You are given the following details in connection with the results for Bleddyn plc, and you are also given a selection of industry average data. Note that

• Inventory Turnover is given in days.
• Shares in issue refers to ordinary 1 shares.
• Gearing is calculated as; Debt/(Debt + Equity)

Year ended 30 June 2017 2018 2019 2020 Industry

000 000 000 000 Average

Sales 770 790 750 700 Not available

Gross Profit 400 405 300 275 Not available

Dividend per share 3.4p 3.0p 3.0p 2.9p Not applicable

Shares in issue (000) 350 350 350 350 Not applicable

The following ratios have been calculated

ROCE 38.5% 38.7% 32.5% 30.9% 34.1%

Asset Turnover 1.25 1.25 1.05 0.78 1.47

Quick ratio 1.89 1.88 1.78 1.17 1.29

Inventory Turnover 3.6 3.4 3.5 3.7 3.97

Receivables Days 12.1 12.7 12.5 19.8 13.2

Payables Days 22.8 22.9 25.2 37.5 24.7

Gearing 30% 30% 30% 25% 35%

PE ratio 6.1 5.1 8.1 3.1 9.1

Interest Cover 1.7 1.8 1.4 1.2 1.6

REQUIRED

a) Calculate any additional ratios you consider to be appropriate, and analyse Bleddyn plcs performance for the period above. State any necessary assumptions, and show your workings. Suggest possible reasons for any of the trends and changes which you identify, and comment on the possible future outcomes, assuming that Directors policies stay unchanged into the future.

b) Following a major increase in share value, Bleddyn plcs PE ratio at 30 June 2021 was 20.4. The companys performance has not improved, but it is noted that Bleddyn plc holds some very valuable land. What type of investors might have pushed the share price up, and why?