Financial Information Analyse Report.

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Financial Information Analyses Report SAMPLE

For Morrison (w) PLC. (WRW.L) For the 52 weeks ended 2 February 2003



Written by Lin zhang


Company History

Morrison (w) PLC.was founded in 1899 by William Morrison, father of current chairman, Ken Morrison. From its origins as an egg and butter merchant in Bradford, West Yorkshire, the company developed into market stalls and on to counter service. Progress was such that in 1958, a small town centre shop was opened.  

In the 1960s, Morrisons was at the forefront of supermarket development, opening its first store, "Victoria", in Bradford in 1961. And In 1967, Morrisons became a public company and was more than 174 times over-subscribed as over 80,000 investors tried to purchase shares. The company has since achieved a 35 year unbroken track record of sales and profit growth and in April 2001 joined the FTSE 100 for the first time.

Today, the principal activity of the company is retail distribution. And Morrisons is the country's fifth largest supermarket chain, with an annual turnover of over 3.9 billion. There are 126 Morrisons supermarkets - from Erith in the South to Carlisle in the North, and across, Yorkshire, Lincolnshire, East Anglia, the Midlands, Lancashire, Cheshire, and into Wales. Morrisons has a 5.9% share in the UK's grocery market and is Britain's fastest growing supermarket chain.

The statement of Profit & Loss Account and balance sheet below for the 52 weeks ended 2 February 2003 show a substantial increase in both turnover and profits – the 36th successive rise since the company went public in 1967.

Consolidated Profit & Loss Account For the period ended 2nd February 2003

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Operating profit of £262m was 14.2% higher than last year. Property profits and interest receivable pushed pre-tax profit up to £277m, an increase of 13.8% compared to the £243m last year.

Consolidated Balance Sheet

The balance sheet remains extremely strong with no borrowings other than normal overdraft facilities and £166m of net cash. This was increased from £115m at the beginning of the year due to careful management of working capital and despite capital expenditure of £254m. Shareholders funds have raised from £1,114m to £1,253m an increase of 12.5%.

Financial Ratio Analysis

1: Profitability

Gross Profit Margin=1106.4/4288.5=0.258= ...

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