What was the profit and loss account for Petro Stopping Center as of January 1, 2024?
Petro_Stopping_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
| Share capital | Share premium account | Other reserves | Profit and loss account | BP Corporation North America shareholders' equity | Non controlling interests | Total equity | |
|---|---|---|---|---|---|---|---|
| At January 1, 2024 | 1 | 43,288 | 195 | (11,173) | 32,311 | 13,481 | 45,792 |
| Profit for the year | — | — | — | 2,453 | 2,453 | 818 | 3,271 |
| Items that may be reclassified subsequently to profit or loss | |||||||
| Cash flow hedges | — | — | (406) | — | (406) | — | (406) |
| Share of items relating to equity-accounted entities, net of tax | — | — | — | 1 | 1 | — | 1 |
| Other | — | — | — | (1) | (1) | — | (1) |
| Items that will not be reclassified to profit or loss | |||||||
| Remeasurements of the net pension and other post | |||||||
| employment benefit liability or asset | — | — | — | 103 | 103 | — | 103 |
| Total comprehensive income | — | — | (406) | 2,556 | 2,150 | 818 | 2,968 |
| Dividends paid | — | — | — | (9,500) | (9,500) | — | (9,500) |
| Preference share dividends | — | — | — | — | — | (839) | (839) |
| Share-based payments, net of tax | — | — | — | 178 | 178 | — | 178 |
| Other | — | — | — | — | — | (1) | (1) |
| Dividends paid to non-controlling interests | — | — | — | — | — | (38) | (38) |
| Transactions involving non-controlling interests, net of tax | — | — | — | — | — | 8 | 8 |
| At December 31, 2024 | 1 | 43,288 | (211) | (17,939) | 25,139 | 13,429 | 38,568 |
Source: Item 14 — Other investments (FDD pages 131–208)
What This Means (2025 FDD)
According to Petro Stopping Center's 2025 Franchise Disclosure Document, the profit and loss account as of January 1, 2024, was a deficit of $11,173. This figure is part of a larger table detailing the company's equity and financial performance over several years.
This negative balance in the profit and loss account suggests that, at the beginning of 2024, Petro Stopping Center had accumulated losses exceeding its accumulated profits. However, it is important to consider this figure in the context of the company's overall financial position. The total equity at January 1, 2024, was $45,792, indicating that the company had substantial assets even with the deficit in the profit and loss account.
For a prospective franchisee, this information provides a snapshot of Petro Stopping Center's financial health at a specific point in time. While a negative profit and loss account balance might raise concerns, the overall positive equity suggests that the company has the resources to manage its liabilities. It would be prudent for a potential franchisee to investigate the reasons behind the accumulated losses and to assess the company's strategies for improving profitability. Additionally, reviewing subsequent financial statements to see how the profit and loss account has evolved since January 1, 2024, would provide a more complete picture.
The FDD also shows that the profit for the year 2024 was $2,453. However, dividends paid during the year amounted to $9,500, contributing to a profit and loss account of ($17,939) as of December 31, 2024. These figures highlight the importance of analyzing the complete financial statements and understanding the factors that influence the profit and loss account balance.