Supply and Delivery of Sportswear for City of Glasgow College and Glasgow Clyde College

Please refer to Part 4 B Economic and Financial Standing of the SPD

The College will use the following ratios to evaluate a bidder's financial status.

Bidders must confirm within their response to the relevant question within the 'Qualification envelope' that as a minimum, 2 out of the 3 ratios can be met and what the value of each ratio is.

The 3 ratios to be evaluated are:

Profitability - this is taken as profit after tax but before dividends and minority interests. If a company makes a profit then it is a pass for this ratio;

Liquidity - this is calculated as current assets less stock and work in progress, divided by current liabilities. If the answer is greater than or equal to 'one' then it is a pass for this ratio;

Gearing - this is calculated as the total external secured borrowing (short term and long term) divided by shareholder funds expressed as a percentage. If the answer is less than or equal to 100% it is considered a pass for this ratio.

Where 2 out of the 3 ratios cannot be met, the College may take the undernoted into consideration when assessing financial viability and the risk to the College, providing that the Bidder can supply evidence to substantiate any of the mitigating criteria. This list is not exhaustive and other criteria may be considered where proposed by a bidder as mitigating factors:

Would the bidder have passed the checks if prior year accounts had been used?

Were any of the poor appraisal outcomes 'marginal'?

Does the bidder operate in a mar…