erations )rofit for the period *nco e ta% e%pense Depreciation :et * pair ent7credit9 6oss on disposal of property, plant A equip ent 0hare options@award charge :et !inance losses@gains :et change in derivative financial assets and liabilities 0hare of profit in Uoint venture Decrease in non current prepay ents *ncrease in inventory *ncrease in trade and other receivables *ncrease@decrease in trade A other payables *nterest paid *nco e ta%es paid 6et cas) 5enerated from o&eratin5 2,#52 2+2# 5838 21# ,82 238 245 7,31,9 2/12 ,2##2 1154 21#1 7+#29 +8 238.88> 331 '31.,5> 28, 252.#3> 4# ',4,4.42> 7,549 25 7,#2129 72#289 ##41 71++9 72,229 1$$2$ 7,359 +2.45> 12 '#+.2+> 75+829 15.3#> 7+2289 '+8.5,> 232 7,529 722+49 1152* 2284.21> 225.15> '2.51> #+.4+> 3ariance 4 2+.8,> 5.+1> ,4.84> '+,2.++>

28

activities Cas) flo from Investin5 activities )urchase of property, plant A equip ent )roceeds fro sale of property, plant A equip ent *nterest received 6et cas) 5enerated from Investin5 activities Cas) flo from financin5 activities )roceeds fro options holders Dividends paid 6et Cas) used in financin5 activities 6et decrease in cas) and cas) e7uivalent /ash and cash equiv at 24 San 28,2@25 San 28,, (%change rate ove ent 6et cas) and cas) e7uivalents at 2! =an 2/1",2' =an 2/12

7,52239 5 4 ;11$5$<

7,355+9 3#, 4 ;1*5"*<

+,.45> '54> 8> +#.53>

222 7,8,+,9 ;11/1<

15 745+89 ;''!1<

22,.23> ,+.3#> ,,.4+>

;111"1< ,228 ,+8 7,88+59

;11'$1< ,+#+1 ,8# ,228

8.#2> '41.52> 2+.4,> '112.,4>

2,

Table * #atio C)art

5.!44 6.!3it Ma."in 75.!44 Ma."in8 "ed #a$er Plc )rench *onncection +roup Plc -uper+roup Plc ROCE 2009 %&.%' % .2 ',.(! 20 0 ( .09 % .( %2.%( 20 ( .(& % .,! %%.&2 20 2 ( .! '&.0( %(.9& 20 ! (2.!& ',.9% %&.2,

2009
"ed #a$er Plc )rench *onncection +roup Plc -uper+roup Plc Net 6.!3it Ma."in 76.!3it Ma."in8 2&.!2 . (.%9 !2.&%

2010
2&.&& . .9 9. &

2011
! .2! 2.2' 2'.9!

2012
2&.0 (.&' 2!.%%

2013
29. . (.! 20.2!

2009
"ed #a$er Plc )rench *onncection +roup Plc -uper+roup Plc ROE7 6.!3it a3te. ta,9 T!ta e:uit18 .(' .,.02 9.9(

2010
.92 .'.0( (.

2011
2.9 '. ( 9.&&

2012
.2% 2.' (.!&

2013
.!, .%.!2 '.!,

2009
"ed #a$er Plc )rench *onncection +roup Plc -uper+roup Plc Cu..ent Rati! 20.2 . (.0' '&. ,

2010
20.!9 . 2.% !.9!

2011
22.,! 2.! 29.,,

2012
20.( (.!' !0.(

2013
2 .&' . (.,' 2%.'9

2009
"ed #a$er Plc )rench *onncection +roup Plc -uper+roup Plc Acid Te4t Rati!7Li:uidit1 Rati!8 .9! 2.'2 .%9

2010
2.!( .9! 2.,9

2011
2. ' 2. 9 2.&

2012
.9& 2. 9 2.'2

2013
.,2 2. 9 !.0'

2009
"ed #a$er Plc )rench *onncection +roup Plc -uper+roup Plc 0.&2 .!! 0.%&

2010
. 9 .2 .9

2011
.0% .! .%9

2012
0.&( .2' .!&

2013
0.(& .22 .,,

22

Invent!.1 tu.n!ve. da14 ; <(9invent!.1 tu.n!ve. ti=e4>*?@+ da14

2009
"ed #a$er Plc )rench *onncection +roup Plc -uper+roup Plc &9.2' 92. , &'.

2010
,'.(' (9.%2 %%.!

2011
&2.%, (&.,' &0.22

2012
&,.,' ,9. , ('.(

2013
9,.0, ,(.&' ,!.''

T.ade Receiva- e4 tu.n!ve.7de-t!. c! ecti!n da148

2009
"ed #a$er Plc )rench *onncection +roup Plc -uper+roup Plc !9.2% 20.( !0.(!

2010
!2.2 !.29 2'.9,

2011
!%.!( %.!( !'.0(

2012
!!.'2 &.,( 2,.!!

2013
2&.0 20. ( 2&.((

T.ade 6a1a- e4 tu.n!ve.7c.edit!. /a1=ent da148

2009
"ed #a$er Plc )rench *onncection +roup Plc -uper+roup Plc '0.&, '2.09 !,.(2

2010
2!. 9 ! .% !!.,%

2011
!(.,! !2.,& !,.%9

2012
2(.9! '0.22 '2.

2013
! ., !(.'' !2.&

EP% 2009
"ed #a$er Plc )rench *onncection +roup Plc -uper+roup Plc 0.! 0 0 0.9

2010
0.!! 0

2011
0.'2 0 0.!&

2012
0.'2 0.0( 0.'%

2013
0.% 0 0.'%

Ma.Aet Ca/ita i4ati!n7 3.!= annua 4t!cA data8

2009
"ed #a$er Plc )rench *onncection +roup Plc -uper+roup Plc '% '! 0

2010
20( !, '90

2011
2,% (( 2,!

2012
! 0 ', 2,9

2013
% ! 2( %%,

PE Ratio 2009
"ed #a$er Plc )rench *onncection +roup Plc -uper+roup Plc .( 0 0 (.&

2010
% 0

2011
%.,( 0 ' .,!

2012
,.,! &.!! ,.,!

2013
2!.( 0 %.'

2+

Dividend Yield 2009

"ed #a$er Plc )rench *onncection +roup Plc -uper+roup Plc 5ea.in" '.,& !.&2 0

2010
!.'( .2& 0

2011
!. 2. 9 0

2012
!. ' !.2! 0

2013
2.2 0 0

2009
"ed #a$er Plc )rench *onncection +roup Plc -uper+roup Plc 0.&, !.2! ,%.0

2010
.&( (. 9 ,.&

2011
2.0! %.9' 2%.&

2012
9.(' (.0, &.,%

2013
20.%9 %.,' '.(&

Inte.e4t C!ve.

2009
"ed #a$er Plc )rench *onncection +roup Plc -uper+roup Plc %&.&, 0 2!.92

2010
%!. % 0 !!.09

2011
202.9 0 0

2012
,.( 0 0

2013
!(. 0 0

23