Financial Decision Making : James Halstead Plc and Mihelmersh Brick Holdings Plc

Running head: FINANCIAL DECISION MAKING
Financial decision making
Name of the Student
Name of the University
Author Note

FINANCIAL DECISION MAKING
Abstract:
In the paper, a critical examination of the financial performance of the companies listed on
London stock exchange has been demonstrated. The report is prepared to be presented to the
board of directors on the financial performance of the company and comparing the
performance with its competitor. The chosen company for analysis and its competitor is
James Halstead Plc and Mihelmersh Brick holdings Plc. Financial data has been analyzed for
the last five years which has been retrieved from the financial reports published by the
companies. The interpretation of the financial results of the companies reveals the fact the
James Plc has outperformed Michel over the years.
Table of Contents

FINANCIAL DECISION MAKING
Introduction:...............................................................................................................................3
Discussion:.................................................................................................................................3
Section A:...................................................................................................................................3
Section B:.................................................................................................................................11
Conclusion:..............................................................................................................................12
References list:.........................................................................................................................14
Introduction:
The report intends to critically analyze the financial performance of the company
operating in construction and material sector. The chosen companies for analysis is James
Halstead Plc and one of its competitors named Michelmersh brick holdings plc. Financial

FINANCIAL DECISION MAKING
performance of the main company is compared with its competitor using the ratio analysis
technique for the financial data retrieved from its annual report of the past five years. In
addition to this, the corporate governance of James Halstead Plc has been evaluated.
James Halstead is a company engaged in the manufacturing and distribution of
flooring products and was founded in year 1915. The company was established to innovate
new products and it further expanded its manufacturing capabilities of producing flooring
products. With the growth in demand, the company made heavy investment in the flooring
items and developed its sales and manufacturing capabilities overseas in countries such as
South Africa, Australia and New Zealand. James Halstead has a wide portfolio of the
products that is sourced from outside as well as manufactured. Flooring manufacture is the
major product of the company and their technologists are capable of making a homogenous
vinyl sheet product (jameshalstead.com 2020). The company carries out its operation in
various economic environment and forms a contributor to the gross domestic product of the
company.
Discussion:
Section A:
The financial performance of James Halstead is evaluated using the technique of ratio
analysis and evaluation of the financial stability of the company is done by comparing it with
the competitor. Several ratios such as profitability, solvency, efficiency, liquidity have been
examined to assess the financial performance of the company. In addition to this, some non-
financial ratios such as employee turnover and customer retention ratios have been computed
to analyze its non-financial performance and its relationship with key stakeholders such as