Harthmoor: operating profit fell by two thirds
New to this industry?Start with its one-minute summary: Restaurants and food service
| Line | Last year (GBP m) | This year (GBP m) |
|---|---|---|
| Revenue | 200 | 205 |
| Cost of goods sold (COGS) | 120 | 145 |
| Gross profit | 80 | 60 |
| Operating costs (excluding D&A) | 40 | 40 |
| EBITDA | 40 | 20 |
| Depreciation and amortization (D&A) | 10 | 10 |
| Operating profit (EBIT) | 30 | 10 |
| Interest | 6 | 6 |
| Profit before tax | 24 | 4 |
| Tax (25 percent) | 6 | 1 |
| Net income | 18 | 3 |
The prompt
Harthmoor, a UK maker of kitchen appliances, shared its income statement for the last two years in GBP millions (see the table above). Explain the fall in operating profit and say where to look next.
Interviewer-led: the interviewer hands you the statement and asks what drove the fall, then where to look next.
Practice with a partner
1. Send the interviewer link to a friend. They read the case aloud and hold the answers.
2. You open the candidate view: you see only the prompt, a timer and a notes box.
3. Speak the case out loud. Your partner shares data when you ask, then scores you with the rubric.
Interviewer view
For the person running the case
Candidate view
For the person answering the case
My notes on this case
0 of 5,000 characters. Saves automatically.