Johnston Presss Plc Financial Statement Analysis

2004-07

JOHNSTON PRESS PLC FINANCIAL STATEMENTS ANALYSIS 2004-07

0.A. CONSOLIDATED INCOME STATEMENT (million )

Total Revenue
Cost of Sales
Gross Profit
Administrative Expenses
Depreciation and Amortization
Distribution costs and Other operating costs, net
Operating Profit (EBIT)
Finance Income
Finance Costs
Share of Results Associates/Other
Profit before taxation
Income Tax Expense
Profit after Taxation
Minority Interest
Profit attributable to Discontinued Operations
Profit attributable to Parent Equity Holders

Copyright Jorge Farinha, The Magellan MBA

2004
519
-240
280
-62
-20
-21
177
0
-28
0
150
-43
107
0
0
107

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Johnston Presss Plc Financial Statement Analysis

2004-07

0.B. CONSOLIDATED BALANCE SHEET (million )

2004
Non-Current Assets
Property, Plant & Equipment
Goodwill and Other Intangible Assets
Investments in Subsidiaries
Investments in Joint-Ventures
Available-For-Sale Financial Assets
Interests in Associates
Trade and Other Receivables
Derivative Financial Instruments
Other
Total Non-Current Assets
Current Assets
Inventories
Trade and Other Receivables

Cash and Cash Equivalents

Total Current Assets
Total Assets
Current Liabilities
Trade Creditors
Other Payables
Retirement Benefit Obligations
Short-Term Borrowings
Obligations under financial leases
Taxes Payable
Provisions
Total Current Liabilities
Non-Current Liabilities
Other Payables
Obligations under financial leases
Long-Term Borrowings
Derivative Financial Instruments
Deferred Income Tax Liabilities
Provisions
Retirement Benefit Obligations
Total Non-Current Liabilities
Total Liabilities
Equity
Called-Up Share Capital
Share Premium Account
Share-Based payment reserve
Other Reserves
Retained Earnings

Copyright Jorge Farinha, The Magellan MBA

157
928
0
0
3
0
0
0
0
1087
4
60

10
75
1162
57
0
0
77
0
25
0
160
3
0
261
0
271
2
71
607
766
30
324
1
2
39

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Johnston Presss Plc Financial Statement Analysis

Total Equity
Minority Interest
Total Equity and Liabilities
Control

Copyright Jorge Farinha, The Magellan MBA

2004-07
395
1162
0

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Johnston Presss Plc Financial Statement Analysis

2004-07

0.C. CASH-FLOW STATEMENTS (million )

2004
Cash-Flows From Operating Activities:
Cash Generated From Operations
Interest Paid
Corporation Tax (Paid) / Received
Net Cash From Operating Activities
Cash-Flows From Investing Activities:
Purchase of Property, Plant and Equipment
Purchase of Intangible Assets
Proceeds From Disposal of PP&E and Other Assets
Acquisition and Investment in Subsidiaries and Businesses, net of cash
Investment in Joint Ventures
Proceeds From Disposal of businesses and available for sale investment
Cash Disposed on Disposal of businesses
Cost of Disposal of Operations
Interest Received
Dividends Received
Net Cash From Investing Activities
Cash-Flows From Financing Activities:
Proceeds From Issuance of Ordinary Shares
Purchase of own shares
Repayment of Borrowings
New Borrowings
Debt Restructuring Costs
Capital Elements of Obligations Finance Lease Payments
Dividends Paid
Arrangement fees in new borrowings
Net Cash From Financing Activities
Net (Decrease) / Increase in Cash and Cash Equivalents
Opening Cash and Cash Equivalents
Closing Cash and Cash Equivalents

Copyright Jorge Farinha, The Magellan MBA

194
-26
-34
133
-24
0
2
0
0
1
0
0
1
0
-20
3
-1
-97
0
0
0
-18
0
-113
0
10
10

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Johnston Presss Plc Financial Statement Analysis

2004-07

1. COMMON-SIZE STATEMENTS
1. A . COMMON-SIZE CONSOLIDATED INCOME STATEMENTS (% Total Revenues)
2004
100%
-46%
54%
-12%
-4%
-4%
34%
0%
-5%
0%
29%
-8%
21%
0%
0%
21%

Total Revenue
Cost of Sales
Gross Profit
Administrative Expenses
Depreciation and Amortization
Other Income
Operating Profit
Finance Income
Finance Costs
Share of Post-Tax Loss of Joint-Ventures
Profit before taxation
Income Tax Expense
Profit after Taxation
Minority Interest
Profit attributable to Discontinued Operations
Profit attributable to Parent Equity Holders

1.B. COMMON-SIZE CONSOLIDATED BALANCE SHEETS (% Total Assets)

2004
Non-Current Assets
Property, Plant & Equipment
Intangible Assets
Investments in Subsidiaries
Investments in Joint-Ventures
Available-For-Sale Financial Assets
Other Receivables
Deferred Income Tax Asset
Retirement Benefit Asset
Total Non-Current Assets
Current Assets
Inventories
Trade and Other Receivables
Derivative Financial Instruments
Cash and Cash Equivalents
Total Current Assets
Non-Current Assets Held For Sale
Total Assets
Current Liabilities
Trade Payables
Other Payables
Short-Term Borrowings

Copyright Jorge Farinha, The Magellan MBA

13%
80%
0%
0%
0%
0%
0%
0%
94%
0%
0%
5%
0%
1%
6%
0%
100%
0%
5%
0%
7%

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Johnston Presss Plc Financial Statement Analysis

Derivative Financial Instruments
Taxes Payable
Provisions
Total Current Liabilities
Non-Current Liabilities
Other Payables
Long-Term Borrowings
Derivative Financial Instruments
Deferred Income Tax Liabilities
Provisions
Retirement Benefit Obligations
Total Non-Current Liabilities
Total Liabilities
Equity
Called-Up Share Capital
Share Premium Account
Capital Redemption Reserve
Other Reserves
Retained Earnings
Total Equity
Total Equity and Liabilities

Copyright Jorge Farinha, The Magellan MBA

2004-07
0%
2%
0%
14%
0%
0%
22%
0%
23%
0%
6%
52%
66%
0%
3%
28%
0%
0%
3%
34%
100%

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Johnston Presss Plc Financial Statement Analysis

2004-07

1.C. COMMON-SIZE CASH-FLOW STATEMENTS (% of Cash Generated from Operations)

2004
Cash-Flows From Operating Activities:
Cash Generated From Operations
Interest Paid
Corporation Tax (Paid) / Received
Net Cash From Operating Activities
Cash-Flows From Investing Activities:
Purchase of Property, Plant and Equipment
Purchase of Intangible Assets
Proceeds From Disposal of PP&E and Other Assets
Acquisition and Investment in Subsidiaries and Businesses, net of cash
Investment in Joint Ventures
Proceeds From Disposal of businesses and available for sale investment
Cash Disposed on Disposal of businesses
Cost of Disposal of Operations
Interest Received
Dividends Received
Net Cash From Investing Activities
Cash-Flows From Financing Activities:
Proceeds From Issuance of Ordinary Shares
Capital Redemption
Repayment of Short-Term Borrowings, net
Repayment of Long-Term Borrowings, net
Debt Restructuring Costs
Interest and Capital Elements of Obligations Finance Lease Payments
Dividends Paid
Arrangement fees in new borrowings
Net Cash From Financing Activities
Net (Decrease) / Increase in Cash and Cash Equivalents
Opening Cash and Cash Equivalents
Closing Cash and Cash Equivalents

Copyright Jorge Farinha, The Magellan MBA

100%
-14%
-18%
69%
0%
-13%
0%
1%
0%
0%
1%
0%
0%
0%
0%
-10%
0%
2%
0%
-50%
0%
0%
0%
-9%
0%
-58%
0%
5%
5%

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Johnston Presss Plc Financial Statement Analysis

2004-07

2. FINANCIAL RATIOS
2004
Short-Term Liquidity Ratios
Current Ratio (Current Assets/Curr. Liabilities)
Quick Ratio ((Curr. Assets-Inventories)/Curr.Liabilities)
Cash Ratio (Cash&Marketable Securit.)/Curr.Liabilities)
Operating Cash-Flow Ratio (Cash-Flow from Operations/Curr.Liab.)
Sales-Cash Conversion Ratio (Cash-Flow From Oper/Sales)
Inventory Turnover ((Cost of Sales-Employee Costs)/Inventories)
Average Days of Inventories (days)
Average Collection Period (days)
Average Payment Period (days)
Operating Cycle (days)

0.47
0.44
0.06
0.83
25.6%
17.64
7
42
#REF!
#REF!

Profitability Ratios
Gross Profit Rate (Gross Profit/Sales)
Gross Margin Rate ((Gross Profit+Employee Costs)/Sales)
Return on Sales (Net Income/Sales)
EBITDA/Sales
EBIT/Sales
ROA-Return on Assets ((EBIT+Fin. Income)/Assets)
ROI-Return on Investment ((EBIT+Fin.Inc-Minor.Int)/(Equity+Debt))
ROE-Return on Equity (Net Income after minor.int/Equity)

53.8%
85.0%
20.5%
37.9%
34.2%
15.3%
16.5%
27.0%

Long-Term Solvency Ratios (Financial Leverage Ratios)

Debt Ratio (Total Debt/Assets)
Debt/Capital Employed (Debt/(Debt+Equity))
D/E Ratio (Debt-to-Equity Ratio)
Debt-to-Tangible Net Worth (Debt/(Equity-Intangibles))
LTD/CE Ratio (Long-Term Debt/(Debt+Equity))
Interest Coverage 1 (EBIT/Net Interest expense)
Interest Coverage 2 (EBITDA/Net Interest Expense)
Long Term Debt/ Total Debt

58.9%
63.4%
1.73
-1.29
0.56
6.4
7.1
89%

Activity and Efficiency Ratios

Asset Turnover (Sales /Assets)
Sales / Non Current Assets
Sales / (Debt+Equity)
Sales per employee ('000 )
Employee Costs / Sales
PP&E Turnover (Sales/PP&E)
Sales Growth
Asset Growth
Critical Level of Revenues (Op.Profit) (million )
Revenues / Critical Level (Op. Profit)
Critical Level of Revenues (Net Income) (million )
Revenues / Critical Level (Net Income)

Copyright Jorge Farinha, The Magellan MBA

0.45
0.48
0.48
68
31.2%
3.31
nd
nd
311
1.67
343
1.51

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Johnston Presss Plc Financial Statement Analysis

2004-07

Degree of Operating Leverage (Gross Marg/EBIT))

Degree of Financial Leverage (EBIT/EBT)
Degree of Total Leverage (Gross Margin/EBT)

1.58
1.18
1.87

Market Ratios
EPS (Earnings per Share, pence)
P/E Ratio (Price-Earnings Ratio)
M/B Ratio (Market Cap/Book Equity)
Dividend Yield Ratio (Dividends/Market Cap)
Dividend Payout Ratio (Dividends / Net Income)
Stock return, year end
Enterprise Value / EBITDA
Market Capitalization Equity (million )

Copyright Jorge Farinha, The Magellan MBA

37.5
14.5
3.90
1.2%
17%
#REF!
11.3
1542

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Johnston Presss Plc Financial Statement Analysis

2004-07

3. DU PONT ANALYSIS

EBIT/Sales (return on sales)

Sales/Capital Employed (Sales/(Debt+Equity)) (cap.employed turnover)
EBIT/Capital Employed (return on assets)
EBT/EBIT (financial charges effect)
Capital Employed/Equity (leverage multiplier)
Financial Leverage Effect
Net Income/EBT (tax effect)
Minority Interest Effect
ROE

2004
34.17%
0.48
16.4%
0.84
2.73
2.30
0.71
1.00
26.96%

4. FINANCIAL LEVERAGE ANALYSIS

ROI ((EBIT+Fin.Income-Min.Int)/(Equity+Debt)
i (Interest costs / Total Debt)
ROI-i
D/E
(1-T)
ROE

Copyright Jorge Farinha, The Magellan MBA

2004
16.47%
4.1%
12.4%
1.73
0.71
26.96%

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Johnston Presss Plc Financial Statement Analysis

2004-07

5. CASH FLOW RECONCILIATION (million )

Operating Profit
Depreciation and Amortization
Increase in Inventories
Increase in Creditors
Increase in Debtors
Change in Working Capital
Operating Cash-Flow
Taxes
Operating Cash-Flow After Taxes
Interest Charges, net
Total Internal Funding
Increase in ST Borrowing
Increase in LT Borrowings
Shares Issues and Redemptions
Total External Funding
Total Funding
Investments in Fixed and Financial Assets
Dividends Paid
Changes in Cash & Equivalents
Total Applications of Funds

6. COMMON-SIZE CASH-FLOW RECONCILIATION (% of Total Funding)

Operating Profit
Depreciation and Amortization
Increase in Inventories
Increase in Creditors
Increase in Debtors
Change in Working Capital
Operating Cash-Flow
Taxes
Operating Cash-Flow After Taxes
Interest Charges, net
Total Internal Funding
Increase in ST Borrowing
Increase in LT Borrowings
Shares Issues and Redemptions
Total External Funding
Total Funding
Investments Fixed and Financial Assets
Dividends Paid
Changes in Cash & Equivalents
Total Applications of Funds

Copyright Jorge Farinha, The Magellan MBA

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Johnston Presss Plc Financial Statement Analysis

2005
520
-245
275
-54
-20
-24
178
0
-27
0
151
-44
108
0
0
108

Copyright Jorge Farinha, The Magellan MBA

2006
602
-305
297
-75
-30
-21
172
4
-44
0
132
-36
96
0
0
96

2004-07

2007
608
-312
296
-71
-24
-35
165
5
-46
0
125
-11
114
0
0
114

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Johnston Presss Plc Financial Statement Analysis

2004-07

2005

2006

2007

222
1315
0
0
3
0
1
0
0
1541

268
1484
0
0
3
0
0
7
0
1762

273
1504
0
0
3
0
0
4
0
1784

5
70

6
82

4
90

25
100

25
112

17
111

1641

1874

1895

73
0
4
48
0
17
0
142

74
0
4
2
0
8
0
88

77
0
3
16
0
18
0
114

3
0
595
9
362
3
51
1022
1164

0
0
751
18
399
2
41
1212
1300

2
0
673
16
395
2
10
1098
1212

30
327
3
-7
124

30
331
4
5
203

30
333
9
7
305

Copyright Jorge Farinha, The Magellan MBA

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Johnston Presss Plc Financial Statement Analysis

2004-07

477

574

684

1641
0

1874
0

1895
0

Copyright Jorge Farinha, The Magellan MBA

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Johnston Presss Plc Financial Statement Analysis

2004-07

2005

2006

2007

182
-24
-45
114

187
-43
-37
107

194
-47
-20
127

-64
0
2
-298
0
0
0
0
0
0
-359

-65
0
9
-160
0
3
0
0
1
0
-213

-31
0
5
-11
0
0
0
0
1
0
-36

4
-1
-163
444
0
0
-22
-2
261
15
10
25

4
-2
-34
163
0
0
-25
-1
105
0
25
25

2
0
-72
0
0
0
-27
0
-98
-7
25
17

Copyright Jorge Farinha, The Magellan MBA

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Johnston Presss Plc Financial Statement Analysis

2004-07

STATEMENTS (% Total Revenues)

2005
100%
-47%
53%
-10%
-4%
-5%
34%
0%
-5%
0%
29%
-8%
21%
0%
0%
21%

2006
100%
-51%
49%
-12%
-5%
-3%
28%
1%
-7%
0%
22%
-6%
16%
0%
0%
16%

2007
100%
-51%
49%
-12%
-4%
-6%
27%
1%
-8%
0%
21%
-2%
19%
0%
0%
19%

2005

2006

2007

14%
80%
0%
0%
0%
0%
0%
0%
94%
0%
0%
4%
0%
2%
6%
0%
100%
0%
4%
0%
3%

14%
79%
0%
0%
0%
0%
0%
0%
94%
0%
0%
4%
0%
1%
6%
0%
100%
0%
4%
0%
0%

14%
79%
0%
0%
0%
0%
0%
0%
94%
0%
0%
5%
0%
1%
6%
0%
100%
0%
4%
0%
1%

Copyright Jorge Farinha, The Magellan MBA

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Johnston Presss Plc Financial Statement Analysis

0%
1%
0%
9%
0%
0%
36%
1%
22%
0%
3%
62%
71%
0%
2%
20%
0%
0%
8%
29%
100%

Copyright Jorge Farinha, The Magellan MBA

0%
0%
0%
5%
0%
0%
40%
1%
21%
0%
2%
65%
69%
0%
2%
18%
0%
0%
11%
31%
100%

2004-07
0%
1%
0%
6%
0%
0%
35%
1%
21%
0%
1%
58%
64%
0%
2%
18%
0%
0%
16%
36%
100%

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Johnston Presss Plc Financial Statement Analysis

2004-07

% of Cash Generated from Operations)

2005

2006

2007

100%
-13%
-24%
62%
0%
-35%
0%
1%
-164%
0%
0%
0%
0%
0%
0%
-197%
0%
2%
0%
-89%
244%
0%
0%
-12%
-1%
143%
8%
6%
14%

100%
-23%
-20%
57%
0%
-35%
0%
5%
-86%
0%
2%
0%
0%
0%
0%
-114%
0%
2%
-1%
-18%
87%
0%
0%
-13%
0%
56%
0%
13%
13%

100%
-24%
-10%
66%
0%
-16%
0%
3%
-6%
0%
0%
0%
0%
0%
0%
-19%
0%
1%
0%
-37%
0%
0%
0%
-14%
0%
-51%
-4%
13%
9%

Copyright Jorge Farinha, The Magellan MBA

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Johnston Presss Plc Financial Statement Analysis

2004-07

2005

2006

2007

0.70
0.67
0.18
0.80
21.8%
15.56
7
49
352
-295

1.27
1.21
0.28
1.21
17.7%
17.04
7
50
271
-214

0.98
0.94
0.15
1.12
20.9%
23.60
5
54
279
-220

52.9%
85.5%
20.7%
38.0%
34.1%
10.9%
11.5%
22.6%

49.4%
83.7%
15.9%
33.4%
28.5%
9.4%
9.8%
16.7%

48.7%
83.2%
18.7%
31.2%
27.2%
9.0%
9.5%
16.6%

65.5%
69.3%
2.25
-1.28
0.66
6.7
7.5
95%

65.0%
68.0%
2.12
-1.34
0.68
4.3
5.0
99%

58.9%
62.0%
1.63
-1.36
0.61
4.1
4.6
98%

0.32
0.34
0.34
66
32.5%
2.34
0.2%
41.2%
312
1.67
343
1.52

0.32
0.34
0.34
68
34.3%
2.24
15.8%
14.2%
397
1.52
445
1.35

0.32
0.34
0.34
71
34.5%
2.22
0.9%
1.1%
409
1.49
351
1.73

Copyright Jorge Farinha, The Magellan MBA

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Johnston Presss Plc Financial Statement Analysis

2004-07

1.55
1.17
1.82

1.73
1.30
2.26

1.79
1.33
2.37

37.1
12.6
2.80
1.6%
20%
-14.1%
12.2
1335

33.1
11.9
1.97
2.2%
26%
-15.7%
11.6
1128

39.4
7.0
1.16
3.5%
24%
-29.9%
10.1
792

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Johnston Presss Plc Financial Statement Analysis

2004-07

2005
34.14%
0.34
11.5%
0.85
3.25
2.77
0.71
1.00
22.62%

2006
28.50%
0.34
9.6%
0.77
3.12
2.39
0.73
1.00
16.67%

2007
27.23%
0.34
9.2%
0.75
2.63
1.99
0.91
1.00
16.61%

2005
11.48%
2.5%
9.0%
2.25
0.71
22.62%

2006
9.80%
3.6%
6.2%
2.12
0.73
16.67%

2007
9.48%
4.1%
5.4%
1.63
0.91
16.61%

Copyright Jorge Farinha, The Magellan MBA

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Johnston Presss Plc Financial Statement Analysis

2004-07

2005
178
20
0
10
12
-2
199
-44
156
-26
129
-30
415
3
389
518
482
22
15
518

2006
172
30
1
12
-9
21
180
-36
144
-40
104
-45
190
2
147
251
227
25
0
251

2007
165
24
-1
8
12
-6
195
-11
184
-41
143
13
-114
2
-99
44
24
27
-7
44

2005
34%
4%
0%
2%
2%
0%
38%
-8%
30%
-5%
25%
-6%
80%
1%
75%
100%
93%
4%
3%
100%

2006
68%
12%
0%
5%
-3%
8%
72%
-14%
57%
-16%
41%
-18%
76%
1%
59%
100%
90%
10%
0%
100%

2007
376%
55%
-3%
17%
27%
-13%
444%
-25%
419%
-93%
326%
30%
-260%
3%
-226%
100%
54%
62%
-16%
100%

Copyright Jorge Farinha, The Magellan MBA

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