Investment Decision of Scylace Plc

Running Head: Investment Decision of Scylace Plc
Investment Decision of Scylace Plc
Name of the Student
Name of the University
Author Note

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Investment Decision of Scylace Plc
Executive Summary
The main focus of this paper is to discuss about the investment decisions of a grocery retailer,
Scylace plc. The investment decisions discuss about the opening of the two new branches at
two new locations or opening of only a new branch at a new location and the decision of
acquiring Helibeb plc, a retailer in clothing industry. In order to evaluate this decisions
Scylace plc has appointed as a management consultant which is me for making a correct
evaluation of the decisions. Therefore, the evaluation has been done based on the financial
reports and the financial statements for the two financial years 2017 and 2018. The collected
data discusses about the anticipated profit which the superstores of the new locations will be
and the accounting rate of return and the amount of average investments. Similarly, the
decision of taking over of Helibeb plc, a retailer in clothing industry over a takeover bidding
is done based on certain determinants which are- turnover of capital employed, equity returns
of shareholders, net profit margin, operating profit margin and book gearing. The report also
discusses about the conclusion and recommendation which has been done by me for the
evaluation of the investment decisions based on the two proposals of Scylace plc whether to
open only one or both the superstores and to acquire the Helibeb plc over bidding or not.

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Investment Decision of Scylace Plc
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Methodology-.........................................................................................................................3
Evaluation..............................................................................................................................5
Conclusion..................................................................................................................................7
Recommendation........................................................................................................................8
References and Bibliography...................................................................................................10

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Investment Decision of Scylace Plc
Introduction
The report discusses about the evaluation of the two proposals which was made by the
Scylace plc, a retailer of grocery. The first proposal talks about building of a new branch of
Scylace plc at a new location. On the other hand, the second proposal states whether it would
be feasible for this retail company to acquire Helibeb plc, which is retailer of clothing over
takeover bidding. The two proposals have to be evaluated by the management consultant for
which they have appointed me for the role. The evaluation has been practised based on the
available resources of the organization, Scylace plc and according to the available resources it
has been found that the amount of the resources is not sufficient enough for investing in both
of the proposals. Along with the evaluation of the proposals, the paper also discusses about
the methodologies which are important for making the evaluation of the decision of Scylace
plc. as per the availability of the resources and based on the rate of return whether to open
both the branches at the two new locations or to acquire Helibeb plc. Earlier, calculations
have been performed based on the financial statements and records of the companies for F.Y
2017 and 2018 and evaluation has been performed based on these calculations.
Discussion
Methodology-
Scylace plc is the specialist in the retail chain of grocery and they have initiated a
proposal for which they have appointed me as a management consultant for the purpose of
evaluating the two proposals, proposal 1 states whether it will be feasible for Scylace plc to
open both the superstores at two new locations or it should opt for building only one
superstore at a new location. The proposal 2 states whether it should acquire Helibeb plc over
a takeover bidding or not.