The attached report will analyse and compare the financial status of two UK supermarkets, Morrisons plc and Somerfield plc, for a potential investor who wishes to become a minor shareholder in one of the two company's. To perform this investigation the 2002 financial accounts of both company's have been used, this information will also include the financial data from the 2001 period, for further comparison between years. Please note the following points ~
a, For both company's the period for 2002, includes 52 weeks trading and the period for 2001, includes 53 weeks trading. No alteration for this difference has been undertaken, as both company's have the same discrepancy and to alter the figures would only result in minor alterations and no significant changes to the conclusions made in the report.
b, As each set of financial accounts is shown in different formats between the two companies, with the various components and values represented at different stages and headings. I have re-structured the profit & loss accounts and the balance sheets for the two company's. So that the relevant information is shown in a standard, Profit & Loss Account and Balance Sheet, therefore making comparisons between the two company's easier and more beneficial. Where this has not be possible and potential conflicts of interest have occurred, these limitations to the analysis have been noted and described in the report text.
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