Britvic Plc Financial Analysis
Alexandra-Gabriela Sirbu
Business and Management, year 2, University of Salford
12/17/2010
BRITVIC PLC
Table of contents:
1 .Aim pg. 2
2. Company overview pg. 2
3. Short-term assets management pg. 3
4. Liquidity pg. 4
5. Profitability pg. 5
6. Financial structure and cost of capital pg.7
7. Share price behaviour pg. 8
8. Portfolio effect pg. 10
9. Concluding remarks pg 12
10. Bibliography pg 13
Britvic PLC –financial analysis-
1. Aim
The aim of the following report is to assess the financial activity of Britvic PLC over a sixty months period, from January 2005 until December 2009, in order to make recommendations for a future investment in the company. 2. Company overview
Britvic PLC was founded in 1938, in Chemsford, under the name of British Vitamin Company Products, from which it takes its name and has been the first company to launch fruit juice in baby bottles. Barely in 1971, the company became known as we know it today, changing its name to Britvic PLC.
Nowadays, Britvic PLC is, according to their website, one of Europe’s leading companies in the soft drinks industry, trading in over fifty countries across Europe, amongst which we may enumerate Great Britain, Ireland and France and possessing a brand portfolio which comprises names, such as Robinsons, Drench, and, from 2010, Fruite. Moreover, Britvic PLC owns bottling agreements with PepsiCo in the United Kingdom, for the brands Pepsi and 7UP.
According to the website www.stifel.com, a company’s size is defined by its market capitalization, alongside its physical size, described by its number of factories, employees. Britvic Plc had in the past five years an average number of employees of 3500, working in the company’s twelve factories to produce approximately 1.9 billions of litres of soft drinks that generated sales of 755000, on average, with a maximum of 978,800, reached in 2009. In terms of market capitalization, the mean revolves around 535,250, the peak being
Business and Management, year 2, University of Salford
12/17/2010
BRITVIC PLC
Table of contents:
1 .Aim pg. 2
2. Company overview pg. 2
3. Short-term assets management pg. 3
4. Liquidity pg. 4
5. Profitability pg. 5
6. Financial structure and cost of capital pg.7
7. Share price behaviour pg. 8
8. Portfolio effect pg. 10
9. Concluding remarks pg 12
10. Bibliography pg 13
Britvic PLC –financial analysis-
1. Aim
The aim of the following report is to assess the financial activity of Britvic PLC over a sixty months period, from January 2005 until December 2009, in order to make recommendations for a future investment in the company. 2. Company overview
Britvic PLC was founded in 1938, in Chemsford, under the name of British Vitamin Company Products, from which it takes its name and has been the first company to launch fruit juice in baby bottles. Barely in 1971, the company became known as we know it today, changing its name to Britvic PLC.
Nowadays, Britvic PLC is, according to their website, one of Europe’s leading companies in the soft drinks industry, trading in over fifty countries across Europe, amongst which we may enumerate Great Britain, Ireland and France and possessing a brand portfolio which comprises names, such as Robinsons, Drench, and, from 2010, Fruite. Moreover, Britvic PLC owns bottling agreements with PepsiCo in the United Kingdom, for the brands Pepsi and 7UP.
According to the website www.stifel.com, a company’s size is defined by its market capitalization, alongside its physical size, described by its number of factories, employees. Britvic Plc had in the past five years an average number of employees of 3500, working in the company’s twelve factories to produce approximately 1.9 billions of litres of soft drinks that generated sales of 755000, on average, with a maximum of 978,800, reached in 2009. In terms of market capitalization, the mean revolves around 535,250, the peak being
Bibliography: Atrill Peter and McLaney Eddie, Accounting and finance for non-specialists, 6th edition, Prentice Hall, 2008 Jordan D Anderson Karen, Bates Chris, Staple George, “A New Millennium, A New Regulator? The Financial Services Authority 's Approach”, THE Journal of Investment Compliance, 2001