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The Wallbeans Group is a conglomerate of several small companies, all of which specialize in the manufacture and sale of a wide range of
The Wallbeans Group is a conglomerate of several small companies, all of which specialize in the manufacture and sale of a wide range of popular processed foods. The company's shares have been trading steadily on the Johannesburg Stock Exchange for the past few years. As a result, a prospective investor has hired you as a financial consultant to provide an exper opinion on whether they should go ahead with the investment. You believe that a good starting point would be an analysis o the company's financial statements using ratio analyses. The consolidated Statement of Comprehensive Income and Statemen of Financial Position of the group for the year ending 29 February 2020 are given below: Statement of Comprehensive Income for the year ending 29February 2020 2020 Rm 2019 Rm Continuing operations Sales revenue 2 526.3 2 066.9 Profit (earnings) before interest and tax 310.9 242.2 Finance costs (21.3) (18.5) 289.6 223.7 Income from investments 8.7 7.7 Share of profits of associates 0.0 0.1 Profit before tax 298.3 231.5 Income tax expense (109.5) (86.9) Profit for the year from continuing operations 188.8 144.6 Discontinued operations Loss from discontinued operations Profit for the year 48.6 0.0 140.2 144.6 Other comprehensive income Total comprehensive income 140.2 144.6 Total comprehensive income attributable to: Owners of the company 104.7 109.9 Non-controlling interests 35.4 34.6 Preference shareholders 0.1 0.1 140.2 144.6 Statement of Changes in Equity as at 29 February 2020 2020 2019 Rm Rm Balance at 28 February 2019 Transfer from reserves Comprehensive income 296.7 227.2 0.0 1.6 104.7 109.9 401.4 338.7 Dividends 59.7 42.0 Balance as at 28 February 2020 341.7 296.7 Earnings per share 3.58 2.62 Dividends per ordinary share 1.33 1.00
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