firstgroup plc-uk
DESCRIPTION
Financial Analysis-based on 2009 reportTRANSCRIPT
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CONTENTS:
INTRODUCTION
FINANCIAL STATEMENT ANALYSIS
SHARE PRICE INDEX INFORMATION
DU PONT ANALYSIS
WACC/BEP/ROIC CALCULATION
RECOMMENDATIONS
CONCLUSION
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• Travel & Leisure Industry
• Publicly owned (LSE: FGP)
• FirstGroup Plc. is the leading transport operator in the UK and North America.
• Annualised revenues of over £6 billion a year.
• Employs some 136,000 staff and serves more than 2.5 billion passengers a year.
• Approximately 50% of group revenues are supported by medium or long term contracts. (providing stability against an uncertain economic background)
INTRODUCTION
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INCOME STATEMENT & BALANCE SHEET HIGHLIGHTS
• Sales increased by 31.43%.
• Operating Profit increased by 38.73%.
• Net Profit After Tax increased by 17.78%.
• Total and Net Assets increased by 22.33% and 14.12% respectively.
• Net Current liabilities tripled in size.
• Company issued both ordinary shares and premium shares.
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CASH FLOW STATEMENT
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CASH FLOW STATEMENT HIGHLIGHTS
• Cash generated from Operation activities has increase by 129 million.
• Net Cash from Investing activity was high in 2008 because of acquisition.
• Cash from Financing activities decreased significantly. (insurance captive assets)
• However, overall Cash increase was 89 million.
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COMMON SIZE ANALYSIS : INCOME STATEMENT
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COMMON SIZE ANALYSIS : BALANCE SHEET
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RATIO ANALYSIS : LIQUIDITY
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RATIO ANALYSIS : ASSET MANAGEMENT
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RATIO ANALYSIS : DEBT MANAGEMENT
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RATIO ANALYSIS : PROFITABILITY
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RATIO ANALYSIS : MARKET VALUE
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ANALYSIS : DU PONT SYSTEMS
A 18.2% return on equity is good in this industry.
For fiscal year 2009, 2.4% of the return on equity was due to profit margins and sales.
15.8% was due to returns earned on the debt at work in the business.
To improve its performance the company can increase its Operating efficiency and Asset use efficiency.
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SHARE PRICE PERFORMANCE-5 YRS
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ANALYSIS : WACC
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RECOMMENDATIONS• SHAREHOLDERS• Ameriprise Financial:8.01%• Lloyds TSB Group plc:6.87%• AXA:5.84% • JP Morgan Chase & Co:4.89% • Standard Life Investments Ltd:4.06% • LEGAL & GENERAL:3.98% • Resolution Investment
Services:3.14%
• For short term investment, we would recommend not to invest in First Group PLC.
• For long term investment, we would recommend to invest in First Group PLC.
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THANK YOU!