FINANCIAL ANALYSIS ASSIGNMENT

Financial Analysis Assignment

Executive Summary

The UK pub market increased by an approximated 4% in 2006 to [pounds sterling]30.91bn at retail trading charges (rsp). The commerce encompasses the following markets: restaurants; very fast nourishment and takeaways; agreement catering and foodservice management; hotels; public houses; permitted clubs; and vacation camps/villages and caravan/camping sites. In 2006, the fastest-growing market was public dwellings, pursued by restaurants. However, all markets illustrated some development throughout the year. The pub commerce is equipping up for the Government's fuming ostracise, which will be presented over the UK by July 2007. The ostracise currently concerns in Scotland and its influence there proposes that large pubs assisting high volumes of good nourishment at appealing charges can advantage from it, whereas lesser pubs, with restricted nourishment capability and a bias in the direction of beer sales might suffer. To minimise the harmful influence of the fuming ostracise, numerous pub operators are evolving their flower beds and out-of-doors protected areas. Others aim to broaden the communal apply of their pubs in alignment to appeal new, casual dining customers, who actually bypass pubs because of tobacco smoke. In the present financial weather the promise for organic development for brewing and pub businesses is restricted and over the last year their supply market worth has stayed depressed. Consequently, the controllers of Greene King Plc have resolved that this is the right time for the business to make a large, strategic acquisition. The paper discovers an evaluation of Marston's Plc as a promise acquisition goal in the UK.

Table of Contents

Executive Summary2

Introduction4

A.Financial history4

Ratio Analysis6

Marston's Plc6

Greene King Plc10

Ratios Interpretation for both companies14

Summary Evaluation Of The Two Companies' Financial Performance17

B.Future Potential18

Conclusion23

Bibliography4

Appendices26

Financial Analysis Assignment

Introduction

Marston's is engaged in the operating managed, tenanted and leased public houses, brewing beer and wholesaling beer, wines and spirits primarily in the United Kingdom. The majority of Co.'s estate comprises community and food-led pubs with a local customer base offered through a range of operating formats. (after exceptional items) was 22.7 pence per share (2007: 27.9 pence per share).

Greene King is a holding company. Through its subsidiaries, Co. is engaged in operating managed, tenanted and leased public houses, brewing beer, and wholesaling beers, wines, spirits and soft drinks. Co.'s operations are divided into three main business segments: Pub Company, Pub Partners and Brewing company.

Pub Company covers the results of managed houses.

Pub Partners covers the results of tenanted houses.

Brewing Company covers brewing beer, marketing and selling.

Financial history

Overview

Marston's is engaged in the operating managed, tenanted and leased public houses, brewing beer and wholesaling beer, wines and spirits. Group turnover increased by 2.0% to £666.1 million, as the benefit of acquisitions offset like-for-like sales marginally below last year. Underlying operating profit reduced by 1.0% to £161.6 million and underlying basic earnings per share fell by 2.3% to 25.6 pence per share. Operating profit after exceptional items was £156.9 million, down 2.4% on the prior year, and basic earnings per share

Marston's PLC- Financial Highlights (In GBP as of 10/04/2008)

Total Revenue

666,100,000

EBITDA

119,200,000

Operating Income

148,600,000

Net Income

61,800,000

Total Assets

2,465,900,000

Current Assets

170,000,000

Total Liabilities

1,759,000,000

Current Liabilities

188,400,000

Long Term ...