芬斯伯里食品集团分析报告--加拿大Paper代写范文

加拿大Paper代写范文:“芬斯伯里食品集团分析报告”，这篇论文主要描述的是芬斯伯里是一间总部位于英国伦敦的上市公司，芬斯伯里想要收购汉密尔顿和记忆里蛋糕，在收购后芬斯伯里承受着较大的债务水平，为了解决债务重组的问题，需要对芬斯伯里进行重组，约翰达菲以首席执行官的身份加入便开始了重组的进程，防止芬斯伯里处在过度负债的困境。

Finsbury was a UK-based foods group listed on the AIM of the LSE. Thecompany had mainly grown through acquisitions, and was now a portfolio ofsubsidiaries including Lightbody of Hamilton Ltd, Memory Lane Cakes Ltd (whichproduced cakes for Nestlé, Weight Watchers and Thorntons), UCB (the subsidiaryproducing Genius Foods’ gluten-free bakery products), Nicholas & Harris Ltd andGoswell Enterprise Ltd, a recent addition that had cost the group ￡2.2 million in2009. These acquisitions had enabled Finsbury to grow quickly, but they hadincreased the group’s financial gearing substantially. As long as earnings weregrowing, the relatively high level of debt was not too much of an issue. But the recentrecession had put pressure on sales revenue, which were down 6% between 2009

3and 2010, at ￡168.3 million. Margins had also suffered lately, due to an increase inthe price of food commodities such as sugar and wheat, combined with astrengthening of the currencies these commodities were traded in. The gross profitmargin had however recovered slightly between 2009 and 2010.

The dangerously high level of debt had pushed Finsbury to take actions, and engage in restructuring activities. A new management team had been appointed to turn around the company. John Duffy had taken over as chief executive officer (CEO) in September 2009, joined in January 2010 by a new finance director,

Stephen Boyd. Both men had worked in the food industry before, and came from private equity firms. They therefore had valuable experience restructuring

operations, and negotiating with providers of capital. They soon put in place measures to achieve cost savings, whilst at the same time actively managing theirbanking relationship.

As of July 2010, Finsbury had net debt1 of ￡36.5 million, down from ￡41.0 million the year before. It had access to a ￡50.2 million facility with HSBC Bank plc, including a ￡2.0 million overdraft, a ￡16.0 million confidential invoice discountingfacility, a ￡12.9 million term loans repayable over five years, a ￡4.7 million term loansrepayable in five years, a ￡8.2 million mortgage facility and ￡6.4 million rolling assetfinance facility. But there was still a non-negligible amount of credit risk: ￡13.5 million

had to be repaid within a year; some of the loans and borrowings carried variableinterest rates that could increase overnight; and Finsbury was subject to strict bank

covenants. To preserve cash, Finsbury had also eliminated its dividend, and did notplan to re-instate it in the near future.

Finsbury’s aim was to grow earnings and cash flows to be able to pay downdebt and invest in growth opportunities. The agreement with Genius had been a

bonanza, boosting the group’s sales and improving margins. It was thereforeimportant to keep the relationship with Genius alive and thriving, and Finsbury was prepared to make additional investments to support Genius’s growth.

Conclusion

Lucinda and Gervase were in need of help to determine how to finance

Genius’s growth. They were in particular looking for:

A critical assessment of Finsbury’s financial health. As Genius relied on Finsbury to manufacture its gluten-free products, and could potentially become an even closer partner, Lucinda and Gervase wanted to make surethat the food group was not facing any major financial issues. In particular,they wanted reassurance thatFinsburywas not overly indebted, and that itscost of capital was not so high that it would prevent positive net present valueprojects to be undertaken.? Recommendations as to which option to follow: (1) remain independent andrely on its internally generated earnings, and maybe bank loans, to finance itsexpansion plans; (2) seek a listing with a stock exchange, which would give it1 Net debt is calculated as overdraft, bank loans, asset finance and mortgages, less cash balances.

4the opportunity to tap financial markets for equity and debt capital; or (3) tiethe knot with either Finsbury or another suitor.

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