Summative assignment on Next PLC Essay Example | Topics and Well Written Essays - 2500 words

Summative assignment on Next PLC - turn up ExampleJ D Wetherspoon plc incorporated in the London Stock Exchange is a tauten with the operations in the development and management of public houses. Incorporated in the twelvemonth 1979, the fellowship owns and operates 927 pubs religious offering food and drinks throughout the United Kingdom (Yahoo. Finance, 2014a).The overall performance of the Wehttherspoon remained improving for the past five geezerhood of assessment. The liquidity position of the company is notably low which further declines under the pressure of inventory bandage the profitability of the company is the declining as a result of increasing level of costs such as labour cost, marketing expenses and other repair and refurbishment etc (Reuters, 2013).The star year the in the recent nearly history of the company remained the year 2012 where Wetherspoon notable grew its revenue and profits in the year 2012. The underlying conclude for such growth has been Euro 201 2 footballtournament and the Diamond Jubilee in which the company opened net of 37 pubs in UK (BBC, 2012a). However, the impact of this event was clearly expected not to be sustained over a period of long term (BBC, 2012b). Despite this fact, the company is expanding its business to sustain the growth. For the purpose, expansion of the retail piazza of pubs is increasing, and the company has also expanded with a new pub in the Ireland (Yahoo. Finance, 2013). Expansion is widely being financed by debt in addition to the retained earnings (J D Wetherspoon Plc.,2014) hence, affecting the interest coverage ratio. Also, the cattle farm between the EBITDA and EBIT is also increasing as the depreciation and the amortization expenses are increasing. Consistent expansion and revolt cost have affected the margins within turn is reflected in the ROE OF the company in the year 2013 and onwards (BFN News,2013). For a similar reason, the EPS of the company has also declined. In the view of th e capital expenditure that company has been incurring and planning to continue