Managing Financial Resources

http://www.halfordscompany.com/investors/halfords-explained

The aim of this programme is to help deliver Group sales in excess of £1bn by the end of
financial year 2016”.

Income statements for the years-ending 28
th
March 2014 and 29
th
March 2013 for
Halfords Group plc:

2014 (£m)

2013 (£m)
Revenue 939.7

871.3
Cost of sales (435.5) (394.2)
Gross profit 504.2

477.1
Operating expenses (426.6) (400.0)
Operating profit 77.6

77.1
Finance costs (5.2)

(6.3)
Finance income 0.2 0.2
Profit before income tax 72.6

71.0
Income tax expense (17.1) (18.3)
Profit for the year 55.5 52.7

Statements of Financial Position (balance sheet) as at the year-ending 28
th
March 2014 and 29
th

March 2013 for Halfords Group plc:

2014 (£m)

2013 (£m)
Non-current assets 441.8 433.1
Current assets

Inventories (stock) 150.2

133.2
Trade and other receivables 52.8

53.8
Other items 5.3

9.8
208.3 196.8
Total assets 650.1 629.9
Current liabilities

Borrowings (10.3)

(4.3)
Trade and other payables (159.5)

(144.9)
Other items (21.5)

(33.9)
(191.3) (183.1)
Non-current liabilities

Borrowings (94.6)

(114.2)
Other items (38.1)

(33.9)
(132.7)     (148.1)
Total liabilities (324.0)     (331.2)
Net assets 326.1     298.7
Total equity 326.1     298.7

Required

You are required to conduct an analysis of the financial statements of Halfords Group plc for the
years-ending 2013 and 2014 and prepare a fully referenced report (1,500 words) based on the
tasks set out in the table below (the word count excludes the reference list, exhibits and
appendices).

Assessment tasks and criteria Marks
1. Write an introduction to your report including:
(i) the aims of the report
(ii) a short overview of the main activities of Halfords Group plc
10%
2. For Halfords Group plc’s years-ending 2013 and 2014 calculate:
(i) Three profitability ratios
(ii) Three solvency / liquidity ratios
10%
3. Write an analysis comparing the financial performance and the financial position of
Halfords Group plc in 2013 and 2014, based on the ratios you calculated in task 2.
40%
4. Identify and discuss possible users of your analysis and their differing information
requirements
10%
5. Provide a short discussion on the importance of supplementing financial analysis
with non-financial considerations
10%
6. Write a conclusion to your report including a summary of your main findings 10%
7. Referencing and report presentation 10%