Financial reporting

Financialreporting

Mine-Tech Plc adjusted financial statement as at 31stSeptember 2014 and 31stSeptember 2013

31st September 2014

31st September 2013

‘000

‘000

‘000

‘000

Non- current assets

Land and buildings22391

Less depreciation25

22366

Motor vehicles

1193

New plant machinery

110

Fixtures and fittings

841

investments

860

Current assets

inventories

104

Trade and other receivables

1596

Current account

510

Petty cash

25

Assets held for sale

1000

Total assets

28605

Equity

Ordinary share capital (25p shares)

1200

Share premium

700

Retained earnings

2304

4204

Non-current liabilities

Increase on capital

85

Finance lease

435

Deferred tax

280

borrowings

21600

22400

Current liabilities

Trade and other payables

818

Finance lease

378

Taxation payable

225

Deferred income

120

Dividends payable

460

2001

Total equity and liabilities

28605

Analysisformulae

Theratios below were calculated from adjusted figures on the financialstatements of Mine Tech Plc. as at 31stSeptember 2014.

Liquidityratios

  1. Current ratio: liquidity efficiency ratio that measures ability to pay off its current liabilities with its current assets.

Currentassets/ current liabilities = 3235/2001 = 1.62

  1. Acid test ratio

Currentassets less stock in trade/ current liabilities = (3235 – 1596)/2001 = 0.8191

  1. Profitability ratio: company’s ability to generate profits from its operations.

Netprofit (after tax)/ sales = 500.248/ 8890 = 0.0563

  1. Return on capital employed

Netprofit (after tax)/ total assets = 500.248/ 28605 = 0.0175

  1. Utilization ratios: To give an idea on how the assets are utilized in meeting the objectives of the company.

Sales/fixed assets = 8890/ 25370 = 0.3504

  1. Stock turnover

Costof goods sold/ stock in trade = 4986/ 1596 = 3.124

  1. Net working capital = current assets – current liabilities 25370 – 2001 = 23369

  2. Net working capital ratio = 23369/ 28605 = 0.817

  3. Equity ratio = total equity/ total assets = 4204/ 28605 = 0.145

  4. Debt ratio = total liabilities/ total assets = 24401/ 28605 = 0.853

Givesan idea of how the assets can meet the debt demand on the company ifthe assets were to be used to offset the debts. Measures thefinancial leverage of a company

Mine-Tech Plc adjusted income statement for the year ended 31stSeptember 2014

Revenue 8890

Costof sales (4986)

Profitfrom operations 3904

Otherexpenses (2974)

Financeincome 80

Financecosts (245)

Profitbefore tax 765

Incometax expense (225)

Profitfrom asset sales 20

Startup losses (59.752)

Profitfor the year 2014 500.248