A&F dissertation section 3

Balance Sheet

Income Statement

Cash Flow Statement

Investment account

GP

non-current assets

ratios-efficiency

ratios-liquidity

profitability

ratios-gearing

investment

dividend

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Balance Sheet
At 30 June
In millions of UK£	2020	2019	2018	2017	2016
Assets
Non-current assets
Other intangible assets	101.1	102.3	100	100	100
Goodwill	805.9	805.9	792.2	792.2	792.2
Property, plant and equipment	19	17.4	11.6	9.5	9.6
Right-of-use assets	46.7	-	–	-	-
Investments in subsidiary undertakings	-	-	–	-	-
Investments in joint ventures and associates	152.1	189	234.1	213.1	255.9
Retirement benefit assets	3.5	62.6	58.7	13.6	8.1
Secured loans	1	1.4	1.9	-	-
Deferred tax assets	-	-	-	-	-
Trade and other receivables	1.3	1.5	3.1	2.3	1.6
Derivative financial instruments – swaps				-	11.8
Available for sale financial assets			3.1	3.5	0.8
	1130.6	1180.1	1202.8	1134.2	1183
Current assets
Inventories	5027.9	4824.3	4516.7	4475.4	4326.6
Secured loans	1.1	1.2	0.3	0.4	0.8
Trade and other receivables	84.9	223.6	226.8	204.5	149.6
Cash and cash equivalents	619.8	958.3	982.4	784.4	758
Derivative financial instruments – swaps				13.2	-
	5733.7	6007.4	5726.2	5477.9	5235
Total assets	6864.3	7187.5	6929	6612.1	6418
Liabilities
Non-current liabilities
Loans and borrowings	-200	-200	-191.1	-1.4	-171.5
Trade and other payables	-319.7	-413.5	-566.7	-596.9	-629.9
Lease liabilities	-36.1	-	-	-	-
Deferred tax liabilities	-2.4	-17.6	-25.3	-8	-10.5
Derivate financial instruments - swaps					-7.5
	-558.2	-631.1	-783.1	-606.3	-819.4
Current liabilities
Loans and borrowings	-117.7	-	-	-72.5	-6
Trade and other payables	-1305.4	-1587.9	-1462.4	-1534.2	-1513.5
Lease liabilities	-11.7	-	-	-	-
Current tax liabilities	-2.8	-99.5	-85.8	-71.1	-63.3
Provisions	-28.2	-	-	-	-
Derivative financial instruments – swaps				-5.8	-5.6
	-1465.8	-1687.4	-1548.2	-1683.6	-1588.4
Total liabilities	-2024	-2318.5	-2331.3	-2289.9	-2407.8
Net assets	4840.3	4869	4597.7	4322.2	4010.2
Equity
Share capital	101.8	101.7	101.3	100.8	100.4
Share premium	245.2	239.3	232.6	224.7	222.7
Merger reserve	1109	1109	1109	1109	1109
Total retained earnings	3382.9	3412.1	3147.3	2878.6	2578.9
Equity attributable to the owners of the Company	4838.9	4862.1	4590.2	4313.1	4001.3
Non-controlling interests	1.4	6.9	7.5	9.1	8.9
Total equity	4840.3	4869	4597.7	4322.2	4010.2
working capital

	2020	2019	2018	2017	2016
Continuing operations	£m	£m	£m	£m	£m
Revenue	3419.2	4763.1	4874.8	4650.2	4235.2
Cost of sales	-2804.9	-3678.9	-3865.9	-3718.2	-3434.8
Gross profit	614.3	1084.2	1008.9	932	800.4
Administrative expenses	-124.5	-183.1	-146.3	-132.8	-132
Profit from operations	493.4	901.1	862.6	799.2	668.4
Finance income	5.1	7.1	3.5	2.9	5.9
Finance costs	-35	-35.9	-48.6	-62.6	-64.1
Net finance costs	-29.9	-28.8	-45.1	-59.7	-58.2
Loss on disposal of joint ventures	0	-1.7	-	-	-
Share of post-tax profit from joint ventures	28.3	39.2	18.6	25.4	71.9
Share of post-tax profit from associates		-	-0.6	0.2	0.2
Profit before tax	491.8	909.8	835.5	765.1	682.3
Tax	-89.1	-170.4	-164	-149.1	-132
Profit for the year	402.7	739.4	671.5	616	550.3
Profit for the year attributable to the owners of the Company	399.7	740	671.2	615.8	550.3
Profit for the year attributable to non-controlling interests	3	-0.6	-0.2	0.2	-
Earnings per share from continuing operations
Basic	39.4p	73.2p	66.5p	61.3p	55.1p
Diluted	38.9p	72.3p	65.9p	60.7p	54.3p

	2020	2019	2018	2017	2016
	£m	£m	£m	£m	£m
Net cash inflow from operating activities	-121	361.3	514.3	388.6	652.9
Investing activities:
Purchase of property, plant and equipment	-7.5	-7.2	-7.5	-4	-6.1
Consideration, net of cash acquired, paid on acquisition of subsidiaries	-	-15.8	-	-	-
Proceeds, net of cash disposed of, from the disposal of subsidiaries	-	4.6	-	-	-
Increase in amounts invested in entities accounted for using the equity method	-31.2	-51	-58.6	-54.9	-33.6
Repayment of amounts invested in entities accounted for using the equity method	72.2	66.9	11.7	37.2	21.7
Dividends received from investments accounted for using the equity method	24.2	60.3	41.8	85.1	28.1
Proceeds from the disposal of investments accounted for using the equity method	-	18.6	-	-	-
Dividends received from subsidiaries	-	-	-	-	-
Interest received	3.5	5.1	2.9	2.5	2.6
Net cash inflow from investing activities	61.2	81.5	-9.7	65.9	12.7
Financing activities:			-	-	-
Dividends paid	-373.2	-452.3	-434.9	-321.7	-263.2
Distribution made to non-controlling partner	-8.5	-	-1.4	-	-
Purchase of own shares	-5.9	-21.7	-3.3	-3.6	-1
Proceeds from disposal of own shares	6	-	0.1	0.1	0.2
Proceeds from issue of share capital Loan repayments	-0.7	7.1	8.4	2.4	3.9
Loan repayments	-	-	-69.6	-105.6	-10.9
Drawdown of loans	-60	-	200	0.3	3
Cancellation of swaps	-14.1	-	-5.9	-	-
Net cash outflow from financing activities	-456.4	-466.9	-306.6	-428.1	-268
Net increase/(decrease) in cash and cash equivalents	-516.2	-24.1	198	26.4	397.6
Cash and cash equivalents at the beginning of the year	1136	982.4	784.4	758	360.4
Cash and cash equivalents at the end of the year	619.8	958.3	982.4	784.4	758

Investment In Unconsolidated Subsidiaries	2020	2019	2018	2017	2016
BARRATT DEVELOPMENTS	152.1	189	234.1	213.1	255.9
THE BERKELEY GROUP HOLDINGS	261.8	374.7	315	135	150
TAYLOR WIMPEY		55.3	48.3	50.9	50.3	27.1
PERSIMMON		2.1	3	3	3	3
				thomas

Investment In Unconsolidated Subsidiaries from 2016 to 2020

BARRATT DEVELOPMENTS

2020 2019 2018 2017 2016 152.1 189 234.1 213.1 255.9 THE BERKELEY GROUP HOLDINGS

2020 2019 2018 2017 2016 261.8 374.7 315 135 150 TAYLOR WIMPEY

2020 2019 2018 2017 2016 55.3 48.3 50.9 50.3 PERSIMMON

2020 2019 2018 2017 2016 2.1 3 3 3

Years

In millions of UK£

In millions of UK£		Revenue	Cost of Sales	Gross Profit	GP %
2020	£	3419.2	2804.9	614.3	17.97%
	Change £	-1343.9	-874	-469.9
	% change from PY	-28.21%	-23.76%	-43.34%
2019	£	4763.1	3678.9	1084.2	22.76%
	Change £	-111.7	-187	75.3
	% change from PY	-2.29%	-4.84%	7.46%
2018	£	4874.8	3865.9	1008.9	20.70%
	Change £	224.6	147.7	76.9
	% change from PY	4.83%	3.97%	8.25%
2017	£	4650.2	3718.2	932	20.04%
	Change £	415	283.4	131.6
	% change from PY	9.80%	8.25%	16.44%
2016	£	4235.2	3434.8	800.4	18.90%
	year	2020	2019	2018	2017	2016
	Revenue £m	3419.2	4763.1	4874.8	4650.2	4235.2
Cost of sales		2804.9	3678.9	3865.9	3718.2	3434.8

Revenue of Barratt Developments Plc (£m)

Revenue £m

2020 2019 2018 2017 2016 3419.2 4763.1000000000004 4874.8 4650.2 4235.2

Year

Revenue £m

Non-Current Asset
In millions of UK£		Property, Plant and Equipment	Goodwill and other intangible assets	Investments	Receivables
2020	£	19	907	152.1	1.30
	Change £	1.6	-1.2	-36.9	-0.20
	% change from PY	9.20%	-0.13%	-19.52%	-13.33%
2019	£	17.4	908.2	189	1.50
	Change £	5.8	16	-45.1	-1.60
	% change from PY	50.00%	1.79%	-19.27%	-51.61%
2018	£	11.6	892.2	234.1	3.10
	Change £	2.1	0	21	0.80
	% change from PY	22.11%	0.00%	9.85%	34.78%
2017	£	9.5	892.2	213.1	2.30
	Change £	-0.1	0	-42.8	0.70
	% change from PY	-1.04%	0.00%	-16.73%	43.75%
2016	£	9.6	892.2	255.9	1.60
In millions of UK£		Property, Plant and Equipment	Goodwill and other intangible assets	Investments	Receivables
2020	£	19	907	152.1	1.30
2019	£	17.4	908.2	189	1.50
2018	£	11.6	892.2	234.1	3.10
2017	£	9.5	892.2	213.1	2.30
2016	£	9.6	892.2	255.9	1.60

2020 2019 2018 2017 2016 0 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 0 0 0 0 0 2020 2019 2018 2017 2016 0 19 17.399999999999999 11.6 9.5 9.6 2020 2019 2018 2017 2016 0 907 908.2 892.2 892.2 892.2 2020 2019 2018 2017 2016 0 152.1 189 234.1 213.1 255.9 2020 2019 2018 2017 2016 0 1.3 1.5 3.1 2.2999999999999998 1.6

Efficiency	2020	2019	2018	2017	2016
Non current assets turnover	3.02	4.04	4.05	4.10	3.58
Inventories turnover	0.56	0.76	0.86	0.83	0.79
Receivable days	0	0	0	0	0
Payable days	-139	-122	-109	-120	-130
Inventories turnover period	654	479	426	439	460
revenue	3419.2	4763.1	4874.8	4650.2	4235.2
non curreent asset	1,130.60	1,180.10	1,202.80	1,134.20	1,183.00
current asset	5,733.70	6,007.40	5,726.20	5,477.90	5,235.00
total asset	6,864.30	7,187.50	6,929.00	6,612.10	6,418.00
COGS	2,804.90	3,678.90	3,865.90	3,718.20	3,434.80
Inventory	5027.9	4824.3	4516.7	4475.4	4326.6
trade receivable	1.3	1.5	3.1	2.3	1.6
trade payable	-1305.4	-1587.9	-1462.4	-1534.2	-1513.5

Non current assets turnover of Barratt Developments Plc

Non current assets turnover

2020 2019 2018 2017 2016 3.0242349195117639 4.0361833742903146 4.0528766212171599 4.0999823664256745 3.5800507185122568

Year

Non current assets turnover

Liquidity	2020	2019	2018	2017	2016
Current ratio	3.91	3.56	3.70	3.25	3.30
Acid test ratio	0.48	0.70	0.78	0.60	0.57
current asset	5733.7	6007.4	5726.2	5477.9	5235
current liability	1465.8	1687.4	1548.2	1683.6	1588.4
inventory	5027.9	4824.3	4516.7	4475.4	4326.6

Profitability	2020	2019	2018	2017	2016
ROCE	8.95%	16.40%	16.05%	16.01%	13.85%
Gross margin	17.97%	22.76%	20.70%	20.04%	18.90%
Net profit margin	14.43%	18.92%	17.70%	17.19%	15.78%
Asset turnover	62%	87%	91%	93%	88%
Return on shareholders’ funds	8.32%	15.21%	14.63%	14.28%	13.75%
PBIT	493.4	901.1	862.6	799.2	668.4
capital employed	5514.8	5493.2	5373.3	4991.9	4826.7
revenue	3419.2	4763.1	4874.8	4650.2	4235.2
gross profit	614.3	1084.2	1008.9	932	800.4
Profit for the year	402.7	739.4	671.5	616	550.3
Shareholders’ funds + non- current liabilities + short-term borrowings
nc liability	558.2	631.1	783.1	606.3	819.4
Loans and borrowings	117.7			72.5	6
Equity attributable to the owners of the Company	4838.9	4862.1	4590.2	4313.1	4001.3

Financial Gearing	2020	2019	2018	2017	2016
Capital gearing
Debt / Equity ratio
Interest cover
capital employed	5514.8	5493.2	5373.3	4991.9	4826.7
Equity attributable to the owners of the Company	4838.9	4862.1	4590.2	4313.1	4001.3
PBIT	493.4	901.1	862.6	799.2	668.4

Financial Ratio's: Investment

Dividend cover

Dividend payout

Earnings per share (eps)

Price / Earnings (P/E ratio)

Dividends	2020	2019	2018	2017	2016
Amounts recognised as distributions to equity shareholders in the year:					103.1
Special dividend for the year ended 30 June 2015 of 10.0p (2014: nil) per share					100
Interim dividend for the year ended 30 June 2016 of 6.0p (2015: 4.8p) per share					60.1
Total dividends distributed to equity shareholders in the year					263.2
Proposed final dividend for the year ended 30 June 2016 of 12.3p (2015: 10.3p) per share					123.3
Proposed special dividend for the year of 12.4p (2015: 10.0p) per share					125
The proposed final dividend and the special dividend are subject to approval by shareholders at the Annual General Meeting. The cost has been calculated based on the issued share capital at 30 June 2016 and has not been included as a liability at 30 June 2016.