Financial Performance Analysis of Three Food Companies: ACC 3015

This report conducts a detailed financial analysis of three food companies: Green Core Group plc, Hilton food group plc, and Premier food plc. Section A examines the companies' strategic goals and objectives, followed by a performance analysis using various financial ratios such as ROE, ROCE, net profit margin, gross margin, and collection periods. Non-financial ratios like shareholder funds per employee are also analyzed. Section B delves into the different sources of finance, differentiating between internal and external sources. Internal sources discussed include retained earnings and selling real assets, while external sources cover equity shares, debentures, term loans, and preferred shares. The report aims to provide insights into the financial health and investment potential of the three companies, offering a comprehensive overview of their financial strategies and performance metrics.

ACC 3015

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY..............................................................................................................................................3
Section A..................................................................................................................................................3
Question 1...............................................................................................................................................3
Section B..................................................................................................................................................9
Question 2...............................................................................................................................................9
CONCLUSION.............................................................................................................................................12
REFERENCES..............................................................................................................................................13

INTRODUCTION
Three independent firms, Green core group plc, Hilton food group plc and Premier food plc, are
also the basis of the study. All three businesses work in the food industry and every one of them
has unique priorities and targets. The report is divided into two sections, the first section of
which includes comprehensive details about each corporation's aims and priorities. Along with
financial results, different types of ratios are often measured in a systematic way. Details on
different kinds of funding sources and can be used for financial support is covered in the next
part of the study.
MAIN BODY
Section A
Question 1
1a. Analysis of goals and objectives of each company:
Green Core Group plc: Green Core Group plc is a major manufacturer of ready meals. They are
delighted to offer a large range of chilled, frozen and aromatic items to some very successful
retail and junk food customers in the UK.
Strategic goals-Corporate goals are the general image targets for the organization: they describe
what the corporation will do to try to fulfill its purpose (Brief and Peasnell, 2013). Usually,
strategic targets are a form of progress target, such as launching new products, boosting sales, or
attracting more customers of the company's producer. The organization below has such priorities
as continues to follow:
The corporation's plan to raise demand in a growing food industry concentrated on three major
components: extending its product proposal and encouraging buyers to purchase more. By
driving sales through a joint supply chain, growing value throughout their businesses, as well as
doing as much for consumers, the company's strategy is to further enhance our importance to our
consumers. The achievement of the business target of the company based on three key
capabilities: nutritional safety, core staff, integrity of Green core, and firm's performance. A

large and competent organization named Green Core, undergirded by a mutual commitment to
doing trade, is active in executing this strategy.
Hilton food group plc- The industry has been a dynamic business with strong principles for a
prolonged period of time. The skilled picture of accomplishment is what attracts its consumers.
And their trust in longer partnerships has propelled their development in corporations. The
interest of the organization is to make that the business partners of the business surpass their
rivals. Total Teamwork is the organization's focus as a business. The loyalty, determination and
willingness of company to do everything it can to have its employees succeed. One work, one
purpose, one goal exchanged. Organization workers are at the heart of all the organization does.
The fully understand legacy has always been distinctive and significant. The values of the
corporation discuss the ways in which they think about themselves as an organization and how
they act as citizens. Company employees serve as relationships associates, based on shared
values and existing tactics. Such views are at the centre of our culture.
Premier food plc- The aim of the group assures them the perfect food that business consumers
love, healthy food that is simple to process and accessible in multiple ways, what they are now
doing regardless. That's why consumers see the products in almost 94% of German homes as a
whole. The organization sells big brands and excellent goods, and its goal is to illustrate how the
nutrition company is at the centre of how this is achieved effectively by a partner (Hellmann,
2013). The company works on the design of a truly beautiful operating site. The shared values of
the company include a common choice mechanism for employees and help to inspire them in the
way they perform jobs, and also force each other to introduce them into daily operations.
Important progress has also been made in the last 3 months in the implementation of the
organization's values and goals throughout the company, increasing improvement of cooperation
and connectivity.
1 b
Performance analysis of three companies:

Green core group plc-

Interpretation:
ROE using Net income (%)-
Analyze-It can be claimed on the grounds from the above graph that Green Core Company relies
on profits grew in 2019 and 2020. This indicates that the productivity of producing return with
the above market is increasing dramatically. In another hand, the success of Hilton Business in
2019 and 2020 is stable, which indicates that they will achieve greater earnings per share. This
can be examined, in the sense of Premier food plc, how overall efficiency is too poor relative to
all other firms.
ROCE (%)

Analysis- On the grounds of the aforementioned table, it can be claimed that Green core group
plc has a 19.12 percent greater return mostly on costs incurred relative to other firms. Besides
this, it can be claimed that the proportion of Hilton food plc has been reduced by 2.96 percent in
2020. The efficiency of Premier food plc is low relative to all firms, close to the above figure,
and this is attributed to increased capital expenditures.
Net profit margin:
Analyze: With respect to Green core plc, it can be calculated that their quality is evaluated by a
large margin in 2020 relative to 2019. In addition to this, owing to increased prices, Premier food
plc suffered a poor operating profit of -5.18 percent. In all 3 years, and the success of Hilton food
group plc, it is a positive indication.
Gross margin-
Analyze: In all 3 years, Green core group plc and Premier food parent company have each had
the same operating profit. And Premier Food plc is better than most firms in a favorable manner.
But at the other hand, in contrast to the both, the efficiency of Hilton food group plc is low.
That's because of increased sales prices and reduced earnings (Guilding, 2014).
EBIT-
Analyze: In every year which demonstrates their efficacy, Hilton food group plc is prepared to
accommodate their operating income and tax constants. In another side, in 2019, Green core
group plc and Premier food plc experienced downward trend and their output was efficiently
improved in 2020.
Collection period:

Analyze- In the sense of the gradual process, it can be mentioned that, relative to both firms,
Premier food plc is sufficient to reimburse its debt in much less duration. In another hand, it
takes too long time for the Hilton food company to recoup its debt. Along with Green core plc, in
2020 relative to 2019, Green core plc continued to minimize time for recovering the debts in
much less period.
Credit period:
Analyze- Only Green core food plc and Hilton food plc get an equivalent trade credit, the latter
of which paid off their loans at the same rate. Although Hilton foodstuff plc takes some time to
settle its debts.
Current ratio:
Analyze: The optimum ratio is 2:1 and we can figure out of the preceding map that Green core
group plc is capable of handling this proportion in 2019. While other firms, leading to increasing
current obligations, are unable to do so.
Net assets turnover ratio
Analyze- On the grounds from the above chart, it can be claimed that since they are capable of
handling their properties with less trouble and costs, Hilton food group plc has a stronger
proportion. Although Premier Food plc has a better proportion, it notes that its investments
cannot be handled.
Non financial ratios:
Shareholder fund per employee-

Analyze- Among both firms, there is a major gap since Premier Food plc has better workplace
resources and it is about four times the other big organizations.
Total assets per employee-
Analyze- Among these businesses, there is a major gap because premium food plc has
productive employee resources but it is almost 5 times from the other two businesses.
1 c
On the grounds from the above cash advance of all three firms, it can be claimed that the best
ranked business is Green Core Group plc. Since they are achieving maximum profit and profits
in an efficient way, this business has the greatest potential value.
Investment incentive- An investment prospect is any situation in that you have the option to
purchase something that has an opportunity to benefit profit except in the chance (Lokanan,
2014). The trick to creating money by working is to understand the gains or how to control them
by capital. Green core plc has a larger potential for investment which can earn better returns in
the future months.
Section B
Question 2
2a
"In reality, the very continued presence of financial services was its term "internal attributes
through which funds are generated by the specific framework. These are spending or raising
capital primarily obtained from a business leading to funding, like loan given as exception where
by banking firms. The site of financial data is corporate approach, disposal of asset and thorough
managing of cash flow.
Retained earnings-Residual earnings/earnings provided in the financial statements are regarded
as an intrinsic source of corporate finance on the basic presumption that they will be a business's
final revenue. Retained earnings may be defined as profits which persist after stockholders of the

inventory have been paying dividends (Ozturk and Coskun, 2014). Aside from extended
contracts and commitments, residual profits are a shorter origin of company finance where no
compulsory maturity exists. Like borrowing money, deferred earnings are also not characterized
by a fixed commitment on recurring fees or interest charges.
Selling Real Assets-The sale of capital property is yet another external stream of funding. When
a business that owns the properties and still earns cash is directly used to meet the needs for
borrowing, we deem it an inherent form of funds from the accumulated other comprehensive
income (Chen and Jermias, 2014). These would serve as lengthier finance on the basis of the
form of assets offered. Keep in mind that property ownership, houses or industrial equipment
will lead to funding for lengthier and wider purposes. In addition, it is advisable to regularly
check for lists of fixed assets and identify assets that are otherwise neglected or out of reach, etc.
This share will be published as long as an actual incident happens, and there is less slippage of
asset values.
EXTERNAL SOURCES OF FINANCE- The word 'external sources of funding' simply reflects
the basic nature of funding. The primary economic indicators are securities, preferred stock,
securities, lending securities, venture capital, borrowing, employment purchases, guaranteed
loans, cash credit, etc. Compared to the residual money created internally in the context of
business activities, various data believe funds donated outside the company.
Equity Shares: A prominent form of slide is common opinion for big corporations. Not all
companies have a choice and are governed by a number of regulations. The distribution of
ownership is a significant feature of stock portfolios, thus limiting the rights of current owners to
that extent.
Debentures: Debenture/debt instruments are another common form of finance used for
companies who favor borrowing over equity. Lenders are believed to be a smarter method to
lend than shares. It really doesn't share power with the holders. That is because the actual interest
rate charged to the profit recipient is tax-free. The equilibrium of a debt risk system is similar to
the challenges of investment funds. It is then marketed to the broader public and must therefore
comply with the rules necessary. Consequently, mortgage bonds entail some chances of
problems but are not backed by all of the firm's profits.

Term Loans-The criteria for term loans are very similar to loans instruments, but just don't
require sufficient issuance costs and are provided by either a bank. It is not the question of the
receiver. To assess the company can pay its debt; a comprehensive analysis of the business and
financial plans of the business is taken out by a personal loan. These loans are covered by these
assets as well.
Preferred Shares- Preferred assets and debt holdings provide the attributes of such assets. They
are known to have been favored even if, taking into account the allocation at the repayment stage
of dividends and stock contributions, they had priority over ordinary shares (Bhimani and
Willcocks, 2014). Dividend distributions shall be made on preferred shares of a kind known as
joint preferential capital until the same time as they are not revoked. The fees for these deliveries
might be late, but they might also be overlooked.
2b
Green core plc will use interest income from the sources of financing listed earlier. That's
because their financial position is strong enough that if they accept it, there will be no extra
expense to pay for the acquisition of funds. This funding source could influence investors as
follows:
Current investments are reported under the investors' equity section of the financial statements,
whereas the income financial statements details the RE changes over the year (Saeidi and Prasad,
B.2014).
A company's investor worth is computed by deducting net debt from its asset value. Shareholder
equity represents the balance left out by investors after a business has paid off certain their
commitments.
CONCLUSION
In the above-mentioned article, it was reported that aspects of accounting and finance play a
critical role in any business administration. Businesses run on money, and we will not have a