Assessment Task You are a senior executive in a publicly quoted company. Your board of directors has asked you to review the financial and operating performance of your company listed on the FTSE 100 [NOT a Financial services company] and provide them with a written report of your findings.
Requirements
1. Briefly review the company's stated focus and goals as noted in its mission statement and/or in its CEO/Chairman's statement [Annual Report].
2. Analyse and discuss its financial performance and financial position in that context. Your analysis will be supported by appropriate and relevant ratio calculations and explanatory comments. Trends should be identified and analysed.
3. A competitor organisation is attracting your interest. You have the choice of buying 10% of their shares now OR of continuing to monitor their performance, leaving open the possibility of a share purchase at a later stage.
A) Estimate the value of a 10% stake in the competitor, showing and explaining your workings.
B) Recommend [with strong justification] whether or not to proceed with the investment.