Comment on the performance of Threads Limited from the viewpoint of a business considering supplying a substantial amount of goods to Threads Limited on usual trade credit terms.
Income statement for the year ended 31 December
|
|
Year before last |
Last year |
|
|
£000 |
£000 |
|
Sales revenue |
1,180 |
1,200 |
|
Cost of sales: |
(680) |
(750) |
|
Gross profit |
500 |
450 |
|
Operating expenses |
(200) |
(208) |
|
|
(66) |
(75) |
|
Operating profit |
234 |
167 |
|
Interest |
(-) |
(8) |
|
Profit before |
234 |
159 |
|
Taxation |
(80) |
(48) |
|
Profit for the year |
154 |
111 |
|
|
Year before last |
Last year |
|
|
£000 |
£000 |
|
ASSETS |
|
|
|
Non-current assets |
|
|
|
Property, plant and equipment |
702 |
687 |
|
Current assets |
|
|
|
Inventories |
148 |
236 |
|
Trade receivables |
102 |
156 |
|
Cash at bank |
3 |
4 |
|
|
253 |
396 |
|
Total assets |
955 |
1083 |
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
Equity |
|
|
|
£1 ordinary shares |
500 |
500 |
|
|
256 |
295 |
|
|
756 |
795 |
|
Non-current liabilities |
|
|
|
Borrowings – Bank loan |
- |
50 |
|
Current liabilities |
|
|
|
Trade payables |
60 |
76 |
|
Other payables and accruals |
18 |
16 |
|
Taxation |
40 |
24 |
|
Short-term borrowings – bank overdraft |
81 |
122 |
|
|
199 |
238 |
|
Total equity and liabilities |
955 |
1,083 |
Dividends were paid on ordinary shares of £70,000 and £72,000 in respect of the year before last and last year, respectively.
Comment on the performance of Threads Limited from the viewpoint of a business considering supplying a substantial amount of goods to Threads Limited on usual trade credit terms.
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