Introduction
SSP plc is engaged in food processing, supplying all the main supermarket chains with first class processed meat products. The last few years have been difficult for the food manufacturing industry because of food scares surrounding BSE and Foot and Mouth disease, both of which have led to an increase meat production around the world. As a responsible company, SSP have taken steps to ensure the health and safety of all there meats in the production chain. This report will analyze the financial information users, sources of finance and SSP’s ratio analysis, which shows cash flow of SSP over the accounting period and gives and overall analysis after those ratios.
Part 1
There are six kinds of users of financial information in SSC plc.
Managements are people employed by the company to administer and control the use of the resources. They use financial information to make effective decisions, to compare performance with previous years and competitor, and identify areas of improvement, plan future resource allocation, decide purchasing and pricing policies. They will use the financial accounts and ratio analysis, budgets are also an important source to management to identity possible future problems.
Employees are people hired by the company. They are interested in profitability and the company’s future prospects that will effect their job security and future salary negotiations. They will use the cash flow statement that as a guide to future prospects, also trading, profit and loss account and profitability ratios can be used by them.
Present shareholders are the owners of limited companies who have invested in a business by buying ordinary or preference shares. They cared about the value of their share and the return on the investment, to help them decide whether to remain in this company or invest elsewhere. They will use profitability ratios which related dividend they can receive. Also, they will receive a copy of the annual report.