FINANCIAL REPORT

Financial report



Financial Analysis - Comparison

Introduction

The purpose of financial analysis is to determine company's stability, solvency, liquidity and profitability. From investors perspective such evaluation is important in order to make investment decision. When analysts, investors or shareholders examine a specific company, their main focus is on income statement, balance sheet and cash flows, since it shows overall company's performance. On the basis of these statements, the entire comparison is prepared for better decisions.

The focus of this paper would be on two companies that are listed on London Stock Exchange. The discuss would be on Equity and Debt as part of the long term funding requirements of companies with respect to specific and relevant financial ratios.

Discussion

Companies that are selected for analysis are Burberry PLC and SuperGroup Plc, both companies belongs to retail clothing and fashion.

Overview of Burberry Plc

Burberry Group Plc is a world famous British company, which occupies the leading place for over 150 years for the production of clothing, accessories and perfumes of luxury in England. The company has its own spinning mill, which are patented materials for future wear Burberry. The company's founder was Thomas Burberry in1891 (Burberry Plc annual report 2012, p. 5).

Burberry Brands

Burberry has three main brand which are as followed:

Burberry Prorsum: This comprises of other brand base line

Burberry London : This brand consist of business wear items

Burberry Brit: This consists of most reasonable brand of Burberry brands i.e. on entry level pricing.

Financaial Highlights

2012 was Burberry Plc excellent momentum since company was not impacted with the external factors. Company in this year has focused much on their core strategies and significant investments in new products and market.

Growth in adjusted diluted EPS has improved with 26% i.e. 48.9p in 2011 to 61.6p in 2012. Total revenue in 2012 was £1,857m while in 2011 it was £1,501m. Retail revenue has also improved in 2012 with £1,270m while it was £962m in 2011. Wholesale revenue also increased with £478 while it was £441. Adjusted operating profit of the group increased to £376.9m from £301.1m. Though 2012 was very challenging years, but company managed to post excellent financial figures due to management and the board effective five strategies and decisions (Burberry Plc annual report 2012, p. 12).

Overview of SuperGroup Plc

SuperGroup is British international brand that has been involved in offering clothing and accessories. UK distinctive fashion retailer that operates in multi channel business via combination of Cult and Superdry standalone stores, e-Commerce, Superdry concessions and it also has international and UK wholesale operations. This group came into existence in 1985 by Julian Dunkerton and from that time, company has been involved in designing and selling a wide variety of men & women premium clothing under flagship brand along with their own brands including third party products as well. The purpose of this company brands are to provide international brand proposition targeting to discerning customers searching for unique stylish clothes (SuperGroup annual report 2012, p. 3).

SuperGroup Brands

Superdry brand is at heart of ...