Page 6 - Patisserie Valerie Teaching Note
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               Up until 10  October 2018, Patisserie Holdings gave every
               sign that it was a profitable company making good profits

               and expanding well. Its chairman, Luke Johnson trusted the

               figures supplied to him by his Chief Financial Officer and

               believed the auditor who gave the company a clean bill of

               health. Moreover, any questions he did raise were

               satisfactorily answered.


               Financial Overview




                 Overview            30 September       Year 1 Growth     3 Year CAGR       5 Year CAGR
                                     2017

                 Turnover             114,197,000 GBP               9.66            14.2%               -

                 EBITDA                25,636,000 GBP                  -           20.99%               -

                 Post-tax Profit       16,364,000 GBP            19.14%            22.48%               -

                 Total Assets          98,921,000 GBP            15.93%            17.05%               -

                 Net Assets            92,332,000 GBP            18.08%            18.93%               -

                 Gearing                        7.14%                  -                 -              -



               A low gearing percentage typically shows a company is

               financially stable. For Patisserie Holdings gearing would

               seem to indicate that management are in a financially

               strong position certainly capable for sustaining future

               growth.


               However, by the 11  October 2018, the company was
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               insolvent and requiring a cash injection on to keep going. In

               addition, the cash and assets shown in the accounts were

               fictitious.
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