CORPORATE ACCOUNTING 3
as an opportunity as well as remained confident the Group’s management could get the Company
fully recovered. Moreover, the 2018 reshuffle of the Group’s key players that saw Andre Nell
leaving his position as the MD and Richard Hinson stepping up to the position of the CEO a few
months to August 2018, had added such a sense of confidence. Indeed, more needed to been
known at any rate when the Group released its results.
As at July 8, 2019, the Group’s share price had risen thirty percent. Specifically, the share
price increased 29.40 percent on 8/07/2019, apparently following the news.com.au interview
with the CEO of the Group, Peter George which highlighted Mr. George’s future plans for the
Group. The ASX further issued a “please explain” to the Group following its shares jumping
from fourteen cent level it was the trading at opening on Friday to the high of twenty-two cents
hit on 8/07/2019, with exchange operator further noting a “substantial rise in the RFG’s
securities volume traded on that Friday of 5/07/2019. The Group reacted on 09/07/2019
afternoon by charging that it was not aware of the trigger or rationale behind the move and
pointed to the interview which got published on Friday as the potential trigger of the movements
in shares price. The Group’s share price have dropped nearly 98 percent since it record high of
7.56 dollars (hit in Feb 2015), following a sequence of revelations about franchise
mismanagement came to be known.
B. Retail Food Group (RFG Profit (Loss) Analysis (2017-2019)
According the income statements for the RFG, the company has had its ups and downs in
terms of profit and loss. For the period 2017, 2018 and 2019, the Company made a gross profit
of 69.24, 56.28 and 120.53. This shows that there was a decrease in gross profit between 2017
and 2018 and an increase between 2018 and 2019. However, the Company made net loss for all

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