Company Information Flashcards
What does HalfPenny do?
Bread company, B2B, packaged bread, sliced bread and bread rolls
In the company profitable?
Yes, 28k in 2024
What makes Halpenny different to rivals?
Branding, family owned, longstanding history, trusted brand in Keeland
Who are the shareholders?
Founded by Martha and Bert Halfpenny, still owned by Halfpenny family
What sales channels do Halfpenny use?
B2B to large supermarkets and independent grocery stores
80% large retailers and 20% small retailers
No sales are made B2C
Which countries are products sold too?
Keeland
What marketing does Halfpenny do?
Rosa Gimble (sales & marketing director) has created the halfpenny brand.
Retailers to promote products.
Company website
Which products have the highest and lowest margins?
Rolls have a better margin than loaves.
Rustic have the highest margins and wholemeal the lowest.
Are sales seasonal?
No.
How important is sustainability?
All distribution vehicles are electric.
Ingredients from sustainable suppliers.
Minimise food waste and packaging.
Carbon neural by 2040.
What type of organisational structure does Halfpenny have?
Functional.
Is the industry growing or shrinking?
Pre-packaged bread in Keeland is shrinking due to switch towards artisan bread and overall reduction in demand for bread due to health reasons.
What market share does HalfPenny have in Keeland?
One of five largest plant bakeries in Keeland.
80% of the market by sales volume.
70% of the market by sales value.
What future plan have been identified?
Extending product range.
Modernise production process.
Innovation through new recipes.
Did Halfpenny perform well in 2024?
Small increase in both revenue 3.4% and gross profit 2.5%
Increase in selling and admin costs.
Margins fell slightly.
ROCE fell from 29% to 27.3%
Why had turnover increased in 2024?
No new products.
Inflation.
What changed in costs between 2023 & 2024?
COS increased faster than revenue.
Has working capital improved in 2024?
Cash down by £50k.
494k extra cash tied up in working capital.
Quick & current ratios unchanged.
Operating cycle only slightly changed.
Both receivable and payable days seem high.
Comment on Halfpenny financial gearing?
Gearing ratio is low and fallen slightly, so should be feasible to raise debt finance if needed for expansion.
Interest cover high and increased.
Comment on cashflow
Cash down by 50k.
494k extra cash tied up in working capital.
net additional 28.9m invested in PPE.
Paid dividend on 12m.
Is 2025 budget realistic?
5.7% growth in revenue seems optimistic as no new product ranges.
4.6% in COS seems more reasonable.
Strengths for Halfpenny
Long established brand since 1891
Family owned
Loyal customer base
Experienced management team
High quality product reputation
High market share in Keeland
Strong relationships with large retailers
Sustainable ingredients sourcing
Efficient distribution network
Carbon neutral by 2040
Consistent revenue growth
Weaknesses for Halfpenny
Declining pre-packaged bread market
Limited product range in bread loaves and rolls
Dependant on Keeland market
Lower profit margins with large retailers
High reliance on single yeast supplier
SLow adaption to health trends
High fixed overheads
Limited management involvement in budget setting
Potential for outdated machinery.
Opportunities for Halfpenny
Expansion into health conscious market
Increased demand for artisan bread
Use of plant based ingredients
Increased product customisation
Expansion into other markets (e.g. cakes)
Digital ordering system
Collab with sustainable farms
Innovation in baking techniques
Enhanced production efficiency
Potential for online sales
B2C sales
