Bolton Business School: Investments Financial Analysis Report, BAM4005

This assignment, completed for the Finance for Business module (BAM4005) at the University of Bolton, involves a comprehensive financial analysis of a company and a review of a potential investment opportunity. The assignment is divided into two tasks. Task 1 requires a group to select a FTSE 350 company, analyze its financial statements from the annual report, and prepare a 15-minute presentation for potential investors, followed by a 10-minute Q&A session. The presentation covers working capital, sources of finance, financial performance, and the clarity of information provided. Task 2 requires the preparation of a management report on a capital investment project for Cussons Limited, using provided data and applying various investment appraisal techniques. The report should include an evaluation of the techniques' strengths and weaknesses, along with a clear recommendation. The assignment emphasizes effective communication, teamwork, and the application of financial theories to real-world scenarios, with detailed marking criteria focusing on structure, referencing, discussion, evaluation, and conclusion. The submission includes both presentation materials and a management report.

UNIVERSITY OF BOLTON
BOLTON BUSINESS SCHOOL
Business Management Programme
Module Name and number: Finance for Business BAM4005
Tutor: Nurun Nahar
Assignment Number: 002 (S2 2016/17)
Assignment weighting: 70%
Assignment Title: Investments Financial Analysis
Assignment Length: 2,500 words (including presentation & report)
Issue Date: March 2017
Submission Deadline: Presentation will be held on Tuesday 16th of May
2017 from 9:00am
ALL materials for Task 1 must be submitted on
2nd of May 2017 and Task 2 on Tuesday 16th of
May 2017.
Learning Outcomes
This assessment satisfies the following learning outcomes as specified in your
module guide.
No. Learning Outcomes Assessment Criteria
2 Demonstrate the skills and knowledge to
interpret financial statements
group presentation and report
4 Demonstrate an understanding of the role
of financial information in business
decision making.
group presentation and report
Please submit this form with the completed assessment. Ensure that each page of your
of assessed work bears your student identification numbers, but not names.
---------------------------------------------------------------------------------------------------------------------
We declare this submission to be our own work.
‘Signed’ (student numbers of group members)……………………………………………….
Date……………………………………………………………………
Page 1 of 8

Financial Analysis
Role and Scenario
You have been appointed as a trainee business analyst. You are required to work as
part of a group of trainees and prepare an analysis of a company and to review an
investment opportunity for a client business.
 The group must have between 3 and 5 members.
 The creation of the groups will be managed by students themselves.
 An agreement to work together must be signed by all members of the group in
Week 10 (in class)
 The agreement will also record details of the company selected by the group.
 Completion of the agreement will be reviewed after the presentation
Peer review sheets will be used to agree the allocation of credit between the
members of each group.
Task 1 (50%) Analysis of Financial Statements
As a group you should select a company from the FTSE 350 from an industrial
sector. You will need to obtain a copy of the most recent annual report/accounts.
Each group must select a different company.
http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/indices/
constituents-indices.html?index=NMX
You are required to use the information provided in the company’s current report and
summarise it for the benefit of potential investors, who will be invited to attend a short
presentation provided by your group. You have also been asked to assess the relevance
of annual reports in general. They do not know why companies go to all the trouble of
producing these quite bulky and often complicated documents.
Prepare a presentation, based on the contents of the annual report, to be made to an
invited group of potential investors. The presentation will be for 15 minutes (you will NOT
be allowed to overrun) and will be followed by 10 minutes of questions. You may wish to
consider the following:
Working capital requirement
Form /mix of existing finance
Financial performance
The clarity and usefulness of the information provided by the company
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Task 2 (50%) Management Report (Cusson’s Limited).
Your line Manager Mrs Cooper has instructed you to prepare a review of a potential
investment opportunity. She has advised you to provide all relevant documents and/or
spreadsheets setting out your workings.
The task is an open request for help and guidance. Using the data provided, you should
provide the company with a clear financial analysis making appropriate use of
techniques and theory from your learning materials.
You are required to provide management with information in whatever form/style you
consider to be the most suitable to answer the task. Concepts and theories must be
explained in relation to the topics covered. As part of the task you may consider the
sensitivity of the investment and non-financial aspects of the decision.
The report (demonstrating professional skills) must be submitted in week 15.
Company Information
The accountant at Dynasty Limited Mr Sean Penn has been arrested suddenly and is
not expected to return for some time.
The Managing Director is seeking guidance in reviewing two capital projects the
company are considering with the aim of delivering increased profits for distribution to
shareholders.
He has a limited knowledge on capital investment appraisal but does understand that
there are a number of techniques that can be used to assist in the decision making
process.
He is expecting your group to apply as many techniques as is practical and to make a
clear recommendation.
To assist his understanding he has also requested that the strengths and weaknesses of
the various techniques are fully evaluated together with your view as to the usefulness of
capital investment appraisal.
The information is provided on the next page.
Page 3 of 8

Cussons Limited – Data relating to alternative investments
The initial investment will be £250,000 and it is expected the cost of capital will be 10%.
There will be a residual scrap value of £ 50,000 at the end of each project.
The net after tax cash flows of the projects are as follows to be received at the end of
each year:
Project 1 Project 2
£ £
Year 1 70,000 70,000
Year 2 70,000 70,000
Year 3 120,000 70,000
Year 4 80,000 90,000
Year 5 70,000
Assessment Information and Guidance
Page 4 of 8

Please note that this is a complex assessment and the importance of effective
communication and the ability to work as a productive member of a group must not be
underestimated.
The assignment has two main elements/tasks:
Task 1 15 minute presentation (using PowerPoint) and a ‘summary sheet’ of key
information (ratios) followed by 10-minutes of questions
Task 2 Management report on investment appraisal (to be submitted in Week 15)
The presentations will take place during the allocated lecture and tutorial times in Week
15. Times will be allocated in class.
Task 1 (50%)
T1: Presentation
The introduction to the company should be completed in 1 minute. Provide basic
information not a marketing campaign. Refer to recent strategic changes and new plans.
T1: Analysis of sources of finance
Outline the main sources of finance:
- Profit
- Debt
- Loans
- Gearing (consider capacity for additional debt)
Identify the form of finance which might be required.
Look for indication/evidence of recent changes (for 5 year period)
T1: Analysis of cash flow
You should assess the following:
- Overall liquidity
- Working capital ratio acid test
- Working capital cycle??
T1: Profitability, Activity and Investor Ratios
Assessment of profitability and how any profits are use/applied (i.e. EPS and dividends)
You will need to monitor share price over a reasonable period of time– to
assess/analyse any key changes. Also, consider the relative performance of the
company.
T1: Summary Table of Ratios
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You should present a full table of investment ratios and other ratios that you deem to be
significant (see class handouts). All equations must be shown in full and sources of data
must be identified.
The PPT needs to show the title of each ratio, financial year(s), and clear values and
labels.
Avoid the temptation to lift ratios from the accounts. You must be able to perform each of
the calculations for any data that you present.
T1: 5-10 Minute Summary/Questions (50%)
You must be prepared to respond to questions relating to the task. The grade for the
weight for the task will be equally divided between the report and responses to
questions.
Each member will be expected to respond to questions.
T1: Presentation Skills
1. Practice in advance – a live rehearsal will be valuable.
2. Do not read from the screen or report or large sheets of A4 paper. Use postcards
to hold key words.
3. Do not place too much text on the PPT screen.
4. You might wish to use charts/tables to present your findings.
5. Look smart.
6. Support each other in the Q&A parts of the presentation
7. Make sure that you understand the content of the whole presentation.
8. In the event that a participant misses the presentation- the show must go on!
9. Think about comparative data for the sector and significant competitors.
10. All participants must contribute to the presentation and provide responses during
the Q&A sessions.
11. Keep minutes (brief) of all meetings. Moodle can be used to record
communication by request.
12. Place key documents in Moodle.
13. Do not use a white background with black text! (You have the potential to
demonstrate your PowerPoint presentation skills here so be professionally
creative).
T2: Management Report (50%)
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1. The information should be presented in the form of a management report. Please
make sure it is word-processed in Arial 12 point font, be double-spaced, on
A4 size paper with each page being numbered in the footer, numbering to
be centred.
2. All written work must be referenced using the Harvard Referencing System,
full details of which are available from the UOB Library website.
TASK 2: MARKING GUIDE
Marks are awarded for structure and referencing as well as for the extent of the literature
review, depth of analysis/evaluation and formation of a conclusion/recommendation
based on the discussion and evaluation.
Answer is expected to include: (Max. 50)
Structure/ Referencing and bibliography 10
Discussion 20
Evaluation 10
Conclusion/Recommendation 10
Submission of Work
ALL materials for Task 1 must be submitted on Tuesday the 2nd of May 2017 (week 13)
And Task 2 on 16th of May 2017 (week 15). Late submissions will be subject to the
published penalties.
One member of each group must be nominated to submit the hard and soft copies of
the work:
 Task 1 – Presentation (PowerPoint Slides)
 Task 1 – Summary of Ratios (Make sure that the data/pages are formatted
for printing)
 Task 2 - Group report (Investment Appraisal)
Hard copies are to be submitted to the ‘box’ in the Student Centre/Mall. Soft copies
should be submitted to the specific Turnitin areas in Moodle. Revision areas will be open
two weeks prior to the final deadline but will close a few days before the deadline. The
final few days will be for single submission of the final versions.
Agreement on next page.
Page 7 of 8

Business Management Programme
Module Name and number: Finance for Business BAM4005
Tutor: ___________________________
Assignment Title: Investments Financial Analysis
Agreement
The members of the group are:
No Student
Number
Name Signature and Date
1
2
3
4
5
The company select for the ratio analysis is:
The nominated student is:
Accepted by tutor (Name, date signature)
Completion notes (by tutors, after the presentation)
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