Financial Analysis of Premier Investments and Smiggle Expansion

This report provides a comprehensive analysis of Premier Investments Limited, focusing on environmental and management accounting principles. Part A examines the company's environmental and social impacts, both positive and negative, and identifies four key GRI disclosures relevant to stakeholders. It also compares Premier Investments' environmental performance information with that of Myer Holdings Limited and assesses the company's adherence to GRI guidelines. Part B investigates the feasibility of Smiggle and Peter Alexander expanding into new territories, utilizing break-even analysis and the balanced scorecard approach to evaluate financial and non-financial metrics. The report explores the costs associated with ongoing operations, cost behavior, and the practicality of break-even analysis as a screening tool. Overall, the report offers insights into Premier Investments' financial performance, sustainability practices, and strategic expansion plans, drawing on various academic sources and industry data.

Running head: ACCOUNTING AND FINANCIAL MANAGEMENT
Accounting and Financial Management
Name of the Student:
Name of the University:
Author Note:

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Executive Sumary
The present study briefly explains about environmental accounting and management accounting.
Entire study had been divided into two equal parts where the first part highlights about positive
and negative impact of social and environmental reporting for the case study company named as
Premier Investments Limited. The study even brings out four key GRI disclosures that are
beneficial for the stakeholders while working for the company. Comparison had been done
between Premier Investments Limited and Myer Holdings Limited in terms of environmental
performance. The second part explains the condition or feasibility whether Smiggle and Peter
Alexander can open new stores in new territories such as north America, Asia and UK. For that,
it is important to apply break-even analysis for analyzing the relationship between fixed costs
and variable costs. Break-even analysis can take into account only the quantitative or financial
metrics. Balanced scorecard takes into account both financial as well as non-financial metrics
and this approach had been broadly explained in the study keeping all the perspectives in mind
such as financial, customer, internal business process and learning & growth.
Table of Content

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s
Executive Sumary............................................................................................................................2
Introduction......................................................................................................................................5
Part A...............................................................................................................................................5
General idea of the environmental and social impacts (positive and negative) of Premier
Investments Limited operations.......................................................................................................5
Positive environmental impact of Premier Investments Limited................................................5
Negative environmental impact of Premier Investments Limited...............................................6
Positive social impact of Premier Investments Limited..............................................................6
Negative social impact of Premier Investments Limited.............................................................7
Recognizing and converse four key GRI disclosures that are probable to be most significance to
the stakeholders of Premier Investments Limited...........................................................................7
Comparing excellence and deepness of environmental performance information as provided by
Premier Investments with the performance of Myer Holdings Limited........................................10
Assessing whether prevalent conformity with the GRI guidelines by Australian retail trade that
promote potential investors, present shareholders and other stakeholders of Premier Investments
Limited...........................................................................................................................................13
Part B.............................................................................................................................................15
Recognizing probable major costs linked with ongoing operations of Smiggle and Peter
Alexander.......................................................................................................................................15

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Approximation of the cost behavior (fixed, variable or otherwise) of each of the main costs
identified........................................................................................................................................15
Critically assess whether use of break-even analysis would be practical and dependable screening
tool for Premier Investments Limited as they assess the attractiveness of opening up new stores
in new territories............................................................................................................................16
Balanced Scorecard of Premier Investments Limited...................................................................17
Conclusion.....................................................................................................................................18
Reference List................................................................................................................................19

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Introduction
The current segment explain the concept of environmental accounting as well as
management accounting by taking into consideration the case company named as Premier
Investments Limited (Williams, 2014). This company is listed in Australian stock exchange and
established in the year 1987. The company was formed as an investment vehicle that helps in
maximizing level of growth especially to look after capital returns to shareholders by acquiring
control over strategic shareholdings within specific period of time. Premier Investments Limited
operates in retailing, importing and distribution activities. Under Premier Investments Limited,
there are different brand names like Peter Alexander, Just Jeans, Smiggle, Jay Jays as well as
Dotti and The Just Group (Bebbington, Unerman & O'Dwyer, 2014).
Part A
General idea of the environmental and social impacts (positive and negative) of Premier
Investments Limited operations
Positive environmental impact of Premier Investments Limited
 Packaging stewardship has positive impact upon environment where Premier
Investments Limited remains dedicated towards managing and reducing the impact of
trade activities. The company even had submitted a 5 year Action Plan that briefly
highlights objectives that concern to optimization of packaging for reducing impact of
environment and packaging recycling (Uno & Bartelmus, 2013).

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 Waste and recycling has positive impact upon environment where Premier Investments
Limited engages in continuing their operations in sustainable way especially in network
stores, distribution centers and support centers at the same time (Bebbington, Unerman
& O'Dwyer, 2014).
 Energy efficiency has positive impact upon environment where Premier Investments
Limited identifies the significance of energy efficient and low environment activities that
affect the lighting systems in adherence to innovative and improved lighting standards. It
helps at the time of managing with consumption of energy in all relevant stores
(Suomala, Lyly-Yrjänäinen & Lukka, 2014).
Negative environmental impact of Premier Investments Limited
It is believed by the company that they will get support from their employees where they
can make strategies to reduce environmental issues and increase in the efficiency of business that
will drive customer and connect with the employees for getting positive outcome or results.
Here, the company decides to reduce environmental issues and act in a responsible and ethical
way. Therefore, the environmental issues can be anything related to waste and energy attributes
and packaging (Otley & Emmanuel, 2013).
Positive social impact of Premier Investments Limited
 Smiggle community partnerships have positive impact on the society where Premier
Investments Limited builds upon strong community partnership with the global partners.
 Premier Investments Limited engages in supporting centre charity programs or events.
 Premier Investments Limited believes in attracting new talents as well as retention of
existing employees by providing them with rewards and recognition (monetary and non-

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monetary). The company employs more than 6000 staff members in 4 countries
(Messner, 2016).
 Workplace safety has positive social impact on society. To that, Premier Investments
Limited is dedicated towards workplace prevention injury and lost time. The company
engages in creating a society where all human resources should feel accountable for all
types of wellbeing and protection agenda (Bebbington, Unerman & O'Dwyer, 2014).
Negative social impact of Premier Investments Limited
Several social issues are faced by Premier Investments Limited that relates to safety,
developmental activities and security. There are various strategies that are used by Premier
Investments Limited to reduce the social issues as far as possible so that the company become
the best place to work and employee value their presence and build their career (Manfredi et al.,
2015).
Recognizing and converse four key GRI disclosures that are probable to be most
significance to the stakeholders of Premier Investments Limited
In this question, it is required to explain four key GRI disclosures that will likely have
relevance to the stakeholders of Premier Investments Limited (Lukka & Vinnari, 2014). In order
to explain the disclosures in detail, it is important to know about GRI (Global Reporting
Initiative). GRI framework is one of the frameworks that act as a generally accepted framework
that reports on aspects such as social, economic and environment. This particular reporting
framework in actual comprises of general and sector-specific content that help large number of
stakeholders in the company where they have to take an account from generally accepted or
applicable reporting system for measuring the sustainability pattern of Premier Investments

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Limited. To that, it is found certain aspects where Premier Investments Limited selects over
introducing reporting against full GRO framework from the outset. It is clearly defined by
Premier Investments Limited about the scope of reporting and displays the plans in order to
expand in the reporting period.
The GRI disclosures are taken from 5.1 Sustainability reporting where each of the disclosures
is properly mentioned. The first two disclosures are taken from 5.1 Sustainability report and
other two disclosures are taken from 5.2 sustainability report. The four key GRI disclosures are
mentioned below with proper justification:
Materiality concept
The first GRI disclosure is the materiality concept that means Premier Investments Limited
need to cover all the topics that has direct impact on society, environment and economy
(Hamilton, 2016). The materiality concept needs to be adopted by Premier Investments Limited
in their operations so that the business does not withhold any critical information from investors,
owners, regulators and lenders. Materiality concept is one of the disclosures in Global Reporting
Initiative where Premier Investments Limited needs to find ways to include in their sustainability
reporting systems. The materiality focus of sustainability reports increases demand for
transparency of the actual impact of Premier Investments Limited operates from and besides
investors and society as a whole.
Inclusiveness of stakeholders
The second GRI disclosure is the inclusiveness of stakeholders that means Premier
Investments Limited need to identify stakeholders and inform them about any changes that are

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planned in the business or operations. Stakeholder Inclusiveness is one of the disclosures of
Global Reporting Initiative that will help Premier Investments Limited for defining reporting
content that is material to the organization and the stakeholders. Global Reporting Initiative was
introduced as the logical flow of activities on how and when to make use of these disclosures in
the reporting process. By using this disclosure, the stakeholder inclusiveness means to get access
to ongoing and unstoppable process after complying with report content principles.
Sustainability context
The third GRI disclosure is the sustainability context that means Premier Investments
Limited need to report certain aspect of sustainability to act ethically and responsibly for getting
the benefits in the long run (Bebbington, Unerman & O'Dwyer, 2014). Premier Investments
Limited believes in providing highest returns to their stakeholders and gives importance to them
by respecting and these shareholders are employees, customers and suppliers.
Completeness of information
The forth GRI disclosure is the completeness of information or data where the company
speaks about material topics and indicators as it has significant impact on society, environment
and economy as a whole (Gray, Adams & Owen, 2014). Information is taken from the annual
report of Premier Investments Limited and GRI exposure framework so that there is proper
relevance of actions that are highlighted above in form of key GRI disclosures. Premier
Investments Limited needs to engage in bringing improvements so that they have the ability to
compete with the competitors who even operates in the same sector.

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Comparing excellence and deepness of environmental performance information as
provided by Premier Investments with the performance of Myer Holdings Limited
On making the comparison between both Myer Holdings Limited and Premier
Investments Limited, it is found out that Premier Investments Limited purchased 10.8% in
department stores owner of Myer Holdings Limited (Fullerton, Kennedy & Widener, 2014). To
that, the shareholders of Premier Investments Limited had even backed out their present stake
from Myer Holdings Limited. Furthermore, Premier Investments Limited had a control of more
than 42% of the listed groups and fortune that had last value that amounts to $2.4 billion. This
company even can be considered as sharpest retail strategists that are present in Australia now.
The company had even invested or controls over 25% of the listed Breville Group that works
under the brand name Breville Group and Kambrook. After comparing Premier Investments
Limited with Myer Holdings Limited, it was highlighted that Myer Holdings Limited showcase
the torrid conditions where the retailers are interested to fashion and experienced in the lead-up
and aftermath of the specific period time (Fullerton, Kennedy & Widener, 2013). After looking
at the bottom line, it can be seen that increased traction changes the policies to gain shares of
Myer Holdings Limited.

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Figure: Share Price of Premier Investments Limited
(Source: Bebbington, Unerman & O'Dwyer, 2014)

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Figure: Share Price of Myer Holdings Limited
(Source: Deegan, 2014)
On analysis, it is noted that the share price of Premier Investments Limited had
underperformed and there is decline in the shares at 7% in the Australian share market. Premier
Investments Limited should step in and add Oroton to its stable not so long after taking an 11%
stake in company named as Myer Holdings Limited. Premier Investments Limited operates as a