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Mosaic PLC is a British apparel retail chain with shops across England and Wales. The company is best known for its members program that allows

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.

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