Analyzing Financial Strategies: Greggs, Inmarsat, Morgan, Renishaw

This report offers a financial analysis of four UK-based public limited companies: Greggs plc, Inmarsat plc, Morgan Advanced Materials PLC, and Renishaw plc. The analysis focuses on the companies' strategic financial approaches, drawing insights from their annual reports. For Greggs, the report examines key financial performance indicators, long-term strategies for managing investment risk, and debt to equity ratio. For Inmarsat, it highlights strategies for diversifying the product base, treasury management, and operational efficiency. The analysis of Morgan Advanced Materials covers long-term strategies for building core capabilities, R&D investments, and improving operational efficiency. Lastly, for Renishaw, the report discusses the emphasis on patented technologies, investment strategies managed through pension schemes, and dividend policies. The report uses the 2017 annual reports of each company, supplemented by additional financial news articles to provide a comprehensive overview of their financial strategies and performance.

MANAGEMENT FINANCE AND
OPERATION

GREGGS PLC
 Greggs plc is operating as bakery food-on-the-go retailer in United
Kingdom as it is offering various range of frozen and fresh bakery
products, drinks, snacks, muffins, salads and soups.

STRATEGY
 Implication of key financial performance indicators for measuring
performance and integrating social responsibility
 Long term strategy for decreasing investment risk as it includes policy for
holding sufficient bond and cash assets for recouping anticipated benefit
payments.
 Improving cash flow matching with assets and liabilities of particular
scheme.
 Debt to equity ratio standards are differing among industries and various
are capital intensive as compared to others
 Huge capital for carrying core operations as its debt to equity is zero
which says absence of debt

STRATEGY
 Utilising finance from equity capital
 Risk of investor is associated with debt which is non existent and
capability for raising debt in the future

INMARSAT PLC
 It gives mobile satellite communication services on sea, land and in air
worldwide as well. Generally, it is operating by five segments which are
US Government, Maritime, Aviation, Global government and enterprise.

STRATEGY
 Diversifying product base, contractual revenue and product base supported
through excellent operational performance.
 Augment network with innovative and low cost technologies to give
additional capacity
 Treasure management ensures about position of funds with their obligations
in proper currencies
 Maintaining adequate undrawn borrowings facilities

STRATEGY
 Increasing return and short term investments on basis of counterparty limits
along with credit ratings
 In Maritime, they had attained strategic progress for long term future with
leading distribution partners.
 Long term operational efficiency with implementation of innovative billing
system and enhancement in ERP
 Does not hold or issue derivative financial instruments for trading or
speculative purpose.

MORGAN ADVANCED
 Morgan advanced materials PLC is operating as advanced engineering
and material science company which is laying special emphasis on
carbon, ceramics and composites primarily in United Kingdom.

STRATEGY
 Long term strategy for building three distinctive core capabilities such as
material science, application engineering along with customer and end
market focus with portfolio of scalable global business
 R&D investment has been raised for extending Morgan's technical lead for
accelerating innovative product development.
 Improving multiple aspects of capabilities of sales and process along with
efficiency.
 Strengthening leadership capability and deepen functional capabilities
throughout business and this group will be investing in executive training and
creating clear path for engineers and technologists.

RENISHAW PLC
 Renishaw plc is metrology organization
which manufactures, sell, distributes
and services metrology and healthcare
products throughout the world. It offers
metrology products such as additive
manufacturing system, machine tool
probe systems, co-ordinate measuring
machine products, styli for probe
systems and performance testing
products.

STRATEGY
 Laid special emphasis on technologies which give patented methods
and products who support product strategies with £68.8 m
expenditure on R&D and engineering during entire year.
 Investment strategy is managed through pension scheme trustee who
are operating in line with statement of principles of investment.
 Invest for attaining long term growth by expanding global marketing
and distribution infrastructure with increment in research
development and activities of manufacturing capacity.
 Appropriate maintenance of progressive dividend policy

STRATEGY
 There is implication of cash and cash equivalent which consists of
short term deposits and cash balances.
 The receivables and trade receivables along with cash are
predominately held with reference to functional currency but with
exception of Euro trade receivables along with balances of foreign
currency as they are short term in nature.
 Presence of treasury policy for managing financial risk arise
through foreign currencies and for increasing interest income on
cash deposits.

REFERENCES
 Annual Report of Greggs Plc. 2017. [Online[. Available through
<http://www.annualreports.com/HostedData/AnnualReports/PDF/LSE_G
RG_2017.pdf>.
 Annual Report of Inmarsat Plc. 2017. [Online[. Available through
<http://www.annualreports.com/HostedData/AnnualReports/PDF/LSE_IS
AT_2017.pdf>.
 Annual Report of Morgan Advance. 2017. [Online[. Available through
<http://www.morganadvancedmaterials.com/media/5937/morgan-annual-
report_2017.pdf>.
 Annual Report of Renishaw Plc. 2017. [Online[. Available through
<http://www.annualreports.com/HostedData/AnnualReports/PDF/LSE_R
SW_2017.pdf>.
 Jason Fuller. 2019. Is Greggs plc (LON:GRG) As Strong As Its Balance
Sheet Indicates?. [Online[. Available through
<https://in.finance.yahoo.com/news/greggs-plc-lon-grg-strong-
104057184.html>.

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