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# 2.1 The case of a fictitious company

The case of an imaginary company, Remote Sensors Plc, will be used for the purposes of the worked examples throughout this course. It is important that you familiarise yourself with these financial statements so that you understand the workings in conducting various types of financial analysis.

## Example: The case of Remote Sensors Plc

Remote Sensors Plc is a small single entity company that manufactures electrical equipment for commercial and household use. The company was established in 2021 and has just one warehouse. The management is gradually expanding the company’s business.

Assume that you are a trainee in an accounting firm that has been approached by a client who is interested in making a substantial investment in the company’s shares. You are required to prepare a report on Remote Sensors Plc’s financial position and financial performance.

The following data have been extracted from the statements of financial position and the statement of profit or loss of Remote Sensors Plc.

## Remote Sensors Plc: Statements of financial position at 31 December 2025, 2024 and 2023

| 2025 | 2024 | 2023
--- | --- | --- | ---
| £ | £ | £
Assets |  |  |
Land and buildings | 26,310 | 20,130 | 19,880
Computers and equipment | 2,460 | 2,340 | 2,820
Vehicles | 10,381 | 9,490 | 9,580
Total non-current assets | Total 39,151 | Total 31,960 | Total 32,280
Current assets |  |  |
Inventory | 2,056 | 2,501 | 1,860
Receivables | 1,982 | 1,750 | 2,280
Other current assets | 1,280 | 2,175 | 1,670
Cash and cash equivalents | 7,980 | 9,270 | 6,350
Total current assets | 13,298 | 15,696 | 12,160
Total assets | Total 52,449 | Total 47,656 | Total 44,440
Equity |  |  |
Equity share capital (nominal value £1 each) | 16,000 | 16,000 | 16,000
Reserves |  |  |
Retained earnings | 25,980 | 24,155 | 21,790
Total equity | 41,980 | 40,155 | 37,790
Non-current liabilities |  |  |
Interest-bearing loans and borrowings | Total 5,600 | Total 2,990 | Total 2,580
Current liabilities |  |  |
Trade payables | 3,200 | 2,166 | 1,610
Interest-bearing loans and borrowings | 1,000 | 1,745 | 1,900
Corporation tax payable | 669 | 600 | 560
Total current liabilities | 4,869 | 4,511 | 4,070
Total liabilities | 10,469 | 7,501 | 6,650
Total equity and liabilities | Total 52,449 | Total 47,656 | Total 44,440

## Remote Sensors Plc: Income statements for the years ended 31 December 2025, 2024 and 2023

| 2025 | 2024 | 2023
--- | --- | --- | ---
| £ | £ | £
Sales revenue | 17,860 | 16,995 | 15,990
Cost of sales | (10,590) | (10,660) | (9,876)
Gross profit | 7,270 | 6,335 | 6,114
Administrative expenses | (3,150) | (2,820) | (2,630)
Profit before interest and tax | 4,120 | 3,515 | 3,484
Net interest payable | (890) | (390) | (359)
Profit before taxation | 3,230 | 3,125 | 3,125
Taxation | (290) | (250) | (210)
Profit attributable to shareholders | Total 2,940 | Total 2,875 | Total 2,915

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OpenLearn - Financial statement analysis and interpretation
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