Full Question

Financial Concepts of Business GVC Holdings

What’s involved?

This assignment is a case study relating to GVC Holdings. It involves the reading and extracting of information from the most recently available annual report of this public listed company.

It consists of two parts: Part 1 and Part 2.

Part 1

(50% of the Assignment , i.e. 10% of the total assessment of Module FIN 1212)

Part 1 assesses the ability of students to read and extract information from the annual report of a public company listed on the London Stock Exchange as chosen by the group and thereafter answer all the questions as shown in Appendix 1 of this document.

As this part of the assignment will be marked electronically, it is important that you present your answers correctly so spellings should be correct and you should use the relevant currency sign where necessary.

There will be a mock assignment on MyLearning that will help you to learn to extract the relevant information from a company's annual report. The actual marked assignment will have the same questions but relating to a different company's annual report.

Please note that the assignment relate to the whole group of companies headed by the parent company, so the consolidated/group figures are the ones you need to extract, when completing your assignment.

Part 2  

(50% of the Assignment , i.e. 10% of the total assessment of Module FIN 1212)

Part 2 assesses the ability of students to research, analyse and interpret information, financial statements and annual reports of a public company listed on the London Stock Exchange as chosen by the group and present their findings in a well-structured financial report. Details of the requirements are shown in the Appendix 2 of this document.

There will be a sample assignment posted on MyLearning. The sample is there to give you an idea of what is expected from you. It is by no means an ideal, and you should use your own creativity/initiative to produce a work that is unique.

 

Appendix 1

PART 1: READING AND EXTRACTING INFORMATION FROM ANNUAL REPORT

All the following questions are related to the listed company chosen by your group (thereafter known as your Company) and should be answered in accordance with the information available from its most recently available Annual Report.

Apply consolidated amounts and information for the financial year under review in your answers.

Your answers should be submitted online.

Question 1

Give your full name and Student number

No marks will be awarded for the assignment if this section is not completed

STUDENT NAME          STUDENT NUMBER

……………………  ……………………….

Question 2

Marked out of 1.00

What is the name of your Company?

(Full name - correct spelling - case sensitive)

Answer: 

Question 3

Marked out of 1.00

What is the date of the financial year end as per the annual report you are reviewing for your Company?

Answer: 

Question 4

Marked out of 1.00

Which industry does your Company belong to?

Answer: 

Question 5

Marked out of 1.00

Who is the Company's chairman?

(full name - correct spelling - case sensitive)

Answer: 

Question 6

Marked out of 1.00

Who is the Company's chief executive officer (CEO)?

(full name - correct spelling - case sensitive)

Answer: 

Question 7

Marked out of 1.00

Who is the Company's chief finance officer (CFO)/ finance director (FD)?

(full name - correct spelling - case sensitive)

Answer: 

Question 8

Marked out of 1.00

Who is the Company Secretary?

(full name - correct spelling - case sensitive)

Answer: 

Question 9

Marked out of 1.00

What is the name of the firm of independent auditors (external/statutory auditors)?

(full name - correct spelling - case sensitive)

Answer: 

Question 10

Marked out of 1.00

Which MAIN category of current asset has the highest value?

(state the name, spelling it correctly)

Answer: 

Question 11

Marked out of 1.00

What is the amount of the main category of current asset with the highest value?

(with currency sign)

Answer: 

Question 12

Marked out of 1.00

From which statement/report within the annual report did you extract the above information for Questions 10 and 11?

(full name and correct spelling)

Answer: 

Question 13

Marked out of 1.00

What is the page number from which you have extracted the information for the above questions: Qns 10,11 and 12?

(the page number should be as on the actual document and not the electronic page number) (simply state the number, so e.g. 100 instead of page 100)

Answer:

Question 14

Marked out of 1.00

Which MAIN category of current liability has the lowest value?

(correct spelling)

Answer: 

Question 15

Marked out of 1.00

What is the amount of the main category of current liability with the lowest value?

(with currency sign)

Answer: 

Question 16

Marked out of 1.00

From which statement/report within the annual report did you extract the above information for questions 14 and 15?

(full name and correct spelling)

Answer: 

Question 17

Marked out of 1.00

What is the page number from which you have extracted the information for the above questions: Qns 14,15 and 16?

(the page number should be as on the actual document and not the electronic page number)

(simply state the number, so e.g. 100 instead of page 100)

Answer:

Question 18

Marked out of 1.00

How much are the Retained Earnings of the company?

(with currency sign)

Answer: 

Question 19

Marked out of 1.00

How much are the Trade Receivables (net) i.e. after allowing for any provision for doubtful debts?

(with currency sign)

Answer: 

Question 20

Marked out of 1.00

How much are the borrowings/loans under current liabilities?

(with currency sign)

Answer: 

Question 21

Marked out of 1.00

How much are the borrowings/loans under non-current liabilities?

(with currency sign)

Answer: 

 

Appendix 2

PART 2: FINANCIAL REPORT

Your are working for a consulting firm and you have been assigned to produce a financial report to a client, who is interested to invest some money (i.e. buying shares) in a public company listed on the London Stock Exchange.

You are required to research, analyse and interpret the relevant information of the company chosen by your group and make recommendation to your client through a well-structured financial report.

Your financial report with word limit of 2,000 must include all the following sections:

• Introduction

This section should explain what your report is about.

• Background of the Company

Write a brief introduction of your chosen company’s history, strategies, products, customers and the market competition of the industry that your chosen company is competing in.

• Financial statements analysis

Based on the 2016/17 annual reports of GVC Holdings, calculate, analyse and comment on the following two financial ratios for the 2015/16 and 2016/17. Apply consolidated amounts in your calculation of relevant financial ratios:

1. Gross profit margin
2. Return on capital employed

Once you have calculated each ratio for two years, comment on your results.

You MUST calculate and comment on these two ratios in order gain marks. You may also calculate other ratios if you feel that they will be relevant to your analysis.

• Conclusion and Recommendations

Summarise your findings to arrive at your conclusions and recommendations. You should offer your client your opinion on whether to invest money into your chosen company.

You may use additional relevant current news/information about your company if you feel that will influence your decision.

• Appendix

This should contain the detailed calculations of the relevant financial ratios, together with all financial statements that you have used to perform your calculations.