Discussion questions

1. Compare the current financial performance with its past performance.

2. What major red flags do you see in the financial statements and ratios?
3. What is your overall assessment of the company?
4. As a current investor of this company, which elements of financial performance are most im
5. As a current investor of this company, would you buy more shares, hold current shares, or
mance.
ratios?

al performance are most important?

es, hold current shares, or sell the shares?
Consolidated Income Statement for the period ended 30 July 2023
(Restated)
2023 2022 2021
$ 000 $ 000 $ 000
Retail sales 3,399,112 3,294,332 3,414,601
Cost of retail goods sold 2,262,388 2,129,950 2,173,245
Gross profit 1,136,724 1164382 1,241,356
Other income 8,585 7,683 7,050
Employee expense 574,352 575,361 582,098
Depreciation and amortisation expense 162,696 146,122 143,344
Other operating expense 306,211 291,812 253,434
Operating profit from continuing operations 102,050 158770 269,530
Unusal items 13,935 - 86,955
EBIT 88,115 158770 182,575
Net interest expense 44,521 36,831 37,458
Profit before tax 43,594 121939 145,117
Income tax expense 13,657 34,851 37,247
Net profit for the period 29,937 87,088 107,870

Consolidate Balance Sheet as at 30 July 2023

(Restated)
2023 2022 2021
$ 000 $ 000 $ 000
ASSETS
Current assets
Cash and cash equivalents 28,330 24,999 160,526
Trade and other receivables 76,274 87,853 79,277
Inventories 493,308 562,313 457,151
Derivative financial instruments 5,208 29,491 8,837
Current taxation 5,038 1,505 -
Total current assets 608,158 706,161 705,791
Non current assets
Trade and other receivables 20,747 11,664 4,408
Derivative financial instruments - 1,310
Property, plant and equipment 222,289 224,355 194,619
Intangible assets 168,239 151,825 127,179
Right of use assets 661,025 673,278 736,524
Investment in associate - 3,839 -
Deferred taxation 88,476 89,227 95,958
Total non current assets 1,160,776 1,154,188 1,159,998
Total assets 1,768,934 1,860,349 1,866,057

LIABILITIES
Current liabilities
Borrowings 76,400 66,150 -
Trade and other payables 407,339 480,596 436,579
Derivative financial instruments 7,320 668 4,353
Taxation payable - 10,878
Lease liabilities 98,996 95,849 97,812
Provisions 49,292 49,831 74,515
Total current liabilities 639,347 693,094 624,137
Non current liabilities
Lease liabilities 704,162 724,991 794,379
Provisions 22,405 21,165 23,371
Total non current liabilities 726,567 746,156 817,750
Total liabilities 1,365,914 1,439,250 1,441,887
Net assets 403,020 421,099 424,170

EQUITY
Contributed equity 360,235 360,235 360,235
Reserves 10 12,739 6,056
Retained earnings 41,825 48,940 60,573
Total equity atributable to shareholders 402,070 421,914 426,864
Minority interest 950 (815) (2,694)
Total equity 403,020 421,099 424,170
Horizontal analyses (Increase/(decrease)
during 2023 Vertical analyses (Common size)

Amount 2023 2022

$ 000 % % %
 Ratio analyses

Name Ratio
2023 2022
Consolidated Income Statement for the period ended 30 July 2023
(Restated)
2023 2022 2021
$ 000 $ 000 $ 000
Retail sales 3,399,112 3,294,332 3,414,601
Cost of retail goods sold 2,262,388 2,129,950 2,173,245
Gross profit 1,136,724 1164382 1,241,356
Other income 8,585 7,683 7,050
Employee expense 574,352 575,361 582,098
Depreciation and amortisation expense 162,696 146,122 143,344
Other operating expense 306,211 291,812 253,434
Operating profit from continuing operations 102,050 158770 269,530
Unusal items 13,935 - 86,955
EBIT 88,115 158770 182,575
Net interest expense 44,521 36,831 37,458
Profit before tax 43,594 121939 145,117
Income tax expense 13,657 34,851 37,247
Net profit for the period 29,937 87,088 107,870

Consolidate Balance Sheet as at 30 July 2023

(Restated)
2023 2022 2021
$ 000 $ 000 $ 000
ASSETS
Current assets
Cash and cash equivalents 28,330 24,999 160,526
Trade and other receivables 76,274 87,853 79,277
Inventories 493,308 562,313 457,151
Derivative financial instruments 5,208 29,491 8,837
Current taxation 5,038 1,505 -
Total current assets 608,158 706,161 705,791
Non current assets
Trade and other receivables 20,747 11,664 4,408
Derivative financial instruments - 1,310
Property, plant and equipment 222,289 224,355 194,619
Intangible assets 168,239 151,825 127,179
Right of use assets 661,025 673,278 736,524
Investment in associate - 3,839 -
Deferred taxation 88,476 89,227 95,958
Total non current assets 1,160,776 1,154,188 1,159,998
Total assets 1,768,934 1,860,349 1,866,057

LIABILITIES
Current liabilities
Borrowings 76,400 66,150 -
Trade and other payables 407,339 480,596 436,579
Derivative financial instruments 7,320 668 4,353
Taxation payable - 10,878
Lease liabilities 98,996 95,849 97,812
Provisions 49,292 49,831 74,515
Total current liabilities 639,347 693,094 624,137
Non current liabilities
Lease liabilities 704,162 724,991 794,379
Provisions 22,405 21,165 23,371
Total non current liabilities 726,567 746,156 817,750
Total liabilities 1,365,914 1,439,250 1,441,887
Net assets 403,020 421,099 424,170

EQUITY
Contributed equity 360,235 360,235 360,235
Reserves 10 12,739 6,056
Retained earnings 41,825 48,940 60,573
Total equity atributable to shareholders 402,070 421,914 426,864
Minority interest 950 (815) (2,694)
Total equity 403,020 421,099 424,170
Horizontal analyses (Increase/(decrease)
during 2023 Vertical analyses (Common size)

Amount 2023 2022

$ 000 % % %
104,780 3.18 100 100
132,438 6.22 66.56 64.65
(27,658) -2.38 33.44 35.35
902 11.74 0.25 0.23
(1,009) -0.18 16.90 17.47
16,574 11.34 4.79 4.44
14,399 4.93 9.01 8.86
(56,720) -35.72 3.00 4.82
0.41
(70,655) -44.50 2.59 4.82
7,690 20.88 1.31 1.12
(78,345) -64.25 1.28 3.70
(21,194) -60.81 0.40 1.06
(57,151) -65.62 0.88 2.64

3,331 13.32 1.60 1.34

(11,579) -13.18 4.31 4.72
(69,005) -12.27 27.89 30.23
(24,283) -82.34 0.29 1.59
3,533 234.75 0.28 0.08
(98,003) -13.88 34.38 37.96

9,083 77.87 1.17 0.63

(2,066) -0.92 12.57 12.06

16,414 10.81 9.51 8.16
(12,253) -1.82 37.37 36.19
0.21
(751) -0.84 5.00 4.80
6,588 0.57 65.62 62.04
(91,415) -4.91 100.00 100.00

10,250 15.50 4.32 3.56

(73,257) -15.24 23.03 25.83
 6,652 995.81 0.41 0.04

3,147 3.28 5.60 5.15

(539) -1.08 2.79 2.68
(53,747) -7.75 36.14 37.26

(20,829) -2.87 39.81 38.97

1,240 5.86 1.27 1.14
(19,589) -2.63 41.07 40.11
(73,336) -5.10 77.22 77.36
(18,079) -4.29 22.78 22.64

0 0.00 20.36 19.36

(12,729) -99.92 0.00 0.68
(7,115) -14.54 2.36 2.63
(19,844) -4.70 22.73 22.68
1,765 -216.56 0.05 -0.04
(18,079) -4.29 22.78 22.64
 Ratio analyses

Name Ratio
2023 2022
Profit margin 0.88% 2.64%
Gross profit percentage 33.44% 35.35%
Return on total assets 1.65% 4.67%
Return on total shareholders equity 7.27% 20.61%
Inventory turnover 4.29 4.18
Number of days in selling period 85.15 87.35
Account receivable turnover 34.59 35.96
Number of days in collection period 10.55 10.15
Current ratio 0.95 1.02
Quick ratio 0.16 0.16
Debt ratio 77.22% 77.36%
Interest coverage 1.98 4.31