You have recently been appointed as a management consultant at a renowned consultancy firm in Portsmouth. You have been asked to produce an analysis of Greggs Group plc and its market segment. Your report should contain the following elements:

? An analysis of the financial status of Greggs plc with comments, producing the main financial ratios (see Business Accounting, lectures 8 and 9, Term 2) and comparing the two most recent financial years. Extracts from the financial statements and other key financial information to use is shown on page 4.

? Comment on the limitations of using ratio analysis to assess business performance.

? Discuss Greggs Group plc's strategy and market share and compare its profitability with a key competitor (details can be obtained from the Greggs plc and competitor websites).

? Discuss the reasons why companies produce annual reports and accounts.

Income Statement (adapted) of Greggs Plc for the year ending 28 December... 2019 2018 E' million E'million Revenue 1167.9 1029.3 Cost of Sales (418.1) (379.3) Gross Profit 749.8 650 Distribution and selling Expenses (572.8) (512.8) Administrative expenses (62.2) (54.6 Operating Profit 114.8 82.6 Finance expense (6.5) Profit before tax 108.3 82.6 Corporation tax (21.3) (16.9) Profit for the year 87 65.7 Statement of financial position of Greggs Plc as at 28 December... STATEMENT OF FINANCIAL POSITION 2019 2018 ASSETS E'million E'million NON-CURRENT ASSETS In tangible assets 16.8 16.9 Property, Plant and Equipment 353.7 330.4 Other non-current assets 276 0.2 CURRENT ASSETS Inventories 23.9 20.8 Trade receivables 27.1 31.6 Cash at bank 91.3 88.2 142.3 140.6 TOTAL ASSETS 788.8 488.1 EQUITY AND LIABILITIES EQUITY Ordinary share capital ($1 each) 2 2 Share Premium 13.5 13.5 Retained profits 330.9 313.2 Other reserves 0.4 0.4 TOTAL EQUITY 346.8 329.1 Total Non-Current Liabilities 233.3 13.8 CURRENT LIABILITIES Trade payables 142.3 126.5 Tax payables 11.8 10 Other payables 54.6 8.7 208.7 145.2 TOTAL EQUITY AND LIABILITIES 788.8 488.1