The company

Although Thompson had grown rapidly after it had established UK manufacturing facilities, sales
turnover had flattened in recent years. Table 29.1 shows the profit/loss statement, and Table 29.2
the balance sheet for this period. Thompson is currently regarded as a poor performer within
Murray, and finds it difficult to attract investment for the further growth in sales the company
believes is possible. The organisation chart for Thompson is shown in Figure 29.1, and the main
functions can briefly be explained as follows.

Table 29.1

Consolidated profit and loss account (£000) 1996 1997 1998 1999 2000 2001 Turnover 2784 4192
6462 8961 8349 9073 Cost of sales 1953 2934 4394 5735 5594 6069 Gross profit 831 1258 2068
3226 2755 3004 Admin expenses 1011 1360 1807 2320 2210 2720 Trading profit (180) (102) 261 906
545 284

Table 29.2

Consolidated balance sheet (£000) 1996 1997 1998 1999 2000 2001 Fixed assets Tangible assets 270
1021 1507 2294 2095 1943 Current assets Stocks 1189 1487 1589 1907 2288 2794 Debtors 565 979
1152 1356 1648 2010 Cash in hand (200) (103) (53) 752 505 230 Creditors 432– 621– 1207– 1564–
1156– 1023– Net current assets 1122 1742 1481 2451 3285 4011 Costing (3) Payroll (1) Accounts (4)
Finance Director Peter Nuttall Sales (6) Sales (8) Support Sales Manager Reg Fox Design (4) Drawing
Office (6) Engineering Directo

Figure 29.1 Thompson Telescopes: organisation chart

Managing Director John Tulk

Costing (3) Payroll (1) Accounts (4) Finance Director Peter Nuttall Sales (6) Sales (8) Support Sales
Manager Reg Fox Design (4) Drawing Office (6) Engineering Director Jack Rule Production (2)
Engineering Buying (2) Stock (3) Controller Warehouse (3) Controller Works (25) Manager
Manufacturing Manager Bronwen Curtess