Projections of Body Shop Essay Example | Topics and Well Written Essays - 2000 words

Projections of Body Shop - Essay ExampleIncome Statement2002(GBP)2002(% sales)2003(GBP)2003(% sales)2004(GBP)2004(% gross revenue)Turnover413.1 cytosine428.5100442.6100Cost of Sales158.339168.139.2182.339.2Gross Profit254.861260.460.3260.358.8Operating Expensesexcluding exceptional costs209.345.4228.146.1239.742.3exceptional costs000000restructuring costs000000Net interest expense0.901.81.52.31.9Profit Before impose4.15.316.444.115.52.9 levy Expense104.27.85.72.10.88Profit(loss) after tax2.13.813.27.16.13.7Ordinary dividends145184.1114.1Profit ( loss retained)194.78.17.43.24.1Income Statement2005(GBP)2005(% sales)2006(GBP)2006(% sales)Turnover479.2100502.8100Cost of Sales208.143238.647.45Gross Profit271.157264.252.65Operating Expensesexcluding exceptional costs242.147.1267.250.3exceptional costs0000restructuring costs0000Net interest expense1.1001.8Profit Before Tax2.93.17.39.2Tax Expense2.73.119.110.7Profit(loss) after tax5.16.29.87.1Ordinary dividends7.36.89.95.1Profit ( loss reta ined)14.19.16.28.2A brief analysis of the historical data reveals that Financially The Body Shop is on a sound footing financially and was so until the purchase by LOreal. There is a healthy growth in the Turnover averaging around 8%. The cost of sales rarely exceed 40% leaving a fairly healthy margin to work with. That margin is again reflected in the feature that the gross profit is consistently around the 60% mark. And except during a couple of years where there were exceptional costs and restructuring costs , there is a healthy profit before tax. Hence the decision to delist body Shop ( an automatic event on... Body Shop is in a unique incline of not having to market itself in the conventional sense because of its strong customer base. It has a strong following of loyal customers , because among others , its percieved social values. The governmental issues which it has attached itself include being 100% vegetarian and not use animal testing. Using Environmentally Friendly pro ducts and champion other social causes like AIDS. still Anita Roddick , on her deathbed ( she died recently of Hepatitis C) was actively campaigning A recent stockholder survey revealed what the stock holders think. Some of the responses were The way that the Body Shop strives to produce open, right and fair annual report and accounts and interim reports, and manages to send them out to shareholders reasonably promptly. Would not like the Body Shop to stop its social audit. In accompaniment would like more info in audit. Asking for opinions, such as this. The format of the Annual Report. Keep the campaigning and values but improve the marketing. No more paperwork than at present. Thank you for not producing huge, glossy reports a waste of paper and always a sign of desperationIn other talking to the group of people who are Body shop shareholders are from the same set of people who are its customers. It has a unique market which is genuinely strong.The weaknesses which maybe ex posed now , because of the the purchase of the Company by Loreal is that all key decisions and strategy were centered around Anita and Gordon Roddick.