Land Securities Plc: Financial Analysis, CSR, and Performance KPIs

This report assesses the performance of Land Securities Group Plc, focusing on financial and non-financial metrics. It begins by explaining the Triple Bottom Line approach adopted by the company, emphasizing social, environmental, and financial considerations. The report then calculates and interprets various financial ratios, including liquidity, profitability, solvency, and efficiency ratios, based on the company's financial statements for 2019 and 2020. Key Performance Indicators (KPIs) related to safety and social responsibility are elaborated upon, along with a discussion of the company's Corporate Social Responsibility (CSR) initiatives, covering economic, legal, ethical, and philanthropic duties. Furthermore, the report briefly mentions the rivalries of Landsec Plc and concludes with a balanced scorecard approach to measure the organization’s success in non-financial areas. Desklib offers a wealth of similar solved assignments and study resources for students.

MEASURING
SUCCESS

Contents
TASK....................................................................................................................................................3
Explain the Triple bottom line of Land Securities Plc ltd..................................................................3
Calculate the ratio and interpret them with respect to the financial statements..................................4
Elaboration and justification on the Key Performance indicators of Land Securities Group Plc.......7
Discuss the Corporate Social Responsibility of the Land Securities Group Plc.................................8
Rivalries of Landsec Plc:...................................................................................................................9
Putting a balanced scorecard approach to measure an organization’s success in non-financial Areas
.........................................................................................................................................................10
CONCLUSION..................................................................................................................................12
References..........................................................................................................................................13

Executive Summary
Performance management assist the business in tracking the performances of its
employees. Performance management helps the company in knowing whether the employees
need extra support or not, high- level training or a hike. It is very crucial for the purpose of
maintaining high – level standards in the businesses. The upcoming report looks into the
results and accomplishments of Land Securities Group Plc.

INTRODUCTION
The term measuring performance refers to the evaluating the results on what a
company has achieved and what it has lot over a financial year. It is very crucial to do so as it
helps the various people associated with the company to make informed and correct decisions
regarding investments and other. This helps the various stakeholders to keep an eye on the
financial position of a company and how it is going to meet its future requirements. The
report looks into the various elements that a business performs to meet the desires of the
shareholders (Goundar and et.al., 2021). It also highlights the Balanced scorecard approach of
an organization and analyzation and interpretation of the financial performance attained by
the Land Securities Group Plc by using different metric like Corporate Social Responsibility
strategies, ratio analysis, competitors’ analysis etc.
TASK
Explain the Triple bottom line of Land Securities Plc ltd.
Triple bottom line is the expansion of business with the consideration of
environmental and societal factors. The organization must focus on these elements also
instead of just focusing on the earning profit. Companies adopt new methods and
technologies that depletes and weakens the ethics. The Land Securities Plc. has made certain
responses and many efforts to bring balance between such components. They are as listed
below:
 Social standards:

Opening doors to employment and education: The Landsec has made the commitment to
make £25m of society standards by 2025 through their community program. In 2020 the
company has helped the people by providing earning sources to 180 people and has also
engaged 298 students in the education related programs.
Donation and Charity: It has benefited around 3400 people and has also donated £ 2 m to the
charity partners.
Provides equal opportunities: Till 2020, the business has planned to protect the employees
and employers against the discrimination practices. It has decided to make real livings wages
to the people who are directly or indirectly working with the organization.
Employment mix: The company has made improvements in the profile in terms of gender,
disability etc. The company is focusing on providing more jib opportunities to female and
disable person.
 Environmental Value:
Effective and efficient utilization of natural resources: The company also promises to bring
reduction in the carbon emissions till 2030 by 70 %. The company has introduced the new net
zero strategy for the improvements. They have made 5-year plans to accomplish this goal.
Renewable of electricity: The Landsec Plc has made the commitment to save 100 %
electricity they are using solar panels for Bluewater and Hatfield Galleria Outlet center in
developing the land pipeline so that the objective can be attained.
The company is also aware of recycling the waste which is produced out of the operational
activities performed in the business organization.
 Financial:
The company is doing great in terms of sustainable corporate performance. Due to this, it is
able to attract large number of customers, buyers, investors, creditors etc. The Landsec Plc
examines and reduce material nature physical and financial risks.
The corporate focuses on the production of goods and services by the ethical means and
sustainable sources.
Calculate the ratio and interpret them with respect to the financial statements:

Liquidity Ratio: This is the financial metric that helps in the determination of
potential that a firm has to meet its current obligations and debt with the help of current
liabilities. It evaluates the ability to repay its short – term loans without raising the finance
from external sources. This ratio is segmented into the current ratio and liquid ratio. The
calculation is mentioned below:
Current Ratio = Current Asset / Current Liabilities
In year 2019 = 524 / 1225
= 0.43: 1
In year 2020 = 1859 / 1249
= 1.49: 1
Liquid Ratio = Liquid Assets / Current Liabilities
In year 2019 = 501 / 1225
= 0.41: 1
In year 2020 = 1835 / 1249
= 1.44: 1
Interpretation: For the year 2019, the company is unable to pay its C.L. and is not having
enough funds to meet the commitments. But in 2020, it can be seen that the firm has enough
C.A as it is more than the ideal one that is 1:1, but as far the L.R. is considered the business
will have to sell its stock for making the payments. It is not in that good liquidity position.
Profitability ratio: This ratio helps in the computation of profit earning capacity of a
business. It tells the productivity of an organisation. The ratio determines how much a
company earns even after making the expenses in accordance with both related to production
and non – related to production.
Gross Profit = Gross profit / Sales * 100
In year 2019 = (-40 / 757) * 100
= (-0.05284) * 100
= -5.28 %

In year 2020 = (-690 / 741) * 100
= (0.9311) * 100
= -93.11 %
Net Profit = Net Profit / Sales * 100
In year 2019 = (-123 / 757) * 100)
= (-0.1624) * 100
= -16.24 %
In year 2020 = (-119 / 741) * 100)
= (-0.1605) * 100
= -16.05 %
Analysis: As per the calculations it is observed that the company is in distress while earning
profit in both the years. The cost involved is more than its earnings in 2019 and 2020. This
also results in the problems in expanding the operations for the future scenarios. Thus, the
company should take preventive measures to control and direct its costs.
Solvency Ratios: It is a tool that calculates how effectively the cash flows of the
business organization can meet its long – term debts. It measures the whether the firm is
financially sound and fit or not. (Bruna and Nicolò., 2020)
Debt equity Ratio = Debt / Equity
In year 2019 = 2889 / 9920
= 0.29 Times
In year 2020 = 4361 / 8750
= 0.50 Times
Interest Coverage Ratio = Earnings before interest and tax / Interest on long term debt
In year 2019 = 40 / (10)
= -4

In year 2020 = 690 / (165)
= -4.18
Results: From the above computation it is seen that the company’s solvency ratio is less than
20 % which is a good signal. It means that the business is in healthy position and the lower
the solvency ratio is the greater are the chances to default on the debt commitments.
Efficiency ratios: These includes assets turnover ratios, stock turnover ratios and receivables
turnover ratios. This derives the ability of the business organization to generate revenue by
making the use of its assets and the potential of the firm to manage those assets.
Stock turnover ratio = Cost of Goods Sold / Average Inventory
In year 2019 = 271 / 23
= 11.78 Times
In year 2020 = 274 / 24
= 10.29 Times
Interpretation: The computed S.T.R is more in both the years but it been declined in 2020.
But even then, the company has a good capability to sell its stock on time and is making good
use of assets and also managing them in an effective manner.
Elaboration and justification on the Key Performance indicators of Land Securities Group
Plc.
The KPIs can be defined as the areas that requires the innovative mechanisms to work
and bring improvements. The company discovers such areas for improving the ability of the
business to perform well in the future. The KPIs are listed below:
Safety grounds: The Landsec Plc provides the related components to the various
organizations, so that they attain the capability to cope- up with the risk factors that may arise
to the internet - based businesses. It is very important for the business firm to have trust and
faith in its blended features to collect the persona shades and nuances of the alliances to
identify and gain the knowledge on the areas where a company is required to work.
Social belief: The 2020 is the very first year obviously, where the Land Conservation
Congress position has progressed through the endeavours and actions of the Society’s trust.
This firm uses attractive approach to formulate the activities grounded on the KPIs and give

direction to the company. The outsiders have helped with the description from the
informational sources and this is a wide aspect. This is really relevant because the
recommendations and presumptions from the external information sources can come out to be
the meaningful perspectives.
To ensure the sustainability group, the Landsec Plc has attentive governance. For this
purpose, the committee meets on the quarterly basis and implement the strategies. They also
review the target achieved towards it. They prepare reports that involves the discussion on the
performance they have accomplished in relation to the commitments that a company has
made.
Furthermore, the organization motivate production with their partners to lesser the impact on
the climate change. The company launch the questionnaires to the suppliers to understand the
collaborative impact and then they perform accordingly.
Moreover, the Landsec Plc supports customers in the issues that are related to the
sustainability. For instance, the organizations assist the customers in carrying out the projects
associated with energy efficiency and also creates the bottom- line benefit.
Discuss the Corporate Social Responsibility of the Land Securities Group Plc.
The company earns by using the resources of society. So, it is the prime duty of a
business to do something good for the society in return (Koontz., 2021). The pyramid
includes economic, legal, ethical and philanthropic duties. These promises are mentioned in
detailed below:

Economic Duty: The range on the pyramid is really low. It involves that tasks are productive
but they are not beneficial to the company. So, with the lack of this, it will be tough for the
company to deliver benefits and represent itself. Profits are important for both the investors
and owners but giving a thought on the economic activities shall also be the important
concern.
Legal Duty: The society also expects the company to carry – out its operations in a way that it
does not harm the environment and by complying with the rules and regulations with the state
and local authorities. From the above Triple bottom line approach, it is clear that the
company is able to do so and thus delivering the complete promise in this prospect.
Ethical Responsibilities: In this the laws are not enough the society expects the businesses to
perform their activities in such a manner that it does not harm the sentiments of the society.
The business shall use ethical code of conduct for its regulations (Silva, Nuzum and
Schaltegger., 2019). The objective behind this expectation is that the company will be
responsive to the values, principles and should safeguard and protect the interest of its
stakeholders.

Philanthropic Responsibilities: This duty means seeking to promote the welfare of others.
The Landsec Plc is involved in opening doors to the employment, it is making donations to
the people and charity members. It is also using various methods to avoid harm and wastage
to the natural resources. It is doing what is good for the society and giving back to it in
various forms.
Rivalries of Landsec Plc:
Land Securities Group Plc is a largest commercial property development and
investment company in United Kingdom. It secures and manages the property. The
competitors are as follows:
Capital Shopping centers Group It works as an investment holding company.
And it is involved in managing the
portfolios of investments in the property
industry. It is the United Kingdom based
company that operates and manages the
shopping centers.
Canary Wharf Group It is also a UK- based company. It has its
headquarters in London, England. It has
developed the property of around 100 acres.
It has created more space in London as
compared to other organizations.
The British Land Company It is the biggest investment company in
United Kingdom. This organization centers
on the fulfilment of assets, and London
campuses and retails.
The Landsec Plc can face tough competition from the above listed companies. All
these companies have the dealings in real – estate. The company can gain competitive
advantage by:
 By providing full transparency: If an organization is being transparent about its
business achievements and results then it would be a best approach to satisfy the
shareholders and gain their trust.

 Focus on engagement: A business enterprise shall keep communicating with the
stakeholders about the project and company. Engaging them by maintaining the
communication will help in leveraging its relations with their shareholders group.
 By sharing evidence and research: The company must not think that the stakeholders
are unaware about the information. The group of shareholders can get the data from
many sources which is not under the organization’s control. So, the company should
not presuppose that it is the only one who holds the data (Roy and Sharma., 2021).
They shall provide the research and consider the recommendations and suggestions
given by their shareholders as it might be useful to them in some or the other ways.
 Keeping track on the sentiments: The emotions that a shareholder has towards the
company depends on the project evaluations and the issues associated with that. It is
very important to understand what they actually feel about the project and work
according to their segments to achieve the success and gain their support.
Putting a balanced scorecard approach to measure an organization’s success in non-financial
Areas
Balanced scorecard is the system of management that gives the reviews and feedbacks
on the process i.e., the internal and the external results so that the corporate can improve
the performance and results continuously. This card basically has four components that
deals in financial, customer, internal processes and learning and growth.