Need Help: Analysis of Financial Statements


Need Help: Analysis of Financial Statements

Assessment Brief

Module Title: Financial Analysis
Assessment Title: Analysis of Financial Statements
Assessment Type: Formal Report to Board of Directors
Restrictions on Time/Length : 3,000 words (excl. Bibliography) +/- 10%
Individual/Group: Individual
Assessment Weighting: 50%

 Assessment Task : NB refer to Marking Scheme

 

Lecturer will assign you a FTSE [LONDON] listed company.

 

Requirements

  1. Analyse and discuss its financial performance and financial position. Your analysis will be supported by appropriate and relevant ratio calculations and explanatory comments. Trends should be identified and analysed. All workings to be presented.                                                                                                                                     60 marks
  2. Recommend TWO initiatives the company might take in order to improve the position as shown by your analysis of the ratios. 20 marks
  3. A competitor organisation wishes to buy 10% of your company’s shares.

Estimate the value of a 10% stake, using at least two valuation methods, showing and explaining your workings.                                                                                               20 marks

 

                                                                                                                                    Total = 100 marks

 

Listed FTSE [London] companies

http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/indices/constituents-indices.html?index=UKX

 

Further Information

 

  1. Merely computing ratios and observing whether they are improving/disimproving is NOT analysis – the requirement is to establish WHY the ratios are trending as they are. It is STRONGLY recommended that you examine competitors’ ratios, seek industry norms, and source published professional opinions [eg brokers’ / investment reports]. Please refer to Marking Scheme.

 

  1. The lecturer has at his disposal, academic software which compares each assignment with every previous assignment. Any instance of collusion / academic impropriety will be dealt with severely.

 

 

 

 

 

 

 

 

 

 

Marking Scheme – Individual Assignment

 

Q1

  1. Computation of 5 sets of ratios over at least 3 years = 10 marks

 

  1. Interpretation of ratios to include competitor comparison, industry standards, researched professional opinion = 50 marks

 

Q2

 

  1. Two well argued and explained initiatives, 10 marks each

 

Q3

  1. Valuation of 10% investment – needs 2 methods – 10 marks each

You need to do about SABMiller, you will find it in the list

 

 

Company Ticker Sector Market cap (£bn) Employees
Anglo American plc AAL Mining 6.09 100,000
Antofagasta ANTO Mining 4.71 4,005
ARM Holdings ARM Engineering 13.2 2,000
Ashtead Group AHT Equipment rental 4.26 12,810
Associated British Foods ABF Food 25.77 102,000
AstraZeneca AZN Pharmaceuticals 51.23 57,200
Babcock International BAB Engineering 4.65 34,000
BAE Systems BA. Military 16.01 107,000
Barratt Developments BDEV Building 5.86 5,000
Berkeley Group Holdings BKG Building 4.60 2,050
BHP Billiton BLT Mining 41.88 46,370
BP BP Oil and gas 63.13 97,700
British American Tobacco BATS Tobacco 71.4 87,813
British Land BLND Property 7.13 177
BT Group BT.A Telecomms 45.61 89,000
Bunzl BNZL Industrial products 6.38 12,368
Burberry BRBY Fashion 5.65 10,851
Capita CPI Support Services 7.38 46,500
Carnival Corporation & plc CCL Leisure 24.85 86,800
Centrica CNA Energy 10.72 40,000
Coca-Cola HBC AG CCH Consumer 5.1 38,312
Compass Group CPG Food 20.21 471,108
CRH plc CRH Building materials 10.9 76,433
Diageo DGE Beverages 46.01 25,000
Dixons Carphone DC. Retail 5.16 40,000
EasyJet EZJ Travel 6.17 11,000
Experian EXPN Information 11.1 17,000
Fresnillo plc FRES Mining 6.99 2,449
GKN GKN Manufacturing 4.79 50,000
GlaxoSmithKline GSK Pharmaceuticals 67.38 97,389
Glencore GLEN Mining 16.96 57,656
Hammerson HMSO Property 4.42 277
Hikma Pharmaceuticals HIK Manufacturing 3.71 6,000
Imperial Brands IMB Tobacco 35.78 38,200
Inmarsat ISAT Telecomms 4.47 1,590
InterContinental Hotels Group IHG Hotels 5.75 345,000
International Consolidated Airlines Group SA IAG Travel 11.01 58,476
Intertek ITRK Product testing 4.67 33,000
Intu Properties INTU Property 3.89 2,180
ITV plc ITV Media 10.15 4,059
Johnson Matthey JMAT Chemicals 4.79 9,700
Kingfisher plc KGF Retail homeware 7.8 80,000
Land Securities LAND Property 8.19 700
Marks & Spencer MKS Retailer 7.01 81,223
Merlin Entertainments MERL Leisure 4.42 28,000
Mondi MNDI Manufacturing 6.37 26,000
National Grid plc NG Energy 36.14 27,000
Next plc NXT Retail clothing 6.9 58,706
Pearson PLC PSON Education 6.52 37,000
Persimmon plc PSN Building 6.34 2,450
Randgold Resources RRS Mining 5.89 6,954
Reckitt Benckiser RB Consumer goods 46.32 32,000
RELX Group REL Publishing 25.54 28,500
Rexam REX Packaging 25.54 19,000
Rio Tinto Group RIO Mining 34.84 67,930
Rolls-Royce Holdings RR. Manufacturing 11.8 55,500
Royal Dutch Shell RDSA Oil and gas 160.12 90,000
Royal Mail RMG Delivery 4.41 150,000
SABMiller SAB Beverages 67.32 70,000
Sage Group SGE IT 6.26 12,300
Sainsbury’s SBRY Supermarket 5.02 150,000
Severn Trent SVT Water 5.04 8,051
Shire plc SHP Pharmaceuticals 22.52 4,200
Sky plc SKY Media 17.5 22,800
Smith & Nephew SN. Medical 10.27 11,000
Smiths Group SMIN Engineering 3.84 23,550
Sports Direct SPD Retail 2.4 17,210
SSE plc SSE Energy 14.03 19,965
Taylor Wimpey TW. Building 5.99 3,860
Tesco TSCO Supermarket 14.92 519,671
Travis Perkins TPK Retailer 4.46 24,000
TUI Group TUI Leisure 76,000
Unilever ULVR Consumer goods 90.42 171,000
United Utilities UU Water 6.36 5,096
Vodafone Group VOD Telecomms 56.55 86,373
Whitbread WTB Retail hospitality 7.09 86,800
Wolseley plc WOS Building materials 9.20 44,000
Worldpay WPG Payment services 5.9 4,500
WPP plc WPP Media 19.01 162,000

 

 

 

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