The Body Shop (UVA F 1039)
Model FactsThis Spreadsheet supports INSTRUCTOR analysis of the
case, "The Body Shop International Plc: 2001" (Case 7)Please
note:1) This is a working model. Assumptions / Inputs presented can
be changed to vary the results.2) This model intentionally
incorporates circular logic. To resolve this circularity, please
instruct Excel to iterate 20-30 times in recalculating the model.
This is achieved by clicking on Tools/Options/Calculation, and on
the iteration button.3) As long as default spreadsheet calculation
is "automatic" the impact of changing assumptions will be computed
in real time. If calculation is set as "manual" you should press
the F9 function key torecalculate results. To set numerical
calculation settings to automatic look under tools, options,
calculations menu.Copyright 2001 by the Trustees of the University
of Virginia Darden School Foundation.Revised March 7, 2006.
&APage &P
Exhibit TN1Exhibit TN1The Body Shop Plc 2001:Hypothetical
Three-Year Forecast Worksheet, Drawing on Case Exhibit 8Fiscal Year
Ended February 28AssumptionsForecast199919992000200020012001(GBP)(%
sales)(GBP)(% sales)(GBP)(% sales)20022004200220032004Income
StatementTurnover303.7100.0330.1100.0374.1100.0Cost of
sales127.742.0130.939.7149.039.8Gross
profit176.058.0199.260.3225.160.2Operating expensesexcluding
exceptional costs151.449.9166.250.3195.752.3exceptional
costs4.51.50.00.011.23.0Restructuring costs16.65.52.70.81.00.3Net
interest expense0.10.01.50.54.41.2Profit before
tax3.41.128.88.712.83.4Tax expense8.02.610.43.23.50.9Profit/(loss)
after tax(4.6)(1.5)18.45.69.32.5Ordinary
dividends10.93.610.93.310.92.9Profit/(loss)
retained(15.5)(5.1)7.52.3(1.6)(0.4)Fiscal Year Ended February
28199919992000200020012001Balance Sheet(GBP)(% sales)(GBP)(%
sales)(GBP)(%
sales)200220032004AssetsCash34.011.219.25.813.73.7Accounts
receivable27.89.230.39.230.38.1Inventories38.612.744.713.551.313.7Other
current assets12.54.115.64.717.54.7Net fixed
assets87.828.9104.731.7110.629.6Other assets0.00.06.01.86.71.8Total
assets200.766.1220.566.8230.161.5Liabilities and equityAccounts
payable13.04.320.56.210.72.9Taxes
payable11.33.711.73.57.11.9Accruals10.83.615.64.711.53.1Overdrafts0.00.00.30.10.70.2Other
current liabilities21.67.113.34.016.94.5Long-term
liabilities28.09.236.711.161.216.4Other
liabilities1.70.61.00.30.40.1Shareholders'
equity114.337.6121.436.8121.632.5Total liabilities and
equity200.766.1220.566.8230.161.5
Exhibit TN2Exhibit TN1The Body Shop International Plc
2001:Hypothetical Three-Year Forecast,Drawing on Case Exhibit
8Fiscal Year Ended February 28AssumptionsForecastIncome
Statement19992000200120022004200220032004Turnover303.7100.0%330.1100.0%374.1100.0%Growth13.0%422.7Cost
of sales127.742.0%130.939.7%149.039.8%% sales40.0%169.1Gross
profit176.058.0%199.260.3%225.160.2%253.6Operating
expensesexcluding exceptional costs151.449.9%166.250.3%195.752.3%%
sales52.0%219.8exceptional costs4.51.5%0.00.0%11.23.0%%
sales0.0%0.0Restructuring costs16.65.5%2.70.8%1.00.3%%
sales0.0%0.0Net interest expense0.10.0%1.50.5%4.41.2%% of
debt6.0%3.4Profit before tax (PBT)3.41.1%28.88.7%12.83.4%30.4Tax
expense8.02.6%10.43.2%3.50.9%% of PBT30.0%9.1Profit/(loss) after
tax(4.6)-1.5%18.45.6%9.32.5%21.3Ordinary
dividends10.93.6%10.93.3%10.92.9%Constant10.910.9Profit/(loss)
retained(15.5)-5.1%7.52.3%(1.6)-0.4%10.4Balance
SheetCash34.011.2%19.25.8%13.73.7%Plug, min.10mm4.7Accounts
receivable27.89.2%30.39.2%30.38.1%%
sales8.0%33.8Inventories38.612.7%44.713.5%51.313.7%%
sales13.7%57.9Other current assets12.54.1%15.64.7%17.54.7%%
sales4.7%19.9Net fixed assets87.828.9%104.731.7%110.629.6%%
sales30.0%126.8Other assets0.00.0%6.01.8%6.71.8%% sales1.8%7.6Total
assets200.766.1%220.566.8%230.161.5%250.7Accounts
payable13.04.3%20.56.2%10.72.9%% sales4.0%16.9Taxes
payable11.33.7%11.73.5%7.11.9%%
sales2.0%8.5Accruals10.83.6%15.64.7%11.53.1%%
sales3.5%14.8Overdrafts0.00.0%0.30.1%0.70.2%Plug0.0Other current
liabilities21.67.1%13.34.0%16.94.5%% sales4.0%16.9Long-term
liabilities28.09.2%36.711.1%61.216.4%Fixed61.2Other
liabilities1.70.6%1.00.3%0.40.1%% sales0.1%0.4Shareholders'
equity114.337.6%121.436.8%121.632.5%132.0Total liabs. &
equity200.766.1%220.566.8%230.161.5%250.7Trial assets246.0Trial
liabs. & equity250.7Trial plug(4.7)Min. cash
blance10.0Plug5.3
&APage &P
Exhibit TN3Revenue Growth13%COGS/Sales40%Sensitivity Analysis of
Overdrafts in 2004According to Variations in Growth Rate and COGS
RatioGrowth Rate in RevenuesCOGS to Sales
Ratio0.010%11%12%13%14%15%35%0.00.00.00.00.00.036%0.00.00.00.00.00.037%0.00.00.00.00.00.038%0.00.00.00.00.00.039%0.00.00.00.00.00.040%0.00.00.00.00.00.041%0.00.00.00.00.00.042%0.00.00.00.00.00.043%0.00.00.00.00.00.044%0.00.00.00.00.00.045%0.00.00.00.00.00.046%0.00.00.00.00.00.047%0.00.00.00.00.00.048%0.00.00.00.00.00.0Note:
bolded value is given in the "base case" of Exhibit TN2.
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