Corporate Reporting Assignment (Doc)
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Added on 2020-10-05
Corporate Reporting Assignment (Doc)
Added on 2020-10-05
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CORPORATE REPORTING
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................11.1 Company name along with its external auditors....................................................................11.2 Business model......................................................................................................................1ASSUMPTIONS..............................................................................................................................1ANALYSIS AND INTERPRETATION ........................................................................................23.1 Stating overall performance...................................................................................................23.2 Profitability ratios..................................................................................................................43.3 Activity Ratio.........................................................................................................................53.4 Liquidity management...........................................................................................................53.5 Financial structure and gearing..............................................................................................63.6 Investment Ratios...................................................................................................................6CONCLUSION................................................................................................................................7REFERENCES................................................................................................................................8APPENDIX......................................................................................................................................9Ration Analysis............................................................................................................................9
INTRODUCTION1.1 Company name along with its external auditorsThe main objective of this report is to give information about various shareholder whichmight be interested to invest in Hays Plc. This report would be providing appropriate analysis offinancial statements of Hays Plc for year 2017 and 2018 which is audited byPricewaterhousecoopers LLP.In the similar aspect, it would be observing percentage change from year 2017 to 2018along with proper ratio analysis such as profitability, liquidity, solvency, investment andefficiency. Furthermore, it would be using various financial statements for analysing its financialperformance and position of Hays Plc of these two consecutive years. Simultaneously, there willbe discussion of improvements which must be formed for enhancing other opportunities ofinvestment.1.2 Business modelThe revenue model is very simple in this organization as they gain percentage fee oncontingent aspect if any candidate is placed in particular role with specific client. In the similaraspect, its delivery model is with reference to deep industry expertise among contract, permanentand temporary recruitment markets. The most important thing is that there consultants are longtermed, trusted to both candidates and clients as well. They have equipped various technology,data analytics and tools in this industry as there focus is on net fees instead of turnover which issimply contributed from temp salary. Their capability for converting its net fees into operatingprofit is considered as key profit metric. The highest conversion rate is at 22% in this industry.There main belief is to have balanced exposure in their markets which is referred as keyfor driving superior and resilient financial performance along with better outcome for theirclients via economic cycle. During this exposure, there recruitment market would be having deepscale and expertise in 20 specialist areas on basis of skilled employment. Its market capitalisationis as 2.241 Billion (Hays plc (HAS.l), 2018).ASSUMPTIONSIn this report, it has shown % increase or decrease in specific financial variables of twoyear 2017 and 2018 for articulating worse or better position of its performance. Further, theperformance would be measured through various financial ratios such as activity, profitability,1
investment and liquidity. There is consideration of annual report of both specified year and thiswould be helping investors and potential shareholders.ANALYSIS AND INTERPRETATION 3.1 Stating overall performanceProfit and Lossstatement20182017% change(Increase/Decrease)Better/ Worse/Constant)Revenue5753508113.23%Better Cost of Goods sold4681412613.45%N/AGross profit107295512.25%Better Operating Income24721514.88%Better Net profit16613919.42%Better Balance sheet20182017Non current assets37528929.76%Better Current Assets1133102011.08%Better Current Liability7857179.48%WorseNon Currentliability246300.00%WorseEquity70158619.62%Better Cash flowstatement20182017Cash producedfrom operations16313421.64%Better Cash inflow fromoperations16313421.64%Better Cash inflow frominvesting activity-38-21-80.95%WorseCash inflow fromfinancing activity-111-70-58.57%WorseNet cash increasein cash1443-67.44%WorseInterpretation: The Return on capital employed has decreased over year 2017 to 2018 as36.32% to 34.12% which shows that overall performance of Hay Plc is decreasing as it could beobserved with reduction in turnover from asset. The above table is representing worsen andbetter performance of Hay Plc with its important financial statements. With context of statement2
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