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Financial Performance Review Belhaven Group Plc

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On the other hand, there has also been an increasing trend in the company’s operating expenses, which has its impact on operating profit for the year, as indicated by the considerable gap between the company’s gross profit and net profit. The company gross profit margin is 51.91% of sales, while the net profit margin is only 18.45% sales. This noticeable gap is because of the amount spent by the company on operating expenses during the year. A major part of these expenses comes from the administrative expenses.
The company’s basic Earnings Per Share has increased over the financial year from 37.2p to 43.7p, which is a good sign for the investors who are interested in the company’s share price.
The dividend per share paid by the company has also increased from 8.00p to 7.25p over the financial year. The company also paid interim dividend to its shareholders at 4.35p per share, which also is more than that of the previous year’s 3.95p interim dividend per share. This shows the sustainable financial performance of the company, being an attractive sign for the company’s investors.The Belhaven Group Plc’s financial position at the end of the financial year in 2005 can also be assessed with the help of the company’s annual reports and financial statements. The following factors may be helpful in analysing the company’s financial position: The company’s working capital can be obtained by subtracting the current liabilities from the current assets. The company’s current liabilities are 56,760,000 whereas. it owns current assets of 15,505,000. It means that the company’s current liabilities are about 127% of its current assets. This is not a feasible sign for a company’s financial position, as every company needs sufficient current assets to pay off its short-term debts and liabilities whenever a need arises.
The Belhaven Group Plc’s short term debts and liabilities are more than double at the end of the current financial year as revealed by the company’s annual accounts. These liabilities are to be paid within the period of one year, but the company doesn’t have enough current assets to pay them off.
The company long-term debts and liabilities that are to be paid after more than one year have decreased by 28% at the end of the financial year. It is therefore apparent that the company has been able to payoff some of its long-term liabilities. At this