Financial Analysis of Greencore Group Plc

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THE FINANCIAL ANALYSIS OF
GREENCORE GROUP PLC

Contents
EXECUTIVE SUMMARY1
INTRODUCTION2
COMPANY SHARE PRICE3
CAPITAL STRUCTURE7
Total capital as of March 20108
Total capital as of March 20099
DIVIDEND POLICY10
FUTURE DIRECTION12
Conclusion13
Bibliography14
Company Share Price Information Bibliography15
Appendixes17

EXECUTIVE SUMMARY

In today’s climate it’s hard to find a company still making profits comparable to their previous financial year. Sustainable growth is hard to achieve for most global organisations, their debt’s are piling up as money is not as available as before so other means of generating profit are being thought of to try to reduce operating costs and increase profitability.

The truth of the matter is that the economic downturn in spending by consumer’s as well businesses is being felt worldwide in every economy. As a result of this meeting set goals and profit margin became harder which is some circumstances forced companies to try to reduce their losses which can become a catalyst for the sale of acquisitions that might be deemed as surplus to requirements in some circumstances. Greencore is no exception to the effects of this economic climate and it too went through some restructuring of some sort.

Through this project we analysed and tracked changes in Greencore Group over the last 12 months. We focused on the share price, capital structure, dividend policy, and future direction of the company in hope of getting a better understanding of their dealing and ethos.

INTRODUCTION

Greencore Group PLC engages in production and supply of convenience food and ingredients to customers, industrial, service markets and has a workforce of 7000 people based in Ireland, UK, continental Europe and the United States. The company function under two segment, convenience food and ingredients and related property. The convenience foods comprises of sandwiches, chilled prepared and soups, ambient sauces and pickles, cakes and desserts and Yorkshire puddings and incorporate the purchases and trading of gains, vegetable oils and import and distribution of cane and beet molasses. In addition to this its products through various brand names such as Aunt Bessie’s, Bisto, Burgundies, Green Valley, Heinz, Kiveton Kitchen and other known brand.

The Chairman of the company is Ned Sullivan, Chief Executive Officer is Patrick Coveney and the Chief Financial Officer is Tony Hynes.

Over the year have established an out-standing experience in customer brand and provide a selection of house and licensed brands. It has accommodated a UK nationwide chilled van distribution fleet so as to cater for individual outlets. Greencore malt and water was once incorporated as part of the company’s segment prior to sell out, as current issues have emerged that led to the exiting of the Malt and Bottle Water Business as due to deficit in profitability. The ingredients and related property segment that produces malt in Ireland, the United Kingdom and Belgium was associated with the action taken by the board to fulfil its objective as a business.

COMPANY SHARE PRICE

In this section of our analysis we will be looking at the share price for Greencore. We will analyse the highs and lows of each month and attempt to interpret the reasons for the increase/decrease in share price in relation to current affairs of the company. -------------------------------------------------

Share Price Monthly Summary|
Month| Average price| High price| Low price| Beta Volatility| November 2009| Average €1.42| High €1.53| Low €1.354| Beta Volatility €.05| December 2009| Average €1.41| High €1.48| Low €1.32| Beta Volatility €.04| January 2010| Average €1.36| High €1.427| Low €1.3| Beta Volatility €.04| February 2010| Average €1.32| High €1.388| Low €1.28| Beta Volatility €.03| March 2010| Average €1.34| High €1.39| Low €1.295| Beta Volatility €.03| April 2010|...
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