Accounting and Finance for Managers: Financial Performance Analysis

This report presents a comprehensive analysis of the financial performance of Green Core Group plc, Premier Food plc, and Hilton Food Group plc. The analysis involves evaluating their goals, objectives, and financial performance using various ratios such as ROE, ROCE, profit margin, and others over a three-year period. The report critically assesses the companies' performance, identifies the best-performing company, and provides a justification based on the financial data. Furthermore, the report explores and evaluates the main types of internal and external long-term finance available to these companies, including their impact on stakeholders. The report concludes with a comparative assessment of the companies' financial health and investment opportunities, highlighting Green Core Group plc as the best-performing entity.

Accounting and finances for managers

Contents
INTRODUCTION...........................................................................................................................1
SECTION A.....................................................................................................................................1
Question 1........................................................................................................................................1
1a. Analysis of goals and objectives of each company...............................................................1
1b.Critically evaluate the performance of the three companies using the latest three years
financial and non-financial data to reach a conclusion to clearly identify the ranking of
performance.................................................................................................................................2
1c. Using information and results from tasks 1 and 2 above, put forward a short case justifying
the reasons why the best performing company..........................................................................11
SECTION B...................................................................................................................................11
Question 2......................................................................................................................................11
2a. Critically evaluate the main types of internal and external long term finance....................11
2b. Select one source of long term finance used by one of the company’s in the case study, to
explore how it affects the interests of existing stakeholders.....................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Accounting is considered as the procedures of recording monetary transactions that pertain
to business. Moreover, finance is regarded as money management as well as incorporates
practices like lending, investing, budgeting and others (Aalto and Varis, 2020). This report is
based upon three firms that are green core group plc, Premier food plc and Hilton Group Plc. In
addition to this, all three entities perform in respect of food industry as well as all have specific
objectives. It is divided into two parts where into initial part incorporates explained information
related to goals of all firms. Also, financial performance is analysed into comprehensive way
through assistance of several types of ratios. Into another part, information regarding several
forms of financial source are described which may be utilised for monetary assistance.
SECTION A
Question 1
1a. Analysis of goals and objectives of each company.
Green core group plc: It is considered to be one of the key producer of ready meals.
Moreover, they are very much leased for facilitating few of the United Kingdom’s famous
supermarket and fast food customers along with huge selection of sealed, frozen as well as
atmospheric foods.
Strategic Objectives: The wider picture main concerns for entity are business objectives. They
describe what firm would perform form accomplishing their intent. Moreover, the strategic
objectives are mainly some kind of success goals like launching new goods, enhancing revenue
or maximising entity’s market shares. Additionally, the firm have such goals which are discussed
below:
Within enhancing food marketplace, firm’s tactics for boosting demands that concentrated upon
three key prospects: Boarder their products proposition as well as grabbing the attention of
customers to purchase much. Moreover, the firm’s plan is to further strengthen their importance
towards their clients through enhancing revenue with help of shared supply chain, maximising
value all over its portfolios, with performing effectively for audiences (Balakrishnan, Prakash
and Ramesh, 2020). in addition to this, the attainment of firm’s business goals based upon four
main abilities, quality of food, core individuals, sustainable business. Also, the implementation
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of this plan incorporates a wide as well as understandable firm known as Greencore, underpinned
through shared enthusiasm to operate business.
Hilton food group plc: For longer time period, sector have become competitive business
along with stronger values. Moreover, the professional reputation for success is what draws its
customers. In addition to this, its trust into longer alliances has powered its raise into
multinationals. In addition to this, the firm’s intent is to develop that the corporate partners
exceeding its competitors. Additionally, the objectives of company as a corporation are Absolute
coordination. Also, the commitment, involvement and expectations for performing whatever they
may develop their staffs grow (BATCH, 2020). Along with this, one job, one aim, one shared
intent. The personnel of entity are into the core of whole firm does. The corporate national
heritage was always vital as well as differentiation. Apart from this, the principles of entity
means the ways in which it thought of themselves as firm and how it behaves as person. The
employees on firm depend upon common principles and developed tactics that act as partners
supporting allies. These attitudes are considered to be the heart of our society.
Premier food plc: The entity intent is to provide effective food which business customers desires,
food which is simple to cook, nutritious as well as available into various forms, that they are
related to perform anyhow. In addition to this, it is why consumers observe its brands in about
94% of whole British household parts. Additionally, it promotes well known brands as well as
effective goods as well as their aim is to represents how food agency is at heart and how
coordinators do it in successful way. The firm is concentrated upon developing effectual and
great operative sites. Also, the firms’ mutual principles facilitate staffs along with accumulative
choice procedures as well as facilitate to encourage them in such a way where they perform their
hobs and force each other to participate into day to day practices. Within the previous three
years, substantial growth was already formed across the adaption of firm’s principles as well as
priorities across entity, growing into collaboration as well as interaction with staffs.
1b.Critically evaluate the performance of the three companies using the latest three years
financial and non-financial data to reach a conclusion to clearly identify the ranking of
performance.
All three firms’ performance analysis
GREENCORE GROUP PLC
GREENCORE GROUP PLC 3/28/2020 3/30/2019 3/31/2018
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ROE using Net income (%) 34.66 4.55 1.72
ROCE using Net income (%) 19.12 4.8 2.58
Profit margin (%) 7.48 0.75 0.53
Gross margin (%) 33.84 30.23 31.12
EBIT margin (%) 6.73 2.04 1.84
Collection period (days) 26 34 30
Credit period (days) 54 50 47
Current ratio (x) 0.69 2.01 0.75
Gearing (%) 156.67 90.47 119.39
Net assets turnover (x) 2.06 1.81 1.49
Non-financial ratios 3/28/2020 3/30/2019 3/31/2018
Shareholders’ funds per employee 26 64 58
Total assets per employee 100 173 167
HILTON FOOD GROUP PLC
HILTON FOOD GROUP PLC 3/28/2020 3/30/2019 3/31/2018
ROE using Net income (%) 17.23 17.95 15.2
ROCE using Net income (%) 9.02 11.98 12.43
Profit margin (%) 2.38 2.63 2.52
Gross margin (%) 16.17 12.69 11.93
EBIT margin (%) 3.08 2.8 2.58
Collection period (days) 37 31 30
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Credit period (days) 54 50 47
Current ratio (x) 1.05 1.23 1.2
Gearing (%) 175.87 66.57 36.16
Net assets turnover (x) 3.58 5.56 6.53
Non-financial ratios 3/28/2020 3/30/2019 3/31/2018
Shareholders’ funds per employee ( 38 38 44
Total assets per employee 181 121 116
PREMIER FOODS PLC
PREMIER FOODS PLC 3/28/2020 3/30/2019 3/31/2018
ROE using Net income (%) 2.77 -3.51 0.76
ROCE using Net income (%) 3.37 1.16 2.94
Profit margin (%) 6.33 -5.18 2.55
Gross margin (%) 40.94 44.12 40.42
EBIT margin (%) 11.25 0.55 8.48
Collection period (days) 27 29 24
Credit period (days) 65 65 59
Current ratio (x) 0.98 0.78 0.78
Gearing (%) 64.91 105.83 106.9
Net assets turnover (x) 0.32 0.42 0.42
Non-financial ratios 3/28/2020 3/30/2019 3/31/2018
Shareholders’ funds per employee 404 230 234
Total assets per employee 729 533 540
Interpretation:
Return on Earnings utilising Net income (%):
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Analysis: based on above outline this can be expressed that return on income of Green
Core Company has expanded in year 2019 and 2020. This shows that there is critical
development in proficiency of creating return for above organization (Carlisle, Hux and
Zimmerman, 2020). On the opposite side, Hilton Company's exhibition is consistent in year 2019
and 2020 which shows that they can create better yield on value. With regards to Premier food
plc, it very well may be broke down that their presentation is too feeble contrasted with any
remaining organizations.
ROCE (%)
Examination based on above outline this can be expressed that there is Green core plc, who has
better yield on capital utilized contrasted with different organizations that is of 19.12%. Aside
from this, Hilton food plc this can be expressed that there proportion has been dropped in year
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2020 by 2.96%. Like above proportion, Premier food plc's exhibition is poor contrasted with the
two organizations and this is a direct result of higher capital costs.
Net profit margin:
Examine: regarding Green core group plc, it tends to be evaluated that their presentation has
been helped in year 2020 by gigantic edge when contrasted with year 2019. Also, Premier food
plc confronted negative net edge of - 5.18% because of higher measure of costs. Just as Hilton
food plc's exhibition s consistent in each of the three years that is a decent sign.
Gross margin
Analysis: Green core plc and Premier food plc both have same gross edge in every one of the
three years. Also, in relative way Premier food plc is better from different organizations. On the
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opposite side, Hilton food group plc's presentation is poor contrasted with both. This is so a
result of greater expense of deals and lower incomes.
EBIT
Hilton food group plc can deal with their income before interest and duty consistent in every year
that shows their proficiency. On different hands, Green core group plc and Premier food plc
confronted negative development in year 2019 and in year 2020 their presentation has been
expanded in a powerful way.
Collection period:
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. Hilton food group plc can deal with their income before interest and duty consistent in every
year that shows their proficiency. On different hands, Green core group plc and Premier food plc
confronted negative development in year 2019 and in year 2020 their presentation has been
expanded in a powerful way.
Credit period
Green core group plc and Hilton food plc, both have comparable credit period which the two of
them are paying their obligations in same time. While Hilton food group plc is setting aside
more measure of effort to pay their obligations.
Current Ratio
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The ideal current proportion is 2:1 and from above diagram, we can discover that Green core
group plc can deal with this proportion in year 2019. While rest of organizations can't do as such
because of higher current liabilities.
Net assets turnover ratio
Examine based on above table, this can be expressed that Hilton group plc has better proportion
due as they can deal with their resources in less time and cost. While head food plc is has lower
proportion that expresses that they can't deal with their resources.
Non financial ratios:
Shareholder fund per employee
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Analysis: form the above graph, it has been analysed that there is essential difference between all
three firms as premier food plc have effectual funds for staff as well as this is almost 4 time from
rest of two entities.
Total assets per employee
Analysis: From the above graph, it has been analysed that is essential difference within these
firms as premier food plc have appropriate assets for staffs as well as this is almost five times
among two entities.
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