Financial Analysis of Greencore Group, Hilton Food Group, and Premier Foods

This study analyzes the financial performance of Greencore Group, Hilton Food Group, and Premier Foods over the past three years. It includes an evaluation of their strategic plans, financial goals, and measurable success indicators. The study also discusses the main types of internal and external long-term finance available to listed companies and how long-term finance affects the interests of existing stakeholders.

Accounting
and
Finance for Managers

Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
SECTION A.....................................................................................................................................3
1a. Strategic Plans for each company including the main financial goals and measurable
success indicators in relation to financial growth, financial sustainability and financial
performance:...........................................................................................................................3
1b. Critically evaluate the performance of the three companies using the latest three years
financial and non-financial data:............................................................................................4
1 c.........................................................................................................................................14
SECTION B...................................................................................................................................14
2a. Main types of internal and external long-term finance available to listed companies:. .14
2b. How long-term finance affects the interests of existing stakeholders............................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................18

INTRODUCTION
The entire study is focused on financial analysis of three companies: Green core group
plc, Hilton food group plc and Premier food plc, which belongs to same industry and are top
competitors of each other. The first section coves ratio analysis and strategic plans, objective and
goals of these companies while other parts cover discussion about long term sources of internal
and external Finances and to what extent long term source-finance affects stakeholders.
MAIN BODY
SECTION A
1a. Strategic Plans for each company including the main financial goals and measurable success
indicators in relation to financial growth, financial sustainability and financial
performance:
Greencore Group Plc: The organisation's ambition to boost demands in the rapidly growing food
market/industry relies on two principal facets: widening its brand offering and enabling
consumers to buy more. The organization's strategy is to progressively strengthen their relevance
to clients by driving income through a shared value chain, increasing values through their
portfolios and making life easier for their clients. The accomplishment of the Organization's
strategic goal depends on four central features: better quality Foods, Core individuals/groups,
Greencore Credibility and Sustainability Corporation. A massive and capable undertaking
characterised by a shared dedication to performing business labelled Greencore Route, is needed
to execute this strategy (Bamber and Parry, 2014).
Hilton Food Group Plc: Company has long been an innovative enterprise with sound values. The
credibility of the organization for success is what draws their clients. And their confidence in
long-term relationships has furled our success internationally. The corporation's mission is to
ensure that company's retail partners succeed over their rivals. The aim of the Organization as a
corporation is focused on Absolute Collaboration. Corporation's dedication, energy and
willingness to do whatever can to help company's partners succeed. One plan, one goal, one
shared vision. The people of organization are at forefront of everything company do. The culture
of the business has always unique and important. The principles of the corporation describe the
forms they think of ourselves as an entity and the manner they function as individuals. Business

staff work as collaborators supporting partners, based on common agendas and agreed priorities.
These behaviours are the core to our society and keys to their growth in business.
Premier Foods Plc: The objective of the business assures them of what they have to do here-
create fantastic food which their customers enjoy, food which is delicious, simple to cook and
accessible in versatile formats. This is why consumers find their labels in 94percent of the
overall of British families. Business is supportive of its famous brands and fantastic goods, and
their aim is to demonstrate how organization food is at core of how well a collaborator does each
day. Business is dedicated to building a genuinely Wonderful Place of Work. Company's mutual
principles provide people with a collective basis for decision making and helps direct them
in way they do things, as well as challenge one another to embody them with each day. Over the
past three years, substantial progress has been achieved in incorporating the Group's standards
and objectives around the organisation, growing investment in collaboration and interaction with
employees, and enhancing preparation in fields like leadership including integration (Patra,
2006).
1b. Critically evaluate the performance of the three companies using the latest three years
financial and non-financial data:
Financial and non-financial ratios:

1. ROE using Net income (%)-
3/1/2018
6/1/2018
9/1/2018
12/1/2018
3/1/2019
6/1/2019
9/1/2019
12/1/2019
3/1/2020
-10
-5
0
5
10
15
20
25
30
35
40
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC
Analyses- On the premise of the aforesaid table, it can be reported that returns on earnings in
case of Greencore corporation has been improved in the periods 2019 as well as 2020. Which
demonstrates there is substantial improvement in return-generating performance for the above-
mentioned firm. In the other hand, the success of Hilton Corporation in the year-2019 and year-
2020 is stable, this demonstrates that they have been managing to achieve better returns on
equity-funds. In the case of the Premier food corporation, it can be evaluated that their efficiency
is too poor contrasted with all other corporations (Sarwar, Kutan, Ming and Husnain, 2019).
2. ROCE (%)

3/1/2018
5/1/2018
7/1/2018
9/1/2018
11/1/2018
1/1/2019
3/1/2019
5/1/2019
7/1/2019
9/1/2019
11/1/2019
1/1/2020
3/1/2020
0
5
10
15
20
25
2.58
4.8
19.12
12.43 11.98
9.02
2.94
1.16
3.37
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC
Analysis- On the premise of the foregoing graph, it could be mentioned that there in case of
Green Core corporation which has a greater returns on capital invested relative to other firms,
which is 19.12 per cent. With the exception of this, it can be seen that Hilton corporation's ratio
declined by 2.96 per cent in 2020. Related to the aforementioned ratio, Premier corporation's
output is low relative to all firms, and this is attributed to increased capital expenditures.
3. Net profit margin:
3/1/2018
6/1/2018
9/1/2018
12/1/2018
3/1/2019
6/1/2019
9/1/2019
12/1/2019
3/1/2020
-6
-4
-2
0
2
4
6
8
10
0.53 0.75
7.48
2.52 2.63 2.382.55
-5.18
6.33
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC
Analyses: With respect to Green-Core corporation, it can be determined that their effectiveness
has been improved by a substantial margins in year-2020 relative to year-2019. In comparison,

Premier Food corporation experienced an adverse net profit of around -5.18 per cent owing to
increased costs. Along with this Hilton food group corporation's consistent achievement over all
3 years, that'd be a favourable condition.
4. Gross margin-
3/1/2018
6/1/2018
9/1/2018
12/1/2018
3/1/2019
6/1/2019
9/1/2019
12/1/2019
3/1/2020
0
5
10
15
20
25
30
35
40
45
50
31.12 30.23
33.84
11.93 12.69
16.17
40.42
44.12 40.94
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC
Analyses: Both corporations Green Core Group and Premier Food have the same profit margins
throughout all 3 years. As well as Premier food corporation is well off than other firms in a
comparable way. In the other hand, the results of Hilton's food corporation is low relative to both
corporations. This is ascribed to increased sales costs and reduced revenues (Basuki, Hidayat and
Budiwitjaksono, 2020).
5. EBIT-
3/1/2018
6/1/2018
9/1/2018
12/1/2018
3/1/2019
6/1/2019
9/1/2019
12/1/2019
3/1/2020
0
2
4
6
8
10
12
1.84 2.04
6.73
2.58 2.8 3.08
8.48
0.55
11.25
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC

Analyses: Hilton Food corporation is capable to maintain its profits before interests and
taxes constants on an annual basis that demonstrates its success. while on other side, Green Core
Corporation and Premier Food corporation faced adverse growth in year-2019 as well as
enhanced their efficiency in a proficient way in period-2020.
6. Collection period:
3/1/2018
6/1/2018
9/1/2018
12/1/2018
3/1/2019
6/1/2019
9/1/2019
12/1/2019
3/1/2020
0
5
10
15
20
25
30
35
40
30
34
26
30 31
37
24
29 27
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC
Analyses- In the view of debtor-collection period, it can be argued that Premier corporation is in
effective position to collect their trade-receivables within a shorter time frame relative to both
other corporations. In the other hand, the Hilton Food Company is taking too long period to
recapture its debtors. Including Green Core corporation, managed to minimize the trade-
debts recovery period in lesser time in 2020 relative to 2019 (Easton, McAnally, Sommers and
Zhang, 2018).
7. Credit period:

3/1/2018
6/1/2018
9/1/2018
12/1/2018
3/1/2019
6/1/2019
9/1/2019
12/1/2019
3/1/2020
0
10
20
30
40
50
60
70
47 50 54
59
65 65
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC
Analyses- Green Core corporation and Hilton Food both have identical repayment periods, that
are both clearing their obligations within same time-frame. Although Hilton Food plc is requiring
additional time to settle its obligations.
8. Current ratio:
3/1/2018
6/1/2018
9/1/2018
12/1/2018
3/1/2019
6/1/2019
9/1/2019
12/1/2019
3/1/2020
0
0.5
1
1.5
2
2.5
0.75
2.01
0.69
1.2 1.23
1.05
0.78 0.78
0.98 GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC
Analyses: The optimal current ratio generally regarded as 2:1, and it could perceive from above-
stated graph that only corporation Green Core plc is capable of maintaining such ratio in period-
2019. While the rest of the firms was reluctant to do so due to greater current obligations.
1. Net assets turnover ratio

3/1/2018
6/1/2018
9/1/2018
12/1/2018
3/1/2019
6/1/2019
9/1/2019
12/1/2019
3/1/2020
0
1
2
3
4
5
6
7
1.49 1.81 2.06
6.53
5.56
3.58
0.42 0.42 0.32
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC
Analysis- On the base of the aforesaid chart, this can be mentioned that the Hilton Food Group
corporation has a healthier ratio as it is capable of handling its properties with less timeframe and
expense. While Premier food has a smaller percentage, it reports that corporation is unable to
control their money.
2. Gearing Ratio:
Analysis: This above-stated graph depicts that Gearing ratio of Green Core and Hilton has been
has been increased over three year while Premier Foods Plc’s gearing ratio has been declined
over the period as well as lower gearing ratio. This shows that Premier Corporation has more
efficient capital structure as this has lower gearing ratio compare to others (Amanda and Riyanto,
2020).
Non-financial ratios:

3. Shareholder fund per employee-
3/1/2018
6/1/2018
9/1/2018
12/1/2018
3/1/2019
6/1/2019
9/1/2019
12/1/2019
3/1/2020
0
50
100
150
200
250
300
350
400
450
58 64
26
44 38 38
234 230
404
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC
Analysis- There is a major gap between both firms, since Premier food corporation has efficient
personnel' funds which is about four times greater than the majority of these two corporations.
4. Total assets per employee-
3/1/2018
6/1/2018
9/1/2018
12/1/2018
3/1/2019
6/1/2019
9/1/2019
12/1/2019
3/1/2020
0
100
200
300
400
500
600
700
800
167 173
100116 121
181
540 533
729
GREENCORE GROUP PLC
HILTON FOOD GROUP PLC
PREMIER FOODS PLC
Analysis- There is indeed a big disparity between both firms and the prime food corporation has
adequate assets for personnel and is about five times greater than the majority of two
corporations (Dawar, 2017).

1 c
On the base of the aforesaid financial review of all 3 corporations, it can be claimed that
the Green-Core Group corporation is the highest/best ranked in performance. This corporation
has the foremost investment potential as it is equipped to produce greater revenues and yields in
efficient way.
Investment opportunity- this is a situation in which investor have the potentials to acquire
something that, except in the potentials, has the chance to gain benefits. Realizing the advantages
of, as well as how to control, by money is the secret to creating wealth by functioning.
Here, comparatively Green Core Group offers a greater investment opportunity to investors as
company can achieve greater yields in the upcoming years.
SECTION B
2a. Main types of internal and external long-term finance available to listed companies:
Internal sources of Finance: The expression "internal sources financing" actually demonstrates
the very continued existence of funding. This is the funding or money that is produced internally
by corporation, as opposed to finance, like loan made externally through banking institutions.
The inner stream of funding is the retention of income, the selling of assets/resources and the
substantial control over working capital-fund. In this regard here are certain key internal-long
term finance available to entities:
Retained Earnings: These accumulated profits are shown in balance sheet are pointed to
as internal source of funding for corporations for the sole rationale that they are final
result/profits of a corporation. Retained profits could be described as gains left behind after the
dividend has been paid to the investors or by shareholders of the stocks. Retained profits are a
longer-term stream of financing for a corporation since there's no forced maturity, such as
longer-term mortgages and debts. Retained earnings are often not distinguished by a defined
obligation of interests or instalment instalments, such as borrowed money.
Sale of Tangible Assets: The selling of fixed-assets is another inner stream of funding. When a
company selling its tangible-assets as well as cash generated is used locally to fund capital
requirements, we consider it an intrinsic stream of finance from the selling of assets. This can act
as longer-term financing, focusing on what type of properties are offered. Note, selling land,
houses or equipment can lead to longer-term and larger financing needs. Furthermore, this is a

smart thing to search fixed asset registry on a daily basis and to find properties that are no longer
in service or are now outdated, etc. These securities should be selling as soon as any specific
occurrence arises, so that there will be fewer dilution of valuation of asset (Arkan, 2016).
External Sources of Finance: The expression 'external sources of funding' actually reflects the
fundamental essence of funding. External forms of financing include equity funds, preference
shares, bonds, term loans, investment capital, lending, acquisition of hiring, commercial credits,
bank-overdrafts, factoring, etc. Through external streams, we imply capital gathered through
beyond the company as opposed to the retained profits produced internally in business operation.
Equity Shares: Equity share-capital are a famous method of deriving-funds for large businesses.
Not all organizations will use the alternative and it is regulated by lot of regulations. The
'division of ownership interests' is a central aspect of the shareholding and thus the interests of
existing shareholders are reduced to some degree.
Debentures: These are another typical way of funding employed by businesses that favour
debts to equities. Debentures are known to be a better form of borrowing than bonds. It doesn't
share influence with stakeholders. It is that the interests paid to the recipient of the benefit is tax
free. The remainder of the debt issue process is close to the equity issues. It's also sold to the
general public and hence the required laws must be obeyed with. Debt securities often entail
certain costs of issuance and are backed by certain resources of the entity.
Term Loans: The qualities of term loans are somewhat comparable to debentures/debt securities,
while it doesn't require as much of costs of issuance and it is issued by bank institution. The
individual is not interested in this. A thorough review of the corporation's assets and strategic
plans is carried out by the bank to determine the corporation's debt servicing ability. These debts
are also backed by such properties.
Preferred Stock: Preferred stock/securities are the attributes of common securities and
debt stocks. These are considered chosen because they have taken precedence over ordinary
stock in consideration of the distribution of the dividends and capital even at the point of
liquidation. The dividend of particular form of preferred stock, termed accumulated preferred
securities, is accrued until this is not paying out. Payments of such dividends can be postponed,
but could even be overlooked (Pokale, 2020).

2b. How long-term finance affects the interests of existing stakeholders
This most common source of long-term financing in all these selected companies. This is simple
to utilise retained earnings by company but this has certain effects on interests of present
stakeholders. In this regard here following is comprehensive discussion on how this source can
affects interests of stakeholders in case of Green Core Group corporation:
Shareholders or Investors: Use of retained earning can affect overall wealth of shareholders as
well as affect the trust of investors as retained earnings are mainly for the distribution among
company’s shareholders.
Suppliers and Lenders: Use of retained earning can affect company’s image among suppliers and
lenders as in practical life this indicates company’s inefficiencies.
Employees: Using retained earnings direct affects company’s wealth per employee. A decline in
wealth per employee can impact trust of employees on company’s performance and lead to
increase in number of employees left company (Agustina and Suprayitno, 2020).
CONCLUSION
It has been asserted from the aforementioned report that the Accountings and Finance
elements act as a integral component of the governance of each corporation. Companies set - up
on resources, however if executives do not own the assets, they are not personally influenced by
the company. Through accurately paying for the company's sales and investments, executives
can regulate the stream of funding and as a practice, oversee the corporation.

REFERENCES
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