The most recent financial statements are given below for Shepherds Hut plc. Shepherds Hut plc are a producer and supplier of luxury shepherds huts. Up until five years ago they were a family-owned business with all shareholders having been either family members or employees. However, they are now listed on the stock exchange and so the structure of the business has significantly changed. The two most senior directors of Shepherds Hut plc, Henry and Humphrey and their families are keen to remain the majority shareholders in the business and are determined not to lose control of the business. But they are also keen to expand the business over the next five years. The current share price for 2021 is 2.80 and the company paid a dividend of 0.18 per share. This compares with the previous year 2020 when the share price was 4.25 and a dividend of 0.25 was payable to shareholders. Income Statement of Shepherds Hut plc for the year ended 31 December 2021 2020 (000s) (000s) Revenue 4814 5614 Cost of Sales: Opening stock 1194 1227 Purchases 3939 3616 5133 4843 Less Closing stock 1763 1194 3370 3649 Gross profit 1444 1965 less Overhead Costs Salaries 278 397 Rental 85 127 Depreciation 92 108 Distribution costs 187 272 Telecommunications 56 90 Electricity, water, oil and gas 111 158 Research & Development 18 51 Marketing and sales costs 102 187 929 1390 Net profit before interest 515 575 Interest 156 53 Profit before Taxation 359 522 Taxation 193 292 Profit attributable to equity Shareholders 166 230

Statement of financial position of Shepherds Hut plc as at 31 December 2021 2020 (000s) (000s) Non-current assets Motor vehicles 221 162 Fittings 285 320 Land and buildings 360 227 866 709 Current assets Cash 5 61 Receivables 1259 1004 Inventory 1763 1194 3027 2259 Total assets 3893 2968 Current liabilities Bank overdraft 676 255 Trade payables 1370 1147 Taxation 215 332 2261 1734 Non-current liabilities Loans 200 130 200 130 Total Liabilities 2461 1864 Share capital: 1 nominal value 545 483 Retained profit 787 621 Revaluation reserve 100 0 Total equity 1432 1104 Total equity and liabilities 3893 2968

Extracts from the notes to the accounts: 1. A long-term loan amounting to 70,000 was repaid during the year and was replaced with a new loan of 140,000 repayable in 10 years time. 2. Land and Buildings were revalued in 2020 adding 60,000 to the value of Land giving a new value of 180,000 for Land and adding 40,000 to the value of Buildings to give a new valuation of 180,000 for Buildings. This gives a total of 100,000 as revaluation Reserves 2. Share capital: Shepherds Hut plc issued 62,000 new 1 shares in 2021.