20190215-Advanced Financial Accounting & Reporting (Chee Jia Lih)

Assignment
Project Topic: Interpretation of Financial Statements between ABR

Holdings Limited and Breadtalk Group Limited
Module: Plymouth University
Subject: ACF305SA Advanced Financial Accounting & Reporting
Glass Code: Part Time
Student’s Name: Chee Jia Lih
Student ID: G1640733Q
Date of Submission: 31st March 2019
Lecturer: Mr. Fredrick Cabanes
Table of Contents
Contents Page
1.0 Introduction of company profiles…………………………………………
2.0 Analysis of the Financial Statements……………………………………….
3.0 Evidence……………………………………………………………………….
4.0 Recommendation………………………………………………………….
5.0 Conclusion…………………………………………………………………
6.0 References………………………………………………………………
7.0 Appendix………………………………………………………….............
1.0 Introduction & Backgrounds
1.1 Introduction
This report presents the investigation of two public limited companies which are ABR
Holdings Limited and Breadtalk Group Limited. Firstly, to analyse and compare both
companies’ financial statements and profit & loss in the aspects of performance and
position in Food & Beverage industry by using vertical and horizon analysis and ratio
analysis in year of 2017 and 2016. Secondly, to analyse both companies’ cash flow
statements with a segmental analysis method. Lastly, recommendations will go
through to justify the best investment between these two companies.
Base Reference Country
This report is produced from the standpoint of the business norms and perceptions in the
client’s own country and covers a large number of issues which the client must consider
when planning overseas or export developments in world markets.
This report provides market, financial and industry data on each of the 205 world markets
and once this data is viewed, and target countries selected, the client can proceed to a more
detailed analysis of individual world markets.
Each of the following chapters address particular facets of business activity and each of
these facets are important in every overseas market. Once a client has focused on a
particular overseas market then a Country Report (or a Country & Cities Report) on that
particular market can be obtained and this will provide the same information headings as
found in the following chapters. In this way a client can compare his home industry and
market situation with that of an overseas market and thereby business planning can be more
realistically undertaken
evaluation of it’s financial position by using relevant financial ratios.
1.2 Backgrounds
These two public limited companies are ABR Holdings Limited and Breadtalk Group
Limited. A detailed description of the company’s operations and business divisions. A
detailed analysis of both companies’ strengths, weaknesses, opportunities and threats.
The reason why I choose ABR as the competitor of Breadtalk because ABR has a big
gap to improve itself and its business growth is quite rapidly. Breadtalk has become a
distinctive brand in Singapore because it has proved to be an efficient model on rapid
expansion. Based on its current market price which translates to a price-to-book ratio of
1.8 times, ABR appears inexpensive in comparison to the industry average of 3.5 times.
We believe that ABR is an investment-worthy candidate that could add stability to one’s
portfolio, in view of the group’s healthy business coupled with a robust balance sheet and
decent dividend payout. remains one of the market leaders in the western casual
ABR Holdings Limited
ABR Holdings Limited is a F&B company which based in Singapore. It is also an

investment holding company. Established in 1978, the company is the first franchise
owner for manufacturing of Swensen’s ice cream in Singapore. ABR also engaged in
the operation of casual dining restaurant in Asia and Oceania. It has more than 25
outlets in Singapore and Malaysia. The segmentations of ABR include restaurants and
confectionery which under the brands of Swensen’s, Earle Swensen’s Yogen Fruz,
Hello Kitty Orchid Garden, Season Confectionery & Bakery, Season Café, Tip Top,
Sticky Wings and Chilli Padi. It also owns chocolate retails of The Coco Trees which
under the subsidiary of Focus Network Agencies.
SWOT Analysis
Strengths: Weakness:
• Wide range of products offering • High employee turnover rate
• Introduced the use of autonomous • Lack ambitious of outlets expansion
robot to move dishes •
• Mobile application platforms enable •
customers to get latest news and
exclusive offers
• Provide food delivery service
Opportunities: Threats:
• Local business collaboration to • Competitive pressure of new product
increase business’s growth launched
• Lowering cost of new products • High cost pressure in operating
• Enhance products range expenses
• Consolidate restaurants and outlets to • Low barriers to entry in F&B industry
increase mileage
• Change in law and regulations of F&B
industry
Breadtalk Group Limited
Breadtalk Group Limited is a Singapore based food and beverage company which
incorporated in 2000. It is also an investment holding company. Breadtalk was
founded by the Chariman, Dr. George Quek who has more than 30 years of
experience in F&B industry. Today, it has close to 1000 outlets with more than 7000
employees in 16 countries. Breadtalk started out business of manufacturing and
retailing breads such as Breadtalk, The Icing Room and Toast Box. Breadtalk also
operates in different segmentations which are food atrium, restaurants and franchise.
The food atrium segment is made up of food courts for example, Food Republic. The
restaurant segment involved of Din Tai Fung, Station Kitchen and Cosmopolitan
Café.
SWOT Analysis
Strengths: Weaknesses:
• Unique branding • High cost of products
• Diversification of F&B offerings • High cost of individual kitchen in every
• Selling wide selection of products outlet
• Retail outlets located at strategic • Excessive focus on Chinese market
places such as MRT stations with expanded to 1000 more outlets
Opportunities: Threats:
• Increase more outlets in more • Food safety scandals
countries • Competitors sell low product prices
• Innovate new products • High operation fees in China’s
• Upgrade into premium segment expansion
• Invest in technology to improve
productivity
2.0 Analysis of the Financial Statements
2.1 Critical Analysis
Dddddd
2.2 Evaluation of Analysis
2.2.1 Horizontal Analysis
Horizontal analysis, or trend analysis is the process of comparing the historical

financial statement over series of accounting periods, such as ratios or line items
derived from the information. This method is to identify ABR and Breadtalk’s
financial performance, as well as investigate any numbers in the financial statement
are unusually decrease or increase in comparison of 2017 & 2016. A detailed
investigation of the reason will be given for the difference.
Current Assets:
At the end of FY2017, the total current assets of ABR reduced 19% while Breadtalk
increased 8.8% (from $211 million to $230 million). In ABR, the cash and cash
equivalents are mostly responsible for this change as fixed deposit account reduced
$29 million which almost 50% from previous year. This is because the fixed deposit
matured at the end of 2016 and pledged to banks for banking facilities granted to the
group. In Breadtalk, the significant increase was due to the prepayment account where
there was rose by 40.4%.
In addition, the investment securities of Breadtalk decreased about 25% from 2016
Non-Current Assets:
2.2.2 Vertical Analysis

Vertical analysis, sometimes called common size financial statement which is the
method of comparing the financial statement of ABR and Breadtalk in each line item
listed in percentage. On an income statement, the line items express as a percentage of
revenue, while the line items on a balance sheet express as percentage of total assets
or liabilities.
2.2.3 Ratio Analysis

Ratio analysis is a useful method to indicate of a company’s financial performance. It
can be used to evaluate current operation and to compare the company’s financials
against other company. Ratio analysis is a quantitative analysis and comparison of
ratio which are retrieved from the company’s current and historical financial
statements. Financial ratios are stated as percentage. Besides that, ratio can interpret
the company’s financial statements by determining company’s financial condition
whether is improving or deteriorating. There are four types of ratio analysis which are
liquidity and efficiency, solvency, profitability, and market prospects. We are using
this ratio analysis to analyse ABR and Breadtalk’s financial performances.
1.Liquidity and Efficiency – Liquidity is used to measure ABR and Breadtalk’s ability
to pay off their current obligations when fall due by using their companies’ current
assets.
a.Working Capital
Working capital analysis is one way to evaluate the total liquidity of ABR and
Breadtalk. It can tell how financial health of both companies’ operation. It is not a
ratio, but rather it is calculated in amount. Working capital is the amount when current
liabilities subtracted by current assets.
ABR has a total capital of $56 million in 2017 and $75 million in 2016. Although,
ABR has positive working capital in both year but it still shown a reduce trend. While,
Breadtalk has a -$26 million in 2017 and -$4 million in 2016.
In theory, the more working capital, the less liquidity difficulties of a company.
Hence, ABR has enough funds to meet its short-term obligations while Breadtalk has
negative working capital which mean it has trouble in meeting its short-term
obligations with its current assets.
b.Current Ratio
Current ratio is to measure the liquidity of ABR and Breadtalk by determining
whether their business able to meet the short-term obligations. It is different from
working capital because current ratio provides a quantitative of the amount when
current assets divided by current liabilities.
In 2017, ABR has 4.13 and 5.82 in 2016. It’s a good for ABR as its management was
managing efficient capital. In general, if the ratio > 1 is considered good for the
company, if the ratio < 1 which mean the company is facing a problem situation at
hand. As we can see that Breadtalk has a ratio with less than 1 in both year although
its short-term debt is reducing however Breadtalk has . This will make Breadtalk more
risky to new potential creditors. Apparently, ABR was in a better position to pay off
its debts.
a. Quick Ratio
b. Accounts Receivable Turnover
c. Inventory Turnover
d. Accounts Receivable Period
e. Inventory Period
f. Total Asset Turnover
2.Solvency – To measure the stability of ABR and Breadtalk and their ability to pay
the debt
a.Debt and Equity Ratio
ABR has a debt ratio of 21.04% in 2017 and 14.55% in 2016 which was a slightly
increased about 6.49%. However, the difference is negligible because ABR has more
than 4 times assets as it has liabilities. This is a result of ABR’s ability to repay debt
to its creditors as its ratios are considered as relatively low. ABR has better debt ratios
than Breadtalk who has a ratio of 71.20% and 71.45% in respectively.
In equity ratio part, ABR has 78.96% in 2017 and 85.45% in 2016. While Breadtalk
has 28.80% in 2017 and 28.46% in 2016. As we can see, ABR has higher equity ratios
than Breadtalk which implies ABR was conservatively managed. Company with a
higher equity ratio always pay less interest, therefore, ABR has positive cash flows for
future growth and dividends pay. It has no problem to obtain loan from financial
institutions. This has left ABR’s with such a large portion of the cash flow in
comparison to its competitors. Hence, ABR should not has problem in solvency issue.
However, a low debt ratio may also indicate that the company has an
opportunity to use leverage as a means of responsibly growing the
business that it is not taking advantage of.
3.Profitability – To show that how well ABR and Breadtalk utilized their resources to
generate profits from their operations.
a.Gross Profit Margin
ABR has
a. Net Profit Margin

b. Return on total assets
c. Return on owners’ equity
d. Earnings per share
4.Market Prospects – Investors of ABR and Breadtalk use this method to determine
what they may receive in earnings from the investments and to predict the future stock
trend.
a. Price-earnings ratio
b. Dividend yield
7.0 Appendix
7.1 Horizontal Analysis

Financial Statements
For the Year Ended as at 31 December 2017
$ ’000 $ ’000 Horizontal Analysis
Description 2017 2016 Amount Percent
Assets
Non-current assets
Property, plant and equipment 24,924 22,113 2,811 12.7%
Investment properties 3,168 3,350 (182) (5.4%)
Intangible assets 16,878 278 16,600 5,971.2%
Investments in subsidiaries - - - -
Investments in equity-accounted 68 - 68 0.0%
investee
Held-to-maturity financial assets - - - -
Available-for-sale financial 35 35 0 0.0%
assets
Loans to subsidiaries - - - -
Loans to equity-accounted 9,157 - 9,157 0.0%
investees
Other asset 381 - 381 0.0%
Total non-current assets 54,611 25,776 28,835 111.9%
Current assets
Inventories 2,727 2,405 322 13.4%
Trade and other receivables 14,531 7,107 7,424 104.5%
Fixed deposits 31,212 60,603 (29,391) (48.5%)
Cash and bank balances 25,399 21,174 4,225 20.0%
Total current assets 73,869 91,289 (17,420) (19.1%)
Total assets 128,480 117,065 11,415 9.8%

Equity and Liabilities
Equity
Share capital 43,299 43,299 - 0.0%
Other reserves (2,211) (82) (2,129) (2,596.3%)
Accumulated profits 57,402 56,327 1,075 1.9%
Equity attributable to owners 98,490 99,544 (1,054) (1.1%)
of the company
Non-controlling interests 2,963 491 2,472 503.5%
Total Equity 101,453 100,035 1,418 1.42%
Non-current liabilities
Deferred tax liabilities 2,982 1,353 1,629 120.4%
Provision 1,142 - 1,142 0.0%
Other liabilities 4,995 - 4,995 0.0%
Total non-current liabilities 9,119 1,353 7,766 574.0%
Current liabilities
Trade and other payables 15,191 12,334 2,857 23.2%
Provisions 1,293 1,944 (651) (33.5%)
Borrowings 142 176 (34) (19.3%)
Tax payable 1,281 1,223 58 4.7%
Total current liabilities 17,908 15,677 2,231 14.2%
Total liabilities 27,027 17,030 9,997 58.7%
Total equity and liabilities 128,480 117,065 11,415 9.8%

Assets
Non-current assets
Property, plant and equipment 169,097 180,663 (11,566) (6.4%)
Investment properties 39,463 22,984 16,479 71.7%
Intangible assets 6,089 6,433 (344) (5.3%)
Investment securities 72,068 72,878 (810) (1.1%)
Investment in subsidiaries - - - -
Investment in associates 26,682 27,033 (351) (1.3%)
Investment in joint ventures 10,040 8,234 1,806 21.9%
Other receivables 1,107 1,413 (306) (21.7%)
Due from related corporations - - - -
Deferred tax assets 2,559 2,749 (190) (6.9%)
Total non-current assets 327,105 322,387 4,718 1.5%
Current assets
Investment securities 12,886 17,222 (4336) (25.2%)
Inventories 9,721 9,806 (85) (0.9%)
Trade and other receivables 57,543 57,472 71 (0.1%)
Tax recoverable 280 - 280 0.0%
Prepayments 6,771 4,824 1,947 40.4%
Due from related corporations 1,128 1,094 34 3.1%
Amounts due from non- 525 509 16 3.1%
controlling shareholders of
subsidiaries (non-trade)
Cash and cash equivalents 141,245 120,589 20,656 17.1%
Total current assets 230,099 211,516 18,583 8.8%
Total assets 557,204 533,903 23,301 4.4%

Current liabilities
Trade and other payables 90,326 86,404 3,922 4.5%
Other liabilities 78,710 69,612 9,098 13.1%
Provision for reinstatement costs 15,846 14,417 1,429 9.9%
Due to related corporations 3,881 3,903 (22) (0.6%)
Loan from a non-controlling 200 200 - 0.0%
shareholder of a subsidiary (non-
trade)
Short-term loans 19,237 7,215 12,022 166.6%
Current portion of long-term 37,864 24,238 13,626 56.2%
loans
Tax payable 10,660 9,854 806 8.2%
Total current liabilities 256,724 215,843 40,881 18.9%
Other liabilities 9,392 11,385 (1,993) (17.5%)
Notes payable 75,000 75,000 - 0.0%
Loan from a non-controlling 508 549 (41) (7.5%)
trade)
Long-term loans 50,533 74,857 (24,324) (32.5%)
Deferred tax liabilities 4,576 4,324 252 5.8%
Total non-current liabilities 140,009 166,115 (26,106) (15.7%)
Equity attributable to owners of the company

Share capital 33,303 33,303 - 0.0%
Treasury shares (460) (587) (127) (21.6%)
Accumulated profits 98,933 93,966 4,967 5.3%
Other reserves 3,216 5,328 (2,112) (39.6%)
Non-controlling interests 25,479 19,935 5,544 27.8%
Total equity 160,471 151,945 8,526 5.6%
Total equity and liabilities 557,204 533,903 23,301 4.4%

Consolidated Statement of Comprehensive Income
For the Year Ended 31 December 2017 & 2016
$ ’000 $ ’000 Increase (Decrease)
Revenue 117,990 103,925 14,065 13.5%
Cost of sales 66,285 57,816 8,469 14.6%
Gross profit 51,705 46,109 5,596 12.1%
Other income 1,962 2,590 (628) (24.2%)
Expenses
Selling, distribution and outlet 30,752 28,080 2,672 9.5%
expenses
Administrative expenses 14,752 12,758 1,994 15.6%
Other expenses 125 1,116 (991) (0.9%)
Finance costs 35 6 29 483.3%
Share of results of equity- 300 6 294 4,900%
accounted investee, net of tax
Profit before tax 7,703 6,733 970 14.4%
Income tax expense 951 1,122 (171) (15.2%)
Profit for the year 6,752 5,611 1,141 20.3%
Other comprehensive income:
Currency translation differences 334 234 (568) (242.7%)
arising on consolidation
Other comprehensive 334 234 (568) (242.7%)
(loss)/income for the year, net
of tax
Total comprehensive income 6,418 5,845 573 9.8%
for the year
Profit attributable to:

Owners of the Company 6,228 5,410 818 15.1%
Non-controlling interests 524 201 323 160.7%
Total comprehensive income attributable to:
Owners of the company 5,871 5,664 207 3.7%
Non-controlling interests 547 181 366 202.2%
Total comprehensive income 6,418 5,845 573 9.8%
for the year
Earnings per share for the year attributable to owners of the Company
Basic (cents) 3.1 2.69 0.41 15.2%
Diluted (cents) 3.1 2.69 0.41 15.2%
$ ’000 $ ’000 Increase (Decrease)
Revenue 599,747 614,995 (15,248) (2.5%)
Cost of sales 266,465 277,508 (11,043) (4.0%)
Gross profit 333,282 337,487 (4,205) (1.2%)
Other operating income 33,178 29,540 3,638 12.3%
Interest income 2,234 1,162 1,072 92.3%
Distribution and selling 241,674 256,323 (14,649) (5.7%)
expenses
Administration expenses 80,850 75,389 5,461 7.2%
Interest expense 5,420 5,931 (510) (5.6%)
Profit before tax and share of 40,750 30,546 10,204 33.4%
results of associates and joint
venture
Share of results of associates 883 1,960 1,077 54.9%
Share of results of joint venture 1,097 1,130 (33) (2.9%)
Profit before tax 40,964 29,716 11,248 37.9%
Income tax expense 11,047 12,119 (1,072) (8.8%)
Owners of the company 21,848 11,436 10,412 91.0%
29,917 17,597 12,320 70.0%
Other comprehensive income

Items that may be reclassified subsequently to profit or loss
Net gain on available-for-sale 15 - 15 0.0%
financial assets
Foreign currency translation 1,656 594 1,062 178.8%
Other comprehensive income 1,641 594 1,047 176.3%
for the year, net of tax
Total comprehensive income 28,276 17,003 11,273 66.3%
for the year

Owner of the company 20,207 10,842 9,365 86.4%
28,276 17,003 11,273 66.3%
Earnings per share (cents)
Basic 7.76 4.07 3.69 90.7%
Diluted 7.75 4.06 3.69 90.9%
7.2 Vertical Analysis
$ ’000 $ ’000 Common Size Percent
Description 2017 2016 2017 2016
Assets
Non-current assets
Property, plant and equipment 24,924 22,113 19.4% 18.9%
Investment properties 3,168 3,350 2.5% 2.9%
Intangible assets 16,878 278 13.1% 0.2%
Investments in subsidiaries - - 0.0% 0.0%
Investments in equity-accounted 68 - 0.1% 0.0%
investee
Held-to-maturity financial assets - - 0.0% 0.0%
Available-for-sale financial 35 35 0.0% 0.0%
assets
Loans to subsidiaries - - 0.0% 0.0%
Loans to equity-accounted 9,157 - 7.1% 0.0%
investees
Other asset 381 - 0.3% 0.0%
Total non-current assets 54,611 25,776 42.5% 22.0%
Current assets
Inventories 2,727 2,405 2.1% 2.1%
Trade and other receivables 14,531 7,107 11.3% 6.1%
Fixed deposits 31,212 60,603 24.3% 51.8%
Cash and bank balances 25,399 21,174 19.8% 18.1%
Total current assets 73,869 91,289 57.5% 78.0%
Total assets 128,480 117,065 100% 100%

Description 2017 2016 2017 2016
Equity
Share capital 43,299 43,299 33.7% 37.0%
Other reserves (2,211) (82) (1.7%) 0.1%
Accumulated profits 57,402 56,327 44.7% 48.1%
Equity attributable to owners 98,490 99,544 76.7% 85.0%
of the company
Non-controlling interests 2,963 491 2.3% 0.4%
Total Equity 101,453 100,035 79.0% 85.5%
Deferred tax liabilities 2,982 1,353 2.3% 1.2%
Provision 1,142 - 0.9% 0.0%
Other liabilities 4,995 - 3.9% 0.0%
Total non-current liabilities 9,119 1,353 7.1% 1.2%
Current liabilities
Trade and other payables 15,191 12,334 11.8% 10.5%
Provisions 1,293 1,944 1.0% 1.7%
Borrowings 142 176 0.1% 0.2%
Tax payable 1,281 1,223 1.0% 1.0%
Total current liabilities 17,908 15,677 13.9% 13.4%
Total liabilities 27,027 17,030 21.0% 14.5%
Total equity and liabilities 128,480 117,065 100% 100%

Description 2017 2016 2017 2016
Assets
Non-current assets
Property, plant and equipment 169,097 180,663 30.3% 33.8%
Investment properties 39,463 22,984 7.1% 4.3%
Intangible assets 6,089 6,433 1.1% 1.2%
Investment securities 72,068 72,878 12.9% 13.7%
Investment in subsidiaries - - 0.0% 0.0%
Investment in associates 26,682 27,033 4.8% 5.1%
Investment in joint ventures 10,040 8,234 1.8% 1.5%
Other receivables 1,107 1,413 0.2% 0.3%
Due from related corporations - - 0.0% 0.0%
Deferred tax assets 2,559 2,749 0.5% 0.5%
Total non-current assets 327,105 322,387 58.7% 60.4%
Current assets
Investment securities 12,886 17,222 2.3% 3.2%
Inventories 9,721 9,806 1.7% 1.8%
Trade and other receivables 57,543 57,472 10.3% 10.8%
Tax recoverable 280 - 0.1% 0.0%
Prepayments 6,771 4,824 1.2% 0.9%
Due from related corporations 1,128 1,094 0.2% 0.2%
Amounts due from non- 525 509 0.1% 0.1%
controlling shareholders of
subsidiaries (non-trade)
Cash and cash equivalents 141,245 120,589 25.3% 22.6%
Total current assets 230,099 211,516 41.3% 39.6%
Total assets 557,204 533,903 100% 100%

Description 2017 2016 2017 2016
Current liabilities
Trade and other payables 90,326 86,404 16.2% 16.1%
Other liabilities 78,710 69,612 14.1% 13.0%
Provision for reinstatement costs 15,846 14,417 2.8% 2.7%
Due to related corporations 3,881 3,903 0.7% 0.7%
Loan from a non-controlling 200 200 0.0% 0.0%
trade)
Short-term loans 19,237 7,215 3.5% 1.4%
Current portion of long-term 37,864 24,238 6.8% 4.5%
loans
Tax payable 10,660 9,854 1.9% 1.8%
Total current liabilities 256,724 215,843 46.1% 40.4%
Other liabilities 9,392 11,385 1.7% 2.1%
Notes payable 75,000 75,000 13.5% 14.0%
Loan from a non-controlling 508 549 0.1% 0.1%
trade)
Long-term loans 50,533 74,857 9.1% 14.0%
Deferred tax liabilities 4,576 4,324 0.8% 0.8%
Total non-current liabilities 140,009 166,115 25.1% 31.1%
Equity attributable to owners of the company

Share capital 33,303 33,303 6.0% 6.2%
Treasury shares (460) (587) (0.1%) (0.1%)
Accumulated profits 98,933 93,966 17.8% 17.6%
Other reserves 3,216 5,328 0.6% 1.0%
Non-controlling interests 25,479 19,935 4.6% 3.7%
Total equity 160,471 151,945 28.8% 28.5%
Total equity and liabilities 557,204 533,903 100% 100%

$ ’000 $ ’000 Common size Percent
Description 2017 2016 2017 2016
Revenue 117,990 103,925 100% 100%
Cost of sales 66,285 57,816 56.2% 55.6%
Gross profit 51,705 46,109 43.8% 44.4%
Other income 1,962 2,590 1.7% 2.5%
Expenses
Selling, distribution and outlet 30,752 28,080 26.1% 27.0%
expenses
Administrative expenses 14,752 12,758 12.5% 12.3%
Other expenses 125 1,116 0.1% 1.1%
Finance costs 35 6 0.0% 0.0%
Share of results of equity- 300 6 0.3% 0.0%
accounted investee, net of tax
Profit before tax 7,703 6,733 6.5% 6.5%
Income tax expense 951 1,122 0.8% 1.1%
Profit for the year 6,752 5,611 5.7% 5.4%
Other comprehensive income:

Currency translation differences 334 234 0.3% 0.2%
arising on consolidation
Other comprehensive 334 234 0.3% 0.2%
(loss)/income for the year, net
of tax
Total comprehensive income 6,418 5,845 5.4% 5.6%
for the year

Owners of the Company 6,228 5,410 5.3% 5.2%
Non-controlling interests 524 201 0.4% 0.2%

Owners of the company 5,871 5,664 5.0% 5.5%
Non-controlling interests 547 181 0.5% 0.2%
for the year
Earnings per share for the year attributable to owners of the Company
Basic (cents) 3.1 2.69 0.0% 0.0%
Diluted (cents) 3.1 2.69 0.0% 0.0%
$ ’000 $ ’000 Common size Percent
Description 2017 2016 2017 2016
Revenue 599,747 614,995 100% 100%
Cost of sales 266,465 277,508 44.4% 45.1%
Gross profit 333,282 337,487 55.6% 54.9%
Other operating income 33,178 29,540 5.5% 4.8%
Interest income 2,234 1,162 0.4% 0.2%
Distribution and selling 241,674 256,323 40.3% 41.7%
expenses
Administration expenses 80,850 75,389 13.5% 12.3%
Interest expense 5,420 5,931 0.9% 0.9%
Profit before tax and share of 40,750 30,546 6.8% 5.0%
results of associates and joint
venture
Share of results of associates 883 1,960 0.1% 0.3%
Share of results of joint venture 1,097 1,130 0.2% 0.2%
Profit before tax 40,964 29,716 6.8% 4.8%
Income tax expense 11,047 12,119 1.8% 2.0%
Owners of the company 21,848 11,436 3.6% 1.9%
29,917 17,597 5.0% 2.9%
Other comprehensive income

Items that may be reclassified subsequently to profit or loss
Net gain on available-for-sale 15 - 0.0% 0.0%
financial assets
Foreign currency translation 1,656 594 0.3% 0.1%
Other comprehensive income 1,641 594 0.3% 0.1%
for the year, net of tax
for the year

Owner of the company 20,207 10,842 3.4% 1.8%
28,276 17,003 4.7% 2.8%
Earnings per share (cents)
Basic 7.76 4.07 0.0% 0.0%
Diluted 7.75 4.06 0.0% 0.0%
7.3 Ratio Analysis
a. Liquidity and Efficiency
Ratios Formula Workings 2017 Workings 2016
Working Current Assets – $73,869 - $55,963 $91,289 - 75,612
Capital Current Liabilities $17,906 $15,677
Current Current Assets $73,869 4.13 $91,289 5.82
Ratio Current Liabilities $17,906 $15,677
Quick (Current Assets- ($73,869- 3.97 ($91,289- 5.67
Ratio Inventory) 2,727) 2,405)
Current Liabilities $17,906 $15,677
Accounts Revenue $117,990 8.12 $103,925 14.62
Receivable Closing Accounts $14,531 times $7,107 times
Turnover Receivables
Average Closing Accounts $14,531 44.95 $7,107 24.96
Collection Receivable ($117,990 days ($103,925 / times
Period Average Sales Per / 365) 365)
Day
Inventory Cost of Goods $66,285 24.31 $57,816 24.04
Turnover Sold $2,727 times $2,405 times
Closing Inventory
Inventory Closing Inventory $2,727 15.02 $2,405 15.18
Period Cost of Goods ($66,285 / days ($57,816 / days
Sold per day 365) 365)
Total Net Sales $117,990 0.92 $103,925 0.89
Asset Total Assets $128,480 times $117,065 times
Turnover
Working Current Assets – 230,099 – ($26,625) 211,516 – ($4,327)
Capital Current Liabilities 256,724 215,843
Current Current Assets 230,099 0.90 211,516 0.98
Ratio Current Liabilities 256,724 215,843
Quick (Current Assets- (230,099- 0.86 (211,516- 0.93
Ratio Inventory) 9,721) 9,806)
Current Liabilities 256,724 215,843
Accounts Revenue 599,747 10.42 614,995 10.70
Receivable Closing Accounts 57,543 times 57,472 times
Turnover Receivables
Average Closing Accounts 57,543 35.02 57,472 34.11
Collection Receivable ($599,747 days (614,995 / days
Period Average Sales Per / 365) 365)
Day
Inventory Cost of Goods 266,465 27.41 277,508 28.30
Turnover Sold 9,721 times 9,806 times
Closing Inventory
Inventory Closing Inventory 9,721 13.32 9,806 12.90
Period Cost of Goods (266,465 / days (277,508 / days
Sold per day 365) 365)
Total Asset Net Sales 599,747 1.08 614,995 1.15
Turnover Total Assets 557,204 times 533,903 times
b.Solvency
Debt Ratio Total Liabilities 27,027 21.04% 17,030 14.55%
Total Assets 128,480 117,065
Equity Total 101,453 78.96% 100,035 85.45%
Ratio Stockholders’ 128,480 117,065
Equity
Total Assets
Times Income before 7,738 221.09 6,739 1,123.17
Interest Interest and Tax 35 times 6 times
Earned Interest Expense

Debt Ratio Total Liabilities 396,733 71.20% 381,958 71.54%
Total Assets 557,204 533,903
Equity Total 160,471 28.80% 151,945 28.46%
Ratio Stockholders’ 557,204 533,903
Equity
Total Assets
Times Income before 46,170 8.52 times 35,647 6.01 times
Interest Interest and Tax 5,420 5,931
Earned Interest Expense
c.Profitability
Gross Gross Profit $51,705 43.82% $46,109 44.37%
Profit Net Sales $117,990 $103,925
Margin
Net Profit Net $6,752 5.72% $5,611 5.40%
Margin Profit/Income $117,990 $103,925
Net Sales
Return on Net $6,752 5.26% $5,611 4.79%
Total Profit/Income $128,480 $117,065
Assets Total Assets
Return on Net $6,752 6.75% $5,611 5.65%
owners’ Profit/Income $100,035 $99,222
equity Opening
Stockholders’
Equity
Earnings Net $6,752 $0.03 $5,611 $0.03
per share Profit/Income 200,995.734 200,995.734
Number of
Shares

Gross Gross Profit 333,282 55.57% 337,487 54.88%
Profit Net Sales 599,747 614,995
Margin
Net Profit Net 29,917 4.99% 17,597 2.86%
Margin Profit/Income 599,747 614,995
Net Sales
Return on Net 29,917 5.37% 17,597 3.30%
Total Profit/Income 557,204 533,903
Assets Total Assets
Return on Net 29,917 19.69% 17,597 12.02%
owners’ Profit/Income 151,945 146,424
equity Opening
Stockholders’
Equity
Earnings Net 29,917 $0.11 17,597 $0.06
per share Profit/Income 281,893.238 281,893.238
Number of
Shares
d. Market Prospects
Price- Market price $49.0 15.8 times $49.5 18.4 times
earnings per share $3.10 $2.69
Ratio Earnings per
share
Dividend Annual Cash $1.5 3.06% $1.5 3.03%
Yield Dividend $49.0 $49.5
Market price
per share

Price- Market price 22.3 times 42.6 times
earnings per share
Ratio Earnings per
share
Dividend Annual Cash
Yield Dividend
Market price
per share

20190215-Advanced Financial Accounting & Reporting (Chee Jia Lih)

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Assignment

Project Topic: Interpretation of Financial Statements between ABR

2.0 Analysis of the Financial Statements……………………………………….

Base Reference Country

evaluation of it’s financial position by using relevant financial ratios.

ABR Holdings Limited

ABR Holdings Limited is a F&B company which based in Singapore. It is also an

Breadtalk Group Limited

2.1 Critical Analysis

2.2 Evaluation of Analysis

2.2.1 Horizontal Analysis

Horizontal analysis, or trend analysis is the process of comparing the historical

2.2.2 Vertical Analysis

2.2.3 Ratio Analysis

a. Net Profit Margin

7.1 Horizontal Analysis

Total assets 128,480 117,065 11,415 9.8%

Total liabilities 27,027 17,030 9,997 58.7%

Total equity and liabilities 128,480 117,065 11,415 9.8%

Total assets 557,204 533,903 23,301 4.4%

Equity attributable to owners of the company

Total equity and liabilities 557,204 533,903 23,301 4.4%

Other income 1,962 2,590 (628) (24.2%)

Profit attributable to:

Other comprehensive income

Total comprehensive income attributable to:

Total assets 128,480 117,065 100% 100%

Total liabilities 27,027 17,030 21.0% 14.5%

Total equity and liabilities 128,480 117,065 100% 100%

Total assets 557,204 533,903 100% 100%

Equity attributable to owners of the company

Total equity and liabilities 557,204 533,903 100% 100%

Other income 1,962 2,590 1.7% 2.5%

Other comprehensive income:

Profit attributable to:

Total comprehensive income attributable to:

Other comprehensive income

Total comprehensive income attributable to:

Breadtalk Group Limited

Breadtalk Group Limited

Breadtalk Group Limited

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