BUSINESS FINANCE ASSIGNMENT
SOURCES AND USES OF FINANCE IN GREGGS PLC
WORD COUNT: 1518
The company that’s been selected for this report Is Greggs. There a bakery with many shops throughout England, Scotland and Wales. Its name appears on the London Stock Exchange, and also is included in the FTSE 250.
John Gregg started his businesses selling yeast and eggs in the 1930’s. Eventually in 1951 john opened his first small bakery in Newcastle-upon-Tyne selling bread. In the early 70’s they entered into Scotland, Yorkshire and Manchester. Now they own over 1,500 shops, selling not only bread but a variety of bakery products.
Greggs is now a growing phenomenon with an increasing number of stores. Greggs now have more stores in Britain than major food outlets e.g. McDonalds according to Saner (2010). Due to Greggs increasing market share they encounter enormous costs that need to be controlled. Finance is important for the day to day running of a business to be successful. There are many different sources of finance that Greggs use, these are listed below and will be discussed in detail in the next section.
* Operating Lease
* Government Grant
* Share Capital
* Retained Earnings
Sources of Finance
The financial statements for Greggs PLC are provided in the appendix, these both show the figures for 2009 and 2010
Revenue for Greggs was £658.186million in 2009 and increased to £662.326million in 2010. This increase in sales revenue by 4.2% resulted upon the opening of around 60 new shops (McMeikan, 2011).
Capital Expenditure £M
(Hutton, 2010) | 2010 | 2009 |
New Shops & Resites | 11.9 | 5.8 |
Shops Refits & Equipment | 13.8 | 12.1 |
Supply Chain Capacity | 7.9 | 2.1 |
Other Expenditures | 12.0 | 10.3 |
Total Capital Expenditure | 45.6 | 30.3 |
Above is a table showing all the sections in which need to be financed. From 2009 Greggs spending...