Fleetwood Corporation Company Financial Profile

1.0 Company Profile


Name of Company: Fleetwood Corporation

Year End: 30th June 2008

Main Operating Activities: Portable Accommodation

Chairman's Name: Michael Hardy

Chief Executive's Name: Greg Tate

Auditors Name and Audit Firm: Kathleen Bozanic from Deloitte

GICS Industry Group: Automotive and Components

2.0 Chairman's Report.

The chairman of Fleetwood Corporation, Michael Hardy, is optimistic in his report. Though he believes that the current global financial difficulties will have a negative impact on the company and that the year ahead will be a challenging one, he also believes that the long term prospects are positive (page 4-5 of Chairman's Report).

3.0 Directors Report

A final dividend for the year to 30 June 2008 of 15.0 cents per ordinary share plus a special dividend of 20 cents per ordinary share was paid on 30 September 2008 (page 28).

4.0 Accounting Policies

4.1 Financial reporting basis


This financial report was prepared on the basis of historical costs and does not take into account any changing money values or current valuations of non-current assets. Amounts in the financial report are rounded off to the nearest thousand dollars, unless otherwise indicated (page 4).


This financial report has been prepared in accordance with the Corporation Act 2001, Accounting

Standards and Interpretations, and complies with other requirements of the law. Accounting Standards and Interpretations include Australian equivalents to International Financial Reporting Standards (A-FIRS) (page 4).

4.2 Depreciation policy


Depreciation/ amortisation rates used for each class of asset for 20008 are as follows:

Buildings 2.5%

Leasehold Improvements 2%-25%

Plant and Equipment 2.5%-50%

(Page 6)

4.3 Revenue recognition (page 4)


Sale of Goods- recognised when the company has passed control of the goods to the buyer.

Construction Contracts- recognised when the stage of contract completion can be reliably measured. Where the outcome of a contract cannot be reliably estimated, contract costs are immediately recognised as an expense. Where it is probable costs will not be recovered, revenue is only recognised to the extent costs are recoverable.

4.4 Inventory cost-flow policy

Cost is determined on a first in first out basis and for work in progress includes an appropriate share of both variable and fixed costs (page 6).

5.0 Income Statement and Changes in Equity

Income statement (2008) (page 1) Consolidated Company

2008 2008

$'000 $'000

Sales 343,532 1703

Profit before interest and tax 51,141 34,355

Profit after income tax 34,213 33,169

Earnings per share:

Basic earnings per share (cents) 68.4

Diluted earnings per share (cents) 67.8

Net Profit (loss) recognized directly in equity (page 3) (860)

Issued Capital (page 2) 106,063 106,063

5.1 Strengths of the Company's Income Statement

Sales revenue on the income statement is strength for the company, as it increased by over $29,000 compared to the previous year. Other expenses decreased by over $7,000, and profit before interest and tax increased by over $10,000. These figures show that the income statement for Fleetwood Corporation is strong (page 1).

6.0 Balance Sheet

6.1 Total amounts for:


Non-Current Assets 116,799

Cash and Cash Equivalents 8,228

Current Assets 100,039

Trade Payables 47,024

Total Provisions 5,338

Retained Earnings 25,756

6.2 Changes in Fleetwood's financial position.

Based on the information provided in the annual report, Fleetwood's financial position has significantly changed. Their assets attained have raised approximately $15,000 from the previous year. Their operating profit increased by 29%, taking the total to $34.2 million. Their payment of special dividends borrowings were reduced by $ 4 million. Consequently, total debt reduced to $24 million representing a net debt to equity position of 12%.

7.0 Cash Flow Statement (pages 3 and 12 of Financial Report)

7.1 Total amounts for:

Opening balance of cash and cash equivalents $ 10,288

Net cash flow from operating activities $ 59,992

Net cash flow from investing activities $ 34,938

Net cash flow from financing activities $ 26,999

Closing balance of cash and cash equivalents $ 8226

7.2 Importance of Investment Activities

Investing activities are identified with changes in a corporation's long-term assets. They are reported in a separate section of the financial statement, Statement of Cash Flows--also known as the cash flow statement. Investing activities also include the sale of long-term investments and the sale of long-term assets that had been used in the business.

The money received from the sale of long-term assets will also be reported in the investing activities section of the cash flow statement. The money then received

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