PFA1

PFA

PFA

Introduction

Ted Bakers plc is a British-based clothing retail company. The managing director of Ted Baker, Ray Kelvin launched its first store in 1988 at Glasgow. Ted Bakers over the time has grown considerably and is now also operating in Australia, New Zealand, United States, Canada, Norway, Greece, Spain, Netherlands, Belgium and also the British Isles.

The company board of directors consist of:

David Alan Bernstein (69), he is the Non-executive chairman of Ted.

Raymond Stuart Kelvin (57), he is the Chief Executive of Ted.

Lindsay Dennis Page (54), she is the Finance Director of Ted.

Ronald Stewart (65), he is the Senior Independent Non-Executive Director of Ted.

Anne Sheinfield (47), she is the Non-Executive Director of Ted.

Financial Overview of the company

Ted Baker plc's financial position on 26 January'2013 can be regarded as satisfactory. The data shows that the revenue earned by the company as at the mentioned date amounts to £254,466,000. It can also be observed that the operating profit earned was around £29,514,000. The profit for the period of the company amounted to £21,597,000.

The company's property, plant and equipment as at that date is reported to be £45,412,000. The non-current assets amounted to £6,873 and the working capital is £47,105,000. The non-current liabilities amounts to £497,000 and can be described as a relatively small figure. Hence, the net asset worth of Ted Baker plc amounts to £98,893,000. The entire financing has been financed by the shareholders' equities of £98,893,000.

Ted Baker plc is considering further market expansion of the company. In this regard, the company analysts believe that an acquisition is likely to benefit this cause. Hence, Ted Bakers plc is considering acquisition of French Connection plc.



Profile of the target company

French Connection is one of the most recognised fashion brands on the high street. It is known to be operating in more than thirty countries world wide. French Connection was conceived in 1972.

Financial Overview of the company

The financial position of French Connection has been extracted from their consolidated statement of comprehensive income and consolidated statement of financial position. The revenues earned by French Connection as at January 2013, amounts to £197300000. The gross profit earned by the company is £94600000. The incurred an operating loss of £9.1 million. The company incurred a net loss of £10.5 million as at January 2013.

The comprehensive statement of financial position as at January 2013 shows that the intangible assets of French Connection amount to £0.4 million. The property, plant and equipment of the company are worth £5.7 million. Their investments in joint ventures amount to £3 million. The deferred tax assets of the company are £4.4 million. Hence, the total non-current assets of the company amount to £13.5 million. The current assets of French Connection include inventories which are worth £41.5 million. It also includes cash and cash equivalents of £28.5 million. Trade and other receivables recorded for the period are around £23.7 million. The derivative financial instruments are around £0.1 million. Hence, the total non-current assets amount to £93.8 million which makes the total assets of French ...