ACC 3015 Report: Financial Performance Evaluation of Food Sector Firms

This report presents a detailed financial analysis of three food companies: Green core group plc, Hilton food group plc, and Premier food plc, all operating within the food sector. The report is divided into two main sections. The first section examines the strategic goals and objectives of each company, followed by a comprehensive evaluation of their financial performance using various financial ratios such as ROE, ROCE, profit margins, and turnover ratios. The second section explores different sources of finance, both internal (retained earnings, selling tangible assets) and external (equity shares, debentures, term loans), that can be utilized for financial assistance. The analysis provides insights into the companies' investment opportunities and overall financial health, with Green core group plc identified as the best-performing company based on the financial data presented.

ACC 3015

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Section A..................................................................................................................................................3
Question 1...............................................................................................................................................3
Section B................................................................................................................................................10
Question 2.............................................................................................................................................10
CONCLUSION.............................................................................................................................................12
REFERENCES..............................................................................................................................................13
REFERENCES..............................................................................................................................................15

INTRODUCTION
The report is based on three distinct companies which are Green core group plc, Hilton food
group plc and Premier food plc. All three companies operates in the aspect of food sectors and
each one of have particular goals & objectives. The report is categorized in to two parts under
which first part contains detailed information about goals and objectives of each company. As
well as financial performance is also evaluated in a comprehensive manner by help of various
kinds of ratios. In the second section of report, information about various kinds of sources of
finance are discussed that can be used for financial assistance.
MAIN BODY
Section A
Question 1
1a. Analysis of goals and objectives of each company:
Green core group plc: A major producer of ready meals is Green core Group plc. They are
pleased to provide some of the UK's most popular supermarket and fast food clients with a vast
selection of chilled, preserved and atmospheric foods.
Strategic objectives- The broad picture priorities for the organization are corporate goals: they
explain what the company would do to attempt to accomplish its purpose (Oncioiu, 2019).
Strategic goals are typically some sort of success goal, such as introducing a new product,
increasing revenue, or increasing the corporation's manufacturer's market share. The above
company has such objectives that are as follows:
In an increasing food market, the company's strategy to boost demand focused on three main
aspects: widening its product proposition and attracting consumers to buy more. The plan of the
company is to further reinforce our relevance to our customers by pushing income through a
shared supply chain, increasing value across their portfolios, along with doing more for clients.
The accomplishment of the organization business aim depends on four key capabilities: food
quality, core people, Greencore honesty and sustainable business. The execution of this plan

involves a broad and knowledgeable organization called Green core, underpinned by a shared
dedication to doing business.
Hilton food group plc- For a longer span of time, industry has become a competitive enterprise
with powerful values. The professional image for success is what draws its clients. And their
faith in lengthier alliances has powered their rise in multinationals. The company's concern is to
establish that the company's corporate partners exceed their rivals. The company's goal as a
corporation is Absolute Coordination. Business's devotion, engagement and desire to do
whatever it can to make its workers succeed. One job, one intent, one shared aim. Organizational
personnel are in the core of all the company does. Corporate national heritage was always
distinct and important. The company's principles describe the ways wherein they think of
themselves as an entity and how they behave as individuals. Business staff, based on common
principles and established strategies, act as partners-supporting allies. These behaviors are at the
heart of our society and
Premier food plc- The company purpose guarantees them the great food that the business clients
enjoy, food that is nutritious, easy to cook and available in different forms, what they're about to
do anyway. That is why clients see their brands in nearly 94% of the total part of the British
households. The firm promotes famous brands and great products, and its purpose is to show
how the food agency is at the heart of how a collaborator does it successfully. The organization
is focused on building a genuinely stunning operational site (Sun, Kent and Wang, 2019). The
organization's mutual principles provide workers with a collective choice process and serve to
motivate them in the manner in which they do jobs, as well as force one another to incorporate
them into everyday operations. In the last three years, substantial development was already made
throughout the adoption of the company's principles and priorities across the company, growing
development in collaboration and communication with workers, and improving traii from across
company.
1 b
Performance analysis of three companies:

Green core group plc-

Interpretation:
ROE using Net income (%)-
Analyze- On the basis of above chart this can be stated that return on earnings of Green Core
Company has increased in year 2019 and 2020. This shows that there is significant growth in
efficiency of generating return for above company (Abernethy and Wallis, 2019). On the other
side, Hilton Company’s performance is constant in year 2019 and 2020 which shows that they
are able to produce higher return on equity. In the context of Premier food plc, it can be analyzed
that their performance is too weak compared to all other companies.

ROCE (%)
Analysis- On the basis of above chart this can be stated that there is Green core group plc, who
has higher return on capital employed compared to other companies that is of 19.12%. Apart
from this, Hilton food plc this can be stated that there ratio has been dropped in year 2020 by
2.96%. Similar to above ratio, Premier food plc’s performance is poor compared to both
companies and this is because of higher capital expenses.
Net profit margin:
Analyze: In terms of Green core plc, it can be assessed that their performance has been boosted
in year 2020 by huge margin as compared to year 2019. In addition to this, Premier food plc
faced negative net margin of -5.18% due to higher amount of expenses. As well as Hilton food
group plc’s performance s constant in all three years that is a good sign.
Gross margin-
Analyze: Green core group plc and Premier food plc both have same gross margin in all three
years. And in comparative manner Premier food plc is better from other companies. On the other
side, Hilton food group plc’s performance is poor compared to both. This is so because of higher
cost of sales and lower revenues.
EBIT-
Analyze: Hilton food group plc is able to manage their earnings before interest and tax constant
in each year that shows their efficiency. On the other hands, Green core group plc and Premier

food plc faced negative growth in year 2019 and in year 2020 their performance has been
increased in an effective manner.
Collection period:
Analyze- In the context of collection period, it can be stated that Premier food plc is able to
recover their debt in less time period as compared to both companies (Lukason and Camacho-
Miñano, 2019). On the other side, Hilton food group is taking too much time to recover their
debt. As well as Green core plc managed to reduce time for collecting their debt in less time in
year 2020 as compared to year 2019.
Credit period:
Analyze- Green core food plc and Hilton food plc, both have similar credit period which both of
them are paying their debts in same time. While Hilton food group plc is taking more amount of
time to pay their debts.
Current ratio:
Analyze: The ideal current ratio is 2:1 and from above chart, we can find out that only Green
core group plc is able to manage this ratio in year 2019. While rest of companies are not able to
do so due to higher current liabilities.
Net assets turnover ratio

Analyze- On the basis of above table, this can be stated that Hilton food group plc has better
ratio due as they are able to manage their assets in less time and cost. While premier food plc is
has lower ratio that states that they are not able to manage their assets.
Non financial ratios:
Shareholder fund per employee-
Analyze- There is significant difference among these companies because premier food plc has
effective funds for employees and it is almost 4 times from rest of two companies.
Total assets per employee-
Analyze- There is significant difference among these companies because premier food plc has
effective assets for employees and it is almost 5 times from rest of two companies.
1 c
On the basis of above financial analysis of all three companies this can be stated that Green core
group plc is best performing company. This company has best investment opportunity as they are
able to generate higher profit and returns in an effective manner.
Investment opportunity- An investing potential is any case in which you have the possibility of
buying anything that even in the potential has a potential to achieve value (Atrill and Lindley,
2019). Realizing through resources to reap the benefits of as well as how to handle it is the key
to making wealth by working. The Green core group plc has higher investment opportunity and
they will produce higher return in upcoming time period.

Section B
Question 2
2a
In fact, the term "internal factors via which funds are produced by general structure the very
ongoing existence of finance (Kim, J.B.,Lu and Yu, 2020). These are borrowing/lending or
funding derived directly by a company compared to financing, such as loans issued by financial
institutions as foreign factors. The financial information channel is income generation,
investment/asset disposition and comprehensive handling of cash flow assets. Any of the key
internal lengthier resources are available to businesses in this context:
Retained Earnings- In the sole premise that they will be the final income of a company, residual
profits/earnings recorded in financial statements are known as an inherent source of financing for
corporations (Helling, Maury and Liljeblom, 2020). Retained earnings can be described as
income that remains after distributions have been paid to the shareholders or shareholders of the
stock. Retained earnings, aside from longer-term leases and obligations, are a lengthier source of
business financing where no mandatory maturity occurs. Retained earnings, like borrowed
money, are often not characterized by a fixed obligation on annual fees or debt payments.
Selling Tangible Assets-Another internal stream of financing is the disposal of capital properties.
If a firm that sells the property estate and still generates cash is explicitly used to cover funding
needs, we consider it to be an inherent source of finance from the selling of fixed assets. Based
on the type of assets provided, these will act as longer-term financing. Bear in mind that owning
land, houses or machinery/plants can lead to longer-term and broader uses of financing.
Furthermore, it is prudent to periodically search for fixed asset lists and find properties that are
further non-use or are either out of control, etc. As long as some real occurrence occurs, this
share will be released, meaning there is less shrinkage in asset prices.
External Sources of Finance- Indeed the term 'external financing sources' illustrates the
fundamental essence of financing (Aoun and Alaaraj, 2019). Stocks, preference shares, bonds,
debt instruments, investment capital, financing, recruitment acquisitions, secured loans, cash
credits, etc are secondary financial variables. In comparison to the retained capital generated

externally in the course of corporate operations, money raised beyond the group is assumed from
external sources.
Equity Shares: For large businesses, general agreement is a prominent method of drift-funding.
Not all enterprises may have an option and are regulated by a variety of rules. A main aspect of
the stock holdings is the division of ownership rights, thus restricting the interests of existing
owners to a certain degree.
Debentures: Another traditional method of financing used by firms that prefer loans to equity is
debenture/debt bonds. It is considered that loans are a better way to invest than bonds. With the
owners, it's doesn't share control. It's that the real interest rate paid to the beneficiary of the
benefit is tax-free. The balance-remains of the mechanism of debt concerns are equivalent to
issues of alternative investments. It is thus sold to the wider populace and should thereby
conform to the required rules. Debt bonds therefore involve some chances of complications and
are not secured by all of the properties of the company.
Term Loans-Term loan requirements are somewhat similar with debt/debt securities, but do not
require ample issuance costs and are issued by a banking body (Chen, Gramlich and Houser,
2019). That's not the recipient's issue. A thorough review of the corporation's strategic and
financial strategies is carried out by a lending company in order to determine the company's
ability to service its debt. Such debts are backed by these properties as well.
Preferred Stock- The features of these securities include preferred investments and debt
portfolios. They are considered to have been preferred even but they had preference over share
capital, taking into consideration the distribution at the redemption point of dividend payouts and
equity investments (Ozdil, and Hoque, 2019). Dividend payments on preferred stock of a certain
sort, known as combined preferential equity, shall be held until such period as they are not taken
out. These distributions' payments could be overdue, but they could also be ignored.
2b
From above mentioned sources of finance Green core plc can use retained earnings. This is so
because their financial condition is good enough and if they adopt it than there will be no
additional cost to pay to acquire funds. This source of fund might effect to shareholders as: