Mosaic PLC is a British apparel retail chain with shops across England and Wales. The company is
Question:
Mosaic PLC is a British apparel retail chain with shops across England and Wales. The company is best known for its member’s program that allows multi-item purchases at heavily discounted prices. The company has both online and high street presence but has recently reduced the latter to focus on their internet sales and social media marketing.
Income Statements for Mosaic PLC for the year ended 31 March
| 2022 | 2021 |
| £m | £m |
Sales Revenue | 1,980 | 1,860 |
|
|
|
Costs of Goods Sold | 1,030 | 990 |
Gross Profit | 950 | 870 |
|
|
|
Staff Costs | 400 | 380 |
Rent and Rates | 210 | 200 |
Depreciation | 140 | 130 |
Other Costs | 50 | 40 |
Operating Profit (PBIT) | 150 | 120 |
|
|
|
Finance Costs | 30 | 25 |
|
|
|
Profit (loss) before Taxation | 120 | 95 |
Taxation | 25 | 20 |
Profit (loss) for the period | 95 | 75 |
Statements of Financial Position for Mosaic PLC as of 31 March
| 2022 | 2021 |
| £m | £m |
Non-current Assets |
|
|
Property, Plant & Equipment | 1,400 | 1,320 |
Purchased Goodwill | 420 | 370 |
Total Non-current Assets | 1,820 | 1,690 |
|
|
|
Current Assets |
|
|
Inventories | 420 | 380 |
Trade Receivables | 60 | 40 |
Cash at Bank | 390 | 380 |
Total Current Assets | 870 | 800 |
Total Assets | 2,690 | 2,490 |
|
|
|
Equity |
|
|
Share Capital (Equity Shares of £2 each) | 1100 | 1100 |
Retained Earnings | 350 | 300 |
Total Equity | 1,450 | 1,400 |
|
|
|
Non-current Liabilities |
|
|
Bank Loan | 950 | 850 |
Total Non-current Liabilities | 950 | 850 |
|
|
|
Current Liabilities |
|
|
Trade Payables | 270 | 220 |
Taxation Payable | 20 | 20 |
Total Current Liabilities | 290 | 240 |
Total Equity and Liabilities | 2,690 | 2,490 |
|
|
|
Additional Information:
As of 31 March 2020; Capital Employed was £2,250 (m) and Inventories were £360 (m).
Required
Compare the financial performance of Mosaic PLC with the financial performance of the key players in the sector and state whether its performance is typical of the performance of the Apparel Retail industry in the UK over the last two years. You need to use financial information on relevant companies operating within the industry to support your discussion.
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston