Business finance and legal service coursework(Write a report on the Essay

Business finance and legal service coursework(Write a report on the financial performance of a company in a particular sector) - Essay Example As a cascading effect the production activities suffered. There were reports of spare capacity which in turn resulted into massive employment cut during 2012. New exports reduced considerably. As a result the growth in the manufacturing sector or FMCG sector has fallen steeply during 2011 to 2012 (Chartered Institute Of Purchasing and Supply, 2 April, 2013). Manufacturing activities lifted a bit higher towards the end of 2012 but rate of expansion was marginal and weak. The reasons behind it were cost inflation acceleration in Eurozone and rise in average input price hitting an eight month high (Chartered Institute of Purchasing and Supply, January 2013). The downturn UK economy was suffering came to an end during December 2012 with level of production and new orders rising at a faster rates. Reportedly highest gains were made by Britain’s consumer goods producer. It has been predicted if the recoveries in the overseas market continue to build during then Britain exporters are expected to make out huge profit out of it (Chartered Institute of Purchasing And Supply, December 2012). ... The Company believes in growth through organic and international expansion. The company has grown so much in the short span due to great strategic planning. â€Å"Their ambition is to grow their group together EBIT margin by an average of 50bps per annum from2009-2013† (Britvic plc, n.d.). They follow an expansion of 2-3% every year. The company gives prime focus in closing distribution gaps in all routes to market. Britvic started acquiring independent still business since 2010.They acquired Friute business in France with leading brand such as Teissiere and Pressade. This was followed by the prime acquisition of A.G. Barr during September 2012. The company’s excellent performance during this short span demonstrates their ability to grow in business and create shareholders wealth (Britvic plc, n.d.). An Overview of Financial Performance Data and Ratios: SNAPSHOT OF FINANCIAL POSITION OF BRITVIC PLC NAME FORMULA CALCULATION 2012 2011 Net Profit Ratio (Net Profit/ Net Sal es) 0.061703822 0.061937984 Return On Capital Invested (Adjusted Net Profit/Capital Employed) 0.118501529 0.118545994 Price Earnings Ratio (Market Value Of Share/ Earning Per Share) 15.2941176 Data Insufficient Current Ratio (Current Asset/Current Liability) 1.02425876 0.984615385 Capital Gearing Ratio (Equity Share Capital/ Fixed Interest Bearing Funds) 0.327546089 0.327983252 Debt Equity Ratio or Long Term Borrowing Ratio (Total Long Term Debts/ Shareholders Fund) 8.439577039 9.055292259 (Tracy, 2012) The above table gives a snapshot of the company’s financial position during the two fiscal years. The net profit ratio didn’t suffer any change within the two fiscal years. But the revenue had