Financial report analysis
Introduction
The following report is an analysis of the consolidated accounts for Hallenstein Glasson Holdings Ltd (HLG) based on the 2013 financial statements and the ratio analysis is based on the group account figures. The terms of this report is to firstly, determine the strengths, weaknesses and prospects of HLG and secondly, to determine if the shares are favourably priced?
Business Summary
Hallenstein Glasson Holdings Limited is a holding company. The Company, through its subsidiaries, is a retailer of men’s and women’s clothing in New Zealand and Australia. The Company’s segments include Hallenstein Bros Limited (New Zealand), Glassons Limited (New Zealand), Glassons Australia Limited (Australia), Storm (Retail 161 Limited) (New Zealand) and Hallenstein Properties Limited (New Zealand).
1
Financial Summary
For the fiscal year ended 01 August 2013, Hallenstein Glassons Holdings Limited revenues increased just over 2% to NZ$220.117. This increase is less than the 5% increase from the previous year.
Net income increased 15% to NZ$21M while Cost of sales remained the same.
Revenues reflect Glossons Australia segment increase of 10% to NZ$39.5M,
Hallenstein segment increase of 4% to NZ $77.5M.
Dividend per share increased from NZ$0.31 to NZ$0.32.
There is a no long term finance which affects company value and earnings per share.
The group is exposed to foreign exchange risk arising from exposure to US dollar.
The lack of long term borrowing is can affect the value of the company as well as the earining per share ratio. It can also affect management decision making as an agency issue with funding from equity decisions too easy to make. As management are not needing borrowings for business ventures there is no requirement to achieve better reteurns and jstify to shareholders.
Profitability Ratio
1. Profitability ratios show a company's overall efficiency and performance. We can divide profitability ratios into two types:
The following report is an analysis of the consolidated accounts for Hallenstein Glasson Holdings Ltd (HLG) based on the 2013 financial statements and the ratio analysis is based on the group account figures. The terms of this report is to firstly, determine the strengths, weaknesses and prospects of HLG and secondly, to determine if the shares are favourably priced?
Business Summary
Hallenstein Glasson Holdings Limited is a holding company. The Company, through its subsidiaries, is a retailer of men’s and women’s clothing in New Zealand and Australia. The Company’s segments include Hallenstein Bros Limited (New Zealand), Glassons Limited (New Zealand), Glassons Australia Limited (Australia), Storm (Retail 161 Limited) (New Zealand) and Hallenstein Properties Limited (New Zealand).
1
Financial Summary
For the fiscal year ended 01 August 2013, Hallenstein Glassons Holdings Limited revenues increased just over 2% to NZ$220.117. This increase is less than the 5% increase from the previous year.
Net income increased 15% to NZ$21M while Cost of sales remained the same.
Revenues reflect Glossons Australia segment increase of 10% to NZ$39.5M,
Hallenstein segment increase of 4% to NZ $77.5M.
Dividend per share increased from NZ$0.31 to NZ$0.32.
There is a no long term finance which affects company value and earnings per share.
The group is exposed to foreign exchange risk arising from exposure to US dollar.
The lack of long term borrowing is can affect the value of the company as well as the earining per share ratio. It can also affect management decision making as an agency issue with funding from equity decisions too easy to make. As management are not needing borrowings for business ventures there is no requirement to achieve better reteurns and jstify to shareholders.
Profitability Ratio
1. Profitability ratios show a company's overall efficiency and performance. We can divide profitability ratios into two types: