Pitted Prunes plc merged with Rosy Plums plc and changed its name to Pitted Rosy Plums plc in June 1987. The figures included in the accounts for the year ended 31 December 1987 included the results of both companies from 1 January 1987.
The financial highlights printed in the annual report showed:
|
1987 |
1986 |
|
|
£000 |
£000 |
|
|
Turnover |
||
|
Pitted Prunes plc |
46434 |
43354 |
|
Rosy Plums plc |
110420 |
78050 |
|
156854 |
121404 |
|
|
Profit before taxation |
||
|
Pitted Prunes plc |
4336 |
4171 |
|
Rosy Plums plc |
2019 |
1144 |
|
6355 |
5315 |
|
|
Shareholders’ funds |
38061 |
35772 |
|
Pence per share |
||
|
Earnings per ordinary share |
19.6 |
16.80 |
|
Dividends per ordinary share (net) |
5.9 |
5.12 |
The five year review showed:
|
1987 |
1986 |
1986 |
1985 |
1984 |
1983 |
|
|
£000 |
£000 |
£000 |
£000 |
000 |
£000 |
|
|
restated |
||||||
|
Turnover |
156854 |
121404 |
43354 |
40959 |
34832 |
25209 |
|
Percentage exported |
52% |
49% |
44% |
45% |
44% |
38% |
|
Operating profit |
8437 |
6476 |
4174 |
3137 |
2607 |
1569 |
|
Profit on ordinary |
||||||
|
activities before |
||||||
|
taxation |
6355 |
5315 |
4171 |
2667 |
2208 |
1205 |
|
Profit on ordinary |
||||||
|
activities after |
||||||
|
taxation |
4538 |
3940 |
3040 |
2072 |
1836 |
952 |
|
Dividends: |
||||||
|
Preference |
287 |
289 |
285 |
124 |
77 |
77 |
|
Ordinary |
1288 |
1601 |
625 |
454 |
403 |
330 |
|
Shareholders’ funds |
38061 |
35772 |
15470 |
13529 |
10066 |
8590 |
|
Earnings per ordinary |
||||||
|
share |
19.6p |
16.8p |
22.6p |
16.0p |
14.4p |
7.1p |
|
Dividends per ordinary |
||||||
|
share |
8.1p |
7.2p |
7.2p |
5.3p |
4.7p |
3.8p |
(a) Explain the current requirements for a company to produce a five year summary with its annual report and the circumstances in which it may be necessary to restate the actual figures.
(b) Discuss how historical summaries may be of interest and use to an investor or potential investor.
(c) Discuss the adequacy of the five year historical summary produced for Pitted Rosy Plums plc and the minimum content that you consider desirable.