Accounting Financial Analysis Report

The report evaluates the investment opportunity of Caffyns plc. It includes company overview, strategies, accounting quality issues, financial analysis, and critical evaluation. The report concludes that the company is a good option for investment.

Running Head: Accounting Financial Analysis Report
1

Accounting Financial Analysis Report 2
Contents
Introduction.......................................................................................................................3
Company overview...........................................................................................................3
Strategies and operating policies of the company............................................................3
Accounting quality issues.................................................................................................6
Financial analysis..............................................................................................................7
Horizontal analysis.......................................................................................................8
Trend analysis...............................................................................................................8
Ratio analysis................................................................................................................9
Notes to the accounts..................................................................................................10
Critical analysis..............................................................................................................10
Recommendation............................................................................................................10
Task 2..............................................................................................................................11
References.......................................................................................................................14
Appendix.........................................................................................................................16

Accounting Financial Analysis Report 3
Introduction:
The report has been prepared to brief about the investment opportunity of Caffyns plc.
It would brief that whether the stock should be sold or it must be held. For evaluating the
investment opportunity and sell and buy options of Caffyns stock, financial reports and the
annual report of the company has been evaluated so that a better conclusion could be made on
the “sell” option. The report would lead on a better conclusion. It describes about the
strategies and operating policies of the company which includes, KPIs, SWOT, business
model, markets etc. Further, accounting quality issues would also be described in the report
which would explain about the accounting quality, red flags, disclosure policies, auditor’s
areas etc of the company.
Company overview:
Caffyns plc is a retailing company which retails the motors. The company is basically
based in United Kingdom. The company has been listed at London stock exchange. The
company has dealership of various big motor brands. The company has dealership in Lewes,
Brighton, Eastbourne, Worthing and Tunbridge Wells. The company has been founded in
1865 and from that time, various changes have occurred into the company (History, 2018)
The Company has never failed to attract and offer various profits to its stakeholders. Current
annual report (2017) explains that the return on equity return of the company could be seen
well from last year (appendix).
Strategies and operating policies of the company:
Strategies and operating policies evaluates the internal and external environments of
the company and depict that what changes are required to be done in the performance of the
company. Firstly, strategic analysis of industry has been evaluated on the basis of current
environment and the changes into the industry. The strategic analysis of motor industry is as
follows:
Porter’s 5 forces model:
Porter’s 5 forces analysis is a strategic management tool which evaluates and
understands the trend in the industry. Porter’s 5 forces model of car sales industry is as
follows:
Threat of new entrants:

Accounting Financial Analysis Report 4
New entrants in retail industry always bring innovation such as product
diversifications, new technology etc. The threat of new entrants in the industry is quite higher
and thus it has been found that the position of Caffyns plc is quite moderate and company is
required to be managing all the challenges and effectiveness.
Bargaining power of suppliers:
Numerous suppliers are there for the industry and thus suppliers are not in a position
to dominate the supplies price. It expresses that Caffyns plc is managing its operations in an
effective manner (Macintosh and Quattrone, 2010).
Bargaining power of buyers:
Numerous buyers are there in the industry in southeast area and thus buyers are not in
a position to dominate the supplies price. It expresses that Caffyns plc is managing its
operations in an effective manner through enhancing the total turnover.
Threat of substitute services or products:
Various substitute products such as airways, public transportation, commercial
vehicles etc are there in the industry and thus buyers have many options in front of them. It
expresses that Caffyns plc is required to manage a good position.
Rivalry among the existing competitors:
Lastly, it has been found that there are various competitors available in the market and
thus Caffyns plc is required to manage a good position and a competitive place in the
industry.
The above analysis explains that the industry position is good as well as the Caffyns
plc is also performing well in the market (Kaplan and Atkinson, 2015).
Activities, business model and market:
Activities, business model and market of Caffyns plc have been studied further to
evaluate the current position of the company and the operating design of the company. Main
activities of the company includes the maintenance and the sales of the motor vehicles of
different brands and the parts of the motor vehicles which includes the oil paint, sales of
tyres, accessories etc. The company’s growth rate is 5%. The company has earned and
generated huge profits through these activities (Annual Report, 2017). It basically works as a
mediator among the buyers and the manufacturers.

Accounting Financial Analysis Report 5
Further, the business model of the company has been evaluated and it has been
recognized that the company is one of the most leading motor retail companies in south east
of England (Annual Report, 2017). The business model of the company has been changed
various times due to the different goals and the objectives of the company. Though, the main
principle of the company is “to enhance more market share and enhance the revenue” which
has not been changed in so many years.
Lastly, the market performance of the company has been evaluated and it has been
recognized that the company is one of the largest comapny in south England as well as it has
diversified its market into various new countries such as USA, Ireland etc. (Weston and
Brigham, 2015).
Objectives and policies:
The main objectives and the policy of the company are to manage the turnover of the
company and enhance the market share of the company. The company is trying to diversify
its market into new countries and various plans have been prepared by the company for that.
KPIs:
KPIs stand for key performance indicators (DRURY, 2013). The key performance
indicators of the company is its stock price which briefs the positive market position of the
company, market worth of the company which also explains about the stockholder’s interests
in the company, total market share in the industry which has been enhanced from last year
and in comparison with the competitor, Pendragon plc, of the company, underlying profit
before tax which has been enhanced from last year, EPS, bank overdraft and loans, profits,
gearing position etc. the Above all the key performance indicators of the company briefs that
the performance of the company has been better and it is quite attractive for the purpose of
investment.
SWOT:
SWOT analysis explains about the internal and external environment of a company. It
briefs that how the company is performing and what changes could be done by the company
for the better performance. Following is the study of SWOT analysis:
Strengths:
1. Main strength of the company is the
motor vehicle brands.
Weakness:
1. Small business units

Accounting Financial Analysis Report 6
2. Financial position of the company is
strong.
3. Market share of the company is
enhancing.
4. Growth rate is quite higher (5% in
current year)
5. Labour cost has been reduced.
2. The activities of the comapny are less
competitive
Opportunity:
1. New markets (annual report, 2017)
2. New motor vehicle brands
Threat:
1. Rising cost of raw material (Simply
Wall, 2018)
2. Price changes of motor vehicle
rapidly
3. Technological issues such as robotic
cars.
Strategic report:
Annual report (2017) explains that the financial and non financial performance of the
company is getting better day by day. The current KPIs brief that the financial performance
of the company has been better from 2016. And on the other hand, the new strategy of the
company is also helpful for the company. New strategy express that the company should
focus on the premium volume market so that the greater resilience could be maintained to
deliver a strong sales. The current strategic report of the company briefs about various
positive changes such as diversification of market in the company which has been very
helpful for the company to manage the performance and meet the goals (Annual Report,
2017).
Critical evaluation:
The above evaluation on the industry and the company explains that the position of
the company has been better and thus the company is a good choice for the purpose of

Accounting Financial Analysis Report 7
investment. It would offer huge dividends and the return to the investor due to better position
in the market as well as better performance in terms of finance.
Accounting quality issues:
Accounting quality is an extent which briefs that the accounting and financial
transaction of an organization should be recorded. It measures the underlying performance of
an organization without any error. It is required for the auditors, shareholders and other
stakeholders of the company to evaluate the accounting quality of the organization. The
accounting qualities of Caffyns plc have been evaluated and it has been recognized that the
company is using the proper accounting standards to record the financial and accounting
transactions of the company.
Accounting quality:
Double entry accounting system has been followed by the company as well as the
accounts have been prepared by the company after evaluating all the accounting standards. It
explains that the accounting quality of the company is quite good and it would brief about the
exact details and the performance of the company (Financial Times, 2018).
Company disclosure:
Disclosure policies have been adopted by the company through GAAP and IASB. The
disclosure policies of the company are quite strong. Annual report (2017) of the company
briefs that the company has mentioned all the relevant figures and the notes about the
financial figures. The disclosure policies of the company have built the accounting quality of
the company stronger. It expresses that the company has not involved in any fraudulent
activities (Annual report, 2018).
Auditor’s areas:
Auditor area has also been studied to evaluate the accounting qualities of the company
in better way. Auditor evaluation report of the company has been studied and it has been
found that external and internal auditors of the company have completed their jobs in a better
way. The auditor report briefs that the company has disclosed all the relevant figures and no
accounting issues and mistakes have been done by the company.
Red flags:

Accounting Financial Analysis Report 8
Red flags explain about the danger signs. The annual report and current financial and
non financial position of the company brief that there is no danger in the company. The
growth rate of the company has been higher and comapny is performing well in term of
finance as well as non finance.
Financial analysis:
Financial analysis is another way to evaluate about the performance of the company.
For analyzing the performance of the company, annual report of the company has been
evaluated and the final financial accounts of the company have been measured. It expresses
that the company is a good option for the purpose of investment or not. The financial analysis
of the company is as follows:
Horizontal analysis:
Horizontal analysis is a way to evaluate the financial performance of an organization.
It takes the concern of last year and evaluates the final performance of the company on the
basis of that. It makes it easy for the management of the company to evaluate that whether the
company’s performance has been enhanced from last year or any decrement has taken place
into the performance of the company (Drury, 2005).
The study and the calculations of horizontal analysis brief that the total turnover of the
company has been lower from last year and due to it, the gross profit of the company has also
been lowered. Further, it has been found that the operating income of the company has also
been lower by 30.23% because of lower sales turnover and gross profit. Though, the net
profit of the company brief about the positive changes into the company and the performance
of the company express that the company has enhanced the level of the net profit. It expresses
about better financial position of the company (Morningstar, 2018).
Further, the financial performance of the company has been evaluated. Financial
performance statement of the company expresses that the company has enhanced the level of
total resources from the debt amount as well as equity amount. The analysis briefs better
performance of the company.
Trend analysis:
Trend analysis is a way to evaluate the financial performance of an organization. It
takes the concern of main figure (total assets, liabilities and stockholders’ equity and total
revenue) and evaluates the final performance of the company on the basis of that. It makes it

Accounting Financial Analysis Report 9
easy for the management of the company to evaluate that whether the company’s
performance has been enhanced from last year and how the company is performing in context
with the industry or the competitors of the company (Davies and Crawford, 2011).
The study and the calculations of trend analysis brief that the gross profit level of the
company has been lower from last year and due to it, the position of the company has been
affected. Further, it has been found that the operating income of the company has also been
lower. Though, the net profit of the company brief about the positive changes into the
company and the performance of the company express that the company has enhanced the
level of the net profit. It expresses about better financial position of the company (Simply
wall, 2018).
Further, the financial performance of the company has been evaluated. Financial
performance statement of the company expresses that the company has reduced the level of
current assets to manage the liquid position and working capital of the company as well as the
from the debt amount has been lowered to manage the capital stricture position of the
company. The performance of the company briefs about better performance of the company.
Ratio analysis:
Ratio analysis is a way to evaluate the financial performance of an organization. It
takes the concern of financial figures and evaluates the final performance of the company on
the basis of that. It makes it easy for the management of the company to evaluate that whether
the company’s performance is good or not. The ratio analysis of Caffyns plc has been
compared with the Pendragon as it is the main competitive company of Caffyns plc.
The study and the calculations of ratio analysis brief that the total profitability
position of the company has been lowered from last year. On the other hand, the profitability
level of competitor has also been lowered which explains that the reduction were due to
external issues. Further, the profitability performance of the company brief that the good
level has been managed by the company (Bromwich and Bhimani, 2005). Though, the ratios
brief about the positive changes into the company and the performance of the company
express that the company has enhanced the level of the net profit. It expresses about better
financial position of the company.
Further, the asset efficiency performance of the company has been evaluated. It
expresses that the company is required to maintain the proper credit policy to manage the cost
and the performance of the company. The asset efficiency ratios of competitive company are

Accounting Financial Analysis Report 10
quite competitive (Annual Report, 2017). So it is suggested to the management to manage the
assets of the company.
Further, liquidity ratios describe that the company is required to enhance the level of
the current assets to manage and enhance the level of short term debt obligation. In addition,
the capitals structure position of the company is competitive and it is better than Pendragon
plc. (Morningstar, 2018). Lastly, the investment ratios of the company briefs that the
company is a good opportunity for the purpose of investments.
Notes to the accounts:
Notes to accounts have been managed and stated by the company properly and
through using the GAAP and IASB. The notes to accounts of the company are quite strong.
Annual report (2017) of the company briefs that the company has mentioned all the relevant
figures and the notes about the financial figures in its notes to accounts. The disclosure
policies of the company have built the notes to accounts of the company stronger. It expresses
that the company has not involved in any fraudulent activities
Critical analysis:
The above evaluation on the industry and the company and its competitor explains
that the position of the company has been better and thus the company is a good choice for
the purpose of investment. It would offer huge dividends and the return to the investor due to
better position in the market as well as better performance in terms of finance as well as non
financial factors.
Recommendation:
On the basis of the above study, it is recommended to the stockholder to not to sell the
shares in current scenario as the industry has been broken down in recent year because of
financial crisis. The stock must be hold for now to manage and enhance the return from the
stock and in next year, the stock could be sold. At that time, the stock position of the
company would be better and thus the investor would be able to make better profits.

Accounting Financial Analysis Report 11
Task 2:
Introduction:
The given case briefs that if the Hammond Electronics which wants to invest into a
new project “SuperZip”. The report explains that whether the investment would be profitable
for the company or not.
Analysis:
The evaluation on the case has been done on the basis of capital budgeting techniques.
The calculations are as follows:
Project A
Year 1 Year 2 Year 3 Year 4 Year 5
Initial Outlay 700000
Revenues 480000 480000 480000 480000 480000
Material expenses 115000 120000 120000 120000 120000
Labour expenses 90000 90000 90000 90000 90000
Rent expenses 25000 25000 25000 25000 25000
Rent of warehouse 10000 10000 10000 10000 10000
Loss of contribution 35000 35000 35000 35000 35000
Other fixed cost 23000 23000 23000 23000 23000
EBDT 182000 177000 177000 177000 212000
Less: Depreciation 126000 126000 126000 126000 126000
EBT 56000 51000 51000 51000 86000
Less: Taxes 0 0 0 0 0
EAT 56000 51000 51000 51000 86000
ADD: Depreciation 126000 126000 126000 126000 126000
ADD: Scrap value 70000
ADD: working
capital 60000 60000
cash flow 795000 182000 177000 177000 177000 342000
Total cash flow -795000 182000 177000 177000 177000 342000
Calculation of Net Present Value
Yea
rs
Cash
Outflow
Cash
Inflow Factors
P.V. of Cash
Inflow
P.V. of Cash
Outflow
0
£
7,95,000.00 1.000 £ 7,95,000.00
1
£
1,82,000.00 0.909
£
1,65,454.55
2
£
1,77,000.00 0.826
£
1,46,280.99

Accounting Financial Analysis Report 12
3
£
1,77,000.00 0.751
£
1,32,982.72
4 £
1,77,000.00
0.683 £
1,20,893.38
5 £
3,42,000.00
0.621 £
2,12,355.09
Total £
7,77,966.73
£ 7,95,000.00
NPV= Total Cash Inflow-Total cash outflow -£
17,033.27
Calculation Of IRR
Yea
rs
Cash
Outflow
Cash
Inflow
Net cash
inflows
0 -£
7,95,000.00
-£
7,95,000.00
1 £
1,82,000.00
£
1,82,000.00
2 £
1,77,000.00
£
1,77,000.00
3 £
1,77,000.00
£
1,77,000.00
4 £
1,77,000.00
£
1,77,000.00
5 £
3,42,000.00
£
3,42,000.00
IRR 9.23%
Calculation Of Payback period
Yea
rs
Cash
Outflow
Cash
Inflow
Cash flows CF
0 $ -
7,95,000.00
$ -
7,95,000.00
$ -
7,95,000.00
1 $
1,82,000.00
$
1,82,000.00
$ -
6,13,000.00
2 $
1,77,000.00
$
1,77,000.00
$ -
4,36,000.00
3 $
1,77,000.00
$
1,77,000.00
$ -
2,59,000.00
4 $
1,77,000.00
$
1,77,000.00
$ -
82,000.00
5 $
3,42,000.00
$
3,42,000.00
$
2,60,000.00
4.46

Accounting Financial Analysis Report 13
The calculations brief that the cash flow of the company would be £ 2,60,000 while
the discounted cash flow of the company would be -£17,033.27. It expresses that the project
would offer huge losses to the company. The profitable position of the project is not good. On
the other hand, the internal rate of return and the payback period of the project have been
calculated and it has been found that the current IRR of the project is 9.23% whereas the
required internal rate of return is 16% which explains that the project is not a good
opportunity for the company.
Lastly, the payback period has been calculated and it has been found that the total
payment would be got back in 4.46 years which is higher than expected time period which
explains that the project is not a good opportunity for the company. It explains that the
company should not invest into the project.
Conclusion:
To conclude, the project would offer huge losses to the company as well as the
payback period is higher than expected time period and IRR of the project is 9.23% whereas
the required internal rate of return is 16%. It concludes that the project is not a good option
for the company.

Accounting Financial Analysis Report 14
References:
Annual report. 2017. Caffyns plc. [Online]. Available at:
http://www.Caffynsplc.co.uk/pdfs/annual_report_2017.pdf (Accessed as on 15th April 2018).
Annual Report. 2017. Penadragon plc. [Online]. Available at:
http://www.pendragonplc.com/documents/2017/pendragon-plc-annual-report-2017.pdf
(Accessed as on 15th April 2018).
Atrill, P. and McLaney, E.J., 2006. Accounting and Finance for Non-specialists. Pearson
Education.
Bromwich, M. and Bhimani, A., 2005. Management accounting: Pathways to progress. Cima
publishing.
Davies, T. and Crawford, I., 2011. Business accounting and finance. Pearson.
Drury, C., 2005. Management accounting for business. Cengage Learning EMEA.
DRURY, C.M., 2013. Management and cost accounting. Springer.
FT. 2018. Caffyns plc. [Online]. Available at:
https://markets.ft.com/data/equities/tearsheet/summary?s=CFYN:LSE (Accessed as on 15th
April 2018).
History. 2018. Caffyns plc. [Online]. Available at:
https://www.Caffyns.co.uk/about-us/Caffyns-history/ (Accessed as on 15th April 2018).
Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.
Macintosh, N.B. and Quattrone, P., 2010. Management accounting and control systems: An
organizational and sociological approach. John Wiley & Sons.
Morningstar. 2018. Caffyns plc. [Online]. Available at:
http://financials.morningstar.com/cash-flow/cf.html?t=CFYN&region=gbr&culture=en-US
(Accessed as on 15th April 2018).
Morningstar. 2018. Penadragon plc. [Online]. Available at:
http://financials.morningstar.com/ratios/r.html?t=PDGNF(Accessed as on 15th April 2018).
Phillips, P.P. and Stawarski, C.A. 2016. Data Collection: Planning for and Collecting All
Types of Data. John Wiley & Sons.

Accounting Financial Analysis Report 15
Simply wall. 2018. Caffyns plc. [Online]. Available at:
https://simplywall.st/stocks/gb/retail/lse-cfyn/Caffyns-shares/news/Caffyns-plc-loncfyn-time-
for-a-financial-health-check/ (Accessed as on 15th April 2018).
Ward, K., 2012. Strategic management accounting. Routledge.
Weaver, S.C., Weston, J.F. and Weaver, S., 2001. Finance and accounting for nonfinancial
managers. New York: McGraw-Hill.
Weston, J.F. and Brigham, E.F., 2015. Managerial finance. Hinsdale, IL: Dryden Press.

Accounting Financial Analysis Report 16
Appendix:
CAFFYNS PLC (CFYN) CashFlowFlag INCOME STATEMENT
Fiscal year ends in March. GBP in thousands
except per share data.
2017-
03
2016-
03
2015-
03
Revenue 212581 232492 210314
Cost of revenue 187971 205228 185207
Gross profit 24610 27264 25107
Operating expenses
Sales, General and administrative 22400 23638 12675
Other operating expenses -541 -317 -794
Total operating expenses 21859 23321 11881
Operating income 2751 3943 13226
Interest Expense 921 1117 1561
Other income (expense) -171 -191 -227
Income before income taxes 1659 2635 11438
Provision for income taxes 375 148 2183
Net income from continuing operations 1284 2487 9255
Net income from discontinuing ops 3839
Net income 5123 2487 9255
Net income available to common
shareholders 5123 2487 9255
Earnings per share
Basic 1.86 0.9 3.35
Diluted 1.86 0.89 3.3
Weighted average shares outstanding
Basic 2750 2759 2758
Diluted 2750 2805 2799
EBITDA 3776 4900 14079
CAFFYNS PLC (CFYN) CashFlowFlag BALANCE SHEET
Fiscal year ends in March. GBP in thousands
except per share data.
2017-
03
2016-
03
2015-
03
Assets
Current assets
Cash
Cash and cash equivalents 2321 219 1746
Total cash 2321 219 1746
Inventories 29904 32925 31896
Other current assets 7838 8449 8164
Total current assets 40063 41593 41806
Non-current assets
Property, plant and equipment

Accounting Financial Analysis Report 17
Land 38540 38470
Fixtures and equipment 10108 10267 10001
Other properties 36889 690 690
Property and equipment, at cost 46997 49497 49161
Accumulated Depreciation
-
11374
-
11279
-
11177
Property, plant and equipment, net 35623 38218 37984
Goodwill 286 286
Intangible assets 286
Deferred income taxes
Other long-term assets 6986 1167
Total non-current assets 42895 39671 38270
Total assets 82958 81264 80076
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 500 500 500
Accounts payable 11662 14776 14177
Taxes payable 197 416 446
Other current liabilities 22517 21592 21754
Total current liabilities 34876 37284 36877
Non-current liabilities
Long-term debt 10375 10875 11375
Deferred taxes liabilities 805 617 705
Pensions and other benefits 8554 4980 5388
Other long-term liabilities 812 812 1237
Total non-current liabilities 20546 17284 18705
Total liabilities 55422 54568 55582
Stockholders' equity
Common stock 1439 1439 1439
Additional paid-in capital 979 979 554
Retained earnings 23394 22422 20696
Accumulated other comprehensive income 1724 1856 1805
Total stockholders' equity 27536 26696 24494
Total liabilities and stockholders' equity 82958 81264 80076
CAFFYNS PLC (CFYN) Statement of CASH FLOW
Fiscal year ends in March. GBP in thousands
except per share data.
2017-
03
2016-
03
2015-
03
Cash Flows From Operating Activities
Stock based compensation 21 51 51
Inventory 1100 -1029 -5043
Other working capital -1423 -994 4979

Accounting Financial Analysis Report 18
Other non-cash items 2045 3324 3054
Net cash provided by operating activities 1743 1352 3041
Cash Flows From Investing Activities
Investments in property, plant, and
equipment -4636 -3825 -3027
Property, plant, and equipment reductions 2736 2295
Acquisitions, net 6707
Net cash used for investing activities 2071 -1089 -732
Cash Flows From Financing Activities
Short-term borrowing -500 -500
Long-term debt issued
Long-term debt repayment -500
Common stock issued 310 5
Repurchases of treasury stock -919 -717
Cash dividends paid -603 -573 -517
Net cash provided by (used for) financing
activities -1712 -1790 -1012
Net change in cash 2102 -1527 1297
Cash at beginning of period 219 1746 449
Cash at end of period 2321 219 1746
Free Cash Flow
Operating cash flow 1743 1352 3041
Capital expenditure -4636 -3825 -3027
Free cash flow -2893 -2473 14
Supplemental schedule of cash flow data
CAFFYNS PLC (CFYN) CashFlowFlag INCOME STATEMENT
Fiscal year ends in March. GBP in thousands except per share
data. 2017-03
2016-
03
Revenue -8.56% 10.55%
Cost of revenue -8.41% 10.81%
Gross profit -9.73% 8.59%
Operating expenses
Sales, General and administrative -5.24% 86.49%
Other operating expenses 70.66%
-
60.08%
Total operating expenses -6.27% 96.29%
Operating income -30.23%
-
70.19%
Interest Expense -17.55%
-
28.44%
Other income (expense) -10.47%
-
15.86%
Income before income taxes -37.04% -

Accounting Financial Analysis Report 19
76.96%
Provision for income taxes 153.38%
-
93.22%
Net income from continuing operations -48.37%
-
73.13%
Net income from discontinuing ops
Net income 105.99%
-
73.13%
Net income available to common shareholders 105.99%
-
73.13%
Earnings per share
Basic 106.67%
-
73.13%
Diluted 108.99%
-
73.03%
Weighted average shares outstanding
Basic -0.33% 0.04%
Diluted -1.96% 0.21%
EBITDA -22.94%
-
65.20%
CAFFYNS PLC (CFYN) CashFlowFlag BALANCE SHEET
Fiscal year ends in March. GBP in thousands except per share
data. 2017-03 2016-03
Assets
Current assets
Cash
Cash and cash equivalents 959.82% -87.46%
Total cash 959.82% -87.46%
Inventories -9.18% 3.23%
Other current assets -7.23% 3.49%
Total current assets -3.68% -0.51%
Non-current assets
Property, plant and equipment
Land -100.00% 0.18%
Fixtures and equipment -1.55% 2.66%
Other properties 5246.23% 0.00%
Property and equipment, at cost -5.05% 0.68%
Accumulated Depreciation 0.84% 0.91%
Property, plant and equipment, net -6.79% 0.62%
Goodwill
-
100.00%
Intangible assets -100.00%
Deferred income taxes
Other long-term assets 498.63%

Accounting Financial Analysis Report 20
Total non-current assets 8.13% 3.66%
Total assets 2.08% 1.48%
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 0.00% 0.00%
Accounts payable -21.07% 4.23%
Taxes payable -52.64% -6.73%
Other current liabilities 4.28% -0.74%
Total current liabilities -6.46% 1.10%
Non-current liabilities
Long-term debt -4.60% -4.40%
Deferred taxes liabilities 30.47% -12.48%
Pensions and other benefits 71.77% -7.57%
Other long-term liabilities 0.00% -34.36%
Total non-current liabilities 18.87% -7.60%
Total liabilities 1.57% -1.82%
Stockholders' equity
Common stock 0.00% 0.00%
Additional paid-in capital 0.00% 76.71%
Retained earnings 4.34% 8.34%
Accumulated other comprehensive income -7.11% 2.83%
Total stockholders' equity 3.15% 8.99%
Total liabilities and stockholders' equity 2.08% 1.48%
CAFFYNS PLC (CFYN) Statement of CASH FLOW
Fiscal year ends in March. GBP in thousands except per share
data. 2017-03 2016-03
Cash Flows From Operating Activities
Stock based compensation -58.82% 0.00%
Inventory
-
206.90% -79.60%
Other working capital 43.16% -119.96%
Other non-cash items -38.48% 8.84%
Net cash provided by operating activities 28.92% -55.54%
Cash Flows From Investing Activities
Investments in property, plant, and equipment 21.20% 26.36%
Property, plant, and equipment reductions
-
100.00% 19.22%
Acquisitions, net
Net cash used for investing activities
-
290.17% 48.77%
Cash Flows From Financing Activities
Short-term borrowing

Accounting Financial Analysis Report 21
Long-term debt issued
Long-term debt repayment -100.00%
Common stock issued -100.00%
Repurchases of treasury stock 28.17%
Cash dividends paid 5.24% 10.83%
Net cash provided by (used for) financing activities -4.36% 76.88%
Net change in cash
-
237.66% -217.73%
Cash at beginning of period -87.46% 288.86%
Cash at end of period 959.82% -87.46%
Free Cash Flow
Operating cash flow 28.92% -55.54%
Capital expenditure 21.20% 26.36%
Free cash flow 16.98%
-
17764.29%
Supplemental schedule of cash flow data
CAFFYNS PLC (CFYN) CashFlowFlag INCOME STATEMENT
Fiscal year ends in March. GBP in thousands
except per share data. 2017-03 2016-03 2015-03
Revenue 100.00% 100.00% 100.00%
Cost of revenue 88.42% 88.27% 88.06%
Gross profit 11.58% 11.73% 11.94%
Operating expenses 0.00% 0.00% 0.00%
Sales, General and administrative 10.54% 10.17% 6.03%
Other operating expenses -0.25% -0.14% -0.38%
Total operating expenses 10.28% 10.03% 5.65%
Operating income 1.29% 1.70% 6.29%
Interest Expense 0.43% 0.48% 0.74%
Other income (expense) -0.08% -0.08% -0.11%
Income before income taxes 0.78% 1.13% 5.44%
Provision for income taxes 0.18% 0.06% 1.04%

Accounting Financial Analysis Report 22
Net income from continuing operations 0.60% 1.07% 4.40%
Net income from discontinuing ops 1.81% 0.00% 0.00%
Net income 2.41% 1.07% 4.40%
Net income available to common shareholders 2.41% 1.07% 4.40%
CAFFYNS PLC (CFYN) CashFlowFlag BALANCE SHEET
Fiscal year ends in March. GBP in thousands
except per share data. 2017-03 2016-03 2015-03
Assets
Current assets
Cash
Cash and cash equivalents 2.798% 0.269% 2.180%
Total cash 2.798% 0.269% 2.180%
Inventories 36.047% 40.516% 39.832%
Other current assets 9.448% 10.397% 10.195%
Total current assets 48.293% 51.183% 52.208%
Non-current assets
Property, plant and equipment
Land 0.000% 47.426% 48.042%
Fixtures and equipment 12.184% 12.634% 12.489%
Other properties 44.467% 0.849% 0.862%
Property and equipment, at cost 56.652% 60.909% 61.393%
Accumulated Depreciation -13.711% -13.879% -13.958%
Property, plant and equipment, net 42.941% 47.029% 47.435%
Goodwill 0.345% 0.357%
Deferred income taxes 0.000% 0.000%
Other long-term assets 8.421% 1.436% 0.000%
Total non-current assets 51.707% 48.817% 47.792%
Total assets 100.000% 100.000% 100.000%
Liabilities and stockholders' equity
Liabilities
Current liabilities
Short-term debt 0.603% 0.615% 0.624%
Accounts payable 14.058% 18.183% 17.704%
Taxes payable 0.237% 0.512% 0.557%
Other current liabilities 27.143% 26.570% 27.167%
Total current liabilities 42.041% 45.880% 46.053%
Non-current liabilities
Long-term debt 12.506% 13.382% 14.205%
Deferred taxes liabilities 0.970% 0.759% 0.880%
Pensions and other benefits 10.311% 6.128% 6.729%

Accounting Financial Analysis Report 23
Other long-term liabilities 0.979% 0.999% 1.545%
Total non-current liabilities 24.767% 21.269% 23.359%
Total liabilities 66.807% 67.149% 69.412%
Stockholders' equity
Common stock 1.735% 1.771% 1.797%
Additional paid-in capital 1.180% 1.205% 0.692%
Retained earnings 28.200% 27.592% 25.845%
Accumulated other comprehensive income 2.078% 2.284% 2.254%
Total stockholders' equity 33.193% 32.851% 30.588%
Total liabilities and stockholders' equity 100.000% 100.000% 100.000%
Ratio Calculations 2017 2016
Profitability Ratios: 2017 2016
Return on Capital employed
Operating profit / 2751 3943
Capital employed (total assets - current
liabilities)
48,08
2
43,98
0
Answer: % 5.72% 8.97%
Gross Profit Margin
Gross profit / 24,610 27,264
Sales Revenue (note used operating revenue) 2,12,581 2,32,492
Answer: 11.6% 11.7%
Operating profit margin
Operating profit / 2,751 3,943
Sales Revenue % 2,12,581 2,32,492
Answer: 1.29% 1.70%
Asset Efficiency Ratios 2017 2016
Trade payable payment period ratio
Accounts payable/ 11,662 14,776
Cost of sales 1,87,971 2,05,228
Answer: (note the above needs to be x 365) 22.6451 26.2793
Inventory Turnover (days)
Average Inventory / 29,904 32,925
Cost of Sales # days 1,87,971 2,05,228
Answer: (note the above needs to be x 365) 58.07 58.56
Receivables Turnover (days)
Average trade debtors /
7,83
8
8,44
9
Sales revenue (note used operating revenue) # days
2,12,58
1
2,32,49
2

Accounting Financial Analysis Report 24
Answer: (note the above needs to be x 365) 13.46 13.26
Liquidity Ratios 2017 2016
Current Ratio
Current Assets / 40,063.00 41,593.00
Current liabilities 34,876.00 37,284.00
Answer: 1.15 1.12
Acid test ratio
Current Assets - Inventory / 10,159 8,668
Current Liabilities 34,876 37,284
Answer: 0.29 0.23
Capital Structure Ratios 2017 2016
Gearing ratio
Long term liabilities / 20,546 17,284
Capital employed 48,082 43,980
Answer: % 0.427 0.393
Interest Coverage Ratio
EBIT / 2,751.00 3,943.00
Net Finance Costs (used net interest expense) 921 1,117
Answer:
times
p.a
2.98
7
3.53
0
Investor's Ratios 2017 2016
Earnings per share
Net income 5,123 2,487
Weighted average shares outstanding 2,750 2,759
Answer: 1.863 0.901
Dividend coverage ratio
Net income / 5,123.00 2,487.00
Dividend paid to shareholders 603 573
Answer:
8.49
6
4.34
0