Introduction to Financial Accounting Essay Example | Topics and Well Written Essays - 2500 words

Introduction to Financial Accounting - Essay Example The business strategy of the company is to remain focused on building its brands and improve upon its estate. â€Å"The company’s strategy is to be a modern, high quality, highly efficient brewer, wholesaler and retailer of premium specialty beers, wines, spirits, and minerals.† (J.B.Neame, Chief Executive in 2007 Annual Report). The company is admitting in its report that turnover of the company is increasing year by year, but it fails to mention anything about liquidity position of the company. Keeping in view such shortcomings in the material issued by the company as well as based on above background about company; and also as per available terms of references, the financial and overall performance of the company has been analyzed in this write-up as under. 3. In order to evaluate the impact of market developments, the situation has been analyzed based on earning per share and the posture of low capital gearing adopted by the company, in absence any data available about the company from active markets. In respect of analyzing the sales behavior over period from 2005 to2007, the sales in absolute figures have grown from  £91,354,000 in 2005 to  £95,343,000 in 2006 and to  £100,047,000 in 2007. Relatively sales in 2007 have grown 4.9% over 2006 and 9.51% over 2005. The sales behavior is very positive and encouraging despite smoking ban. The basic reason for such tremendous growth in absolute sales is growth in company’s infrastructural facilities providing a real push to the business. By the end of 2007 the company owned 376 pubs; and out of these338 pubs are freehold. Further the adherence to basic strategy of brand building is in fact paying dividends in the growth of gross turnover of the company. On this issue the chairman of the company emphasized in his statement in company’s annual report 2007, â€Å"Our business strategy remains to build our brands, invest to improve our pub estate, remain focused on our strength and to improve our overall