The case study for this chapter is relatively short; it is intended to demonstrate some aspects of the trend analysis of financial statements in the context of real company results. Note that many of the points covered in this chapter are also examined in the extended case study presented in Chapter 14.

This case study examines some information taken from the annual report of BAA pic for the year ending 31 March 2001. BAA pic owns and runs seven airports in the UK, and has stakes in several others around the world. The following table presents extracts in respect of the most recent five years from the ten-year financial summary provided in the 2001 annual report.

Passengers served 2001 2000 1999 1998 1997 (in millions)
124.7 117.8 112.5 104.5 98.0 £m £m £m £m £m Sales turnover 2261 2 192 2013 1 679 1 373 Profit on ordinary activities before taxation 530 494 507 472 444 Taxation (129)
(115)
(115)
(203)
(iii:
Profit before dividends 398 259 398 277 296 Fixed assets 6 883 6 467 6457 5 995 4 963 Total assets less current liabilities 6 675 6 394 6221 5 495 4905 Creditors due after more than one year (1 836)
(1 877)
(1 987)
(1 756)
(1 444)
Shareholders' funds [total net assets]
4 839 4517 4234 3 739 3 461