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Balance Sheet and Annual Report Essay

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Abstract This report will analyse Greggs’ 2010 annual report on the purpose of evaluating the company’s current operating condition and providing suggestions of improvement to the company’s management team. According to ASB'S Statement of Principles for Financial Reporting, the selected information will be provided to the following users: shareholders, loan creditor group, analyst-adviser group, employees, customers, suppliers, government and the public. Then, based on the key ratio calculations, the company’s financial performance is to be evaluated from two parts: profitability analysis and liquidity analysis. For the profitability analysis, the profitability ratios go up. It is mainly because the sale increases through adding the …show more content…

Overall, the directors’ report provides enough information about earning per share and dividends to satisfy shareholders’ needs. The report shows those figures in detail, explains the reasons for the growth and provides a foreseeable further increase in the coming year. 1.1.2 Business performance In addition, shareholders’ interest is in business performance, which can be illustrated by revenue generation and management. They use the information to help them assess the business. (ASB'S Statement of Principles for Financial Reporting, 1999). The annual report provides positive results for 2010. • “Despite the tough trading conditions across the UK in 2010 the company grew total sales by 2.1 per cent compared with the equivalent 52 week period in 2009, including a 0.2 per cent increase in like-for-like sales.” (Annual Report and Accounts 2010, 2010; p8) • However, severer weather results in a slow growth “in the second half of the year, and particularly in the final quarter.” (Annual Report and Accounts 2010, 2010; p8) • The reasons for the increased revenue are: (Annual Report and Accounts 2010, 2010; p8) 1) Providing customers with exception promotion, based on their needs. 2) Take

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