Financial reports

Topics: Financial ratios, Financial statements, Revenue Pages: 23 (6425 words) Published: October 14, 2013
The Research and Analysis Project report is written based on the Topic: The business and financial performance of Primark stores limited over the three year period 2007 to 2009. This report highlights more on the operations, strategy, business and financial performance of Primark stores limited. This is written in comparison to one of its competitors, BHS Limited. REASON FOR CHOOSING THIS TOPIC

The reason why I have chosen this topic is that, as a student accountant, business and financial analysis is very important as it will widen my understanding of financial analysis of companies. I will be coming across them on the practise field and that I should be able to analyse them without any difficulty. More so companies want to have a deep understanding of where their business is leading to and so tend to rely on their business and financial performance analysis. This will help them to recognise their strengths and weaknesses and not only that but also the opportunities and threats which lie ahead of them. It will also help companies forecast ahead of time based on the historical financial analysis made. In this way companies will be able to propose healthy strategies in the sustenance of their company warranting an uninterrupted growth in both sales and profitability. Being a guideline in analysing the financial situation of a company, this analysis is also relevant and critical in modern day business worldwide as it outlines the complete image of the company in question. REASON FOR CHOOSING THIS ORGANISATION

Being one of the most popular clothing retail stores Primark stores limited has gotten into the media in both good and bad name. As a low cost-focus giant in the clothing industry, Primark stores limited has been attracting a very large market in the United Kingdom. Despite its low cost, it is also criticized on its low quality standard as compared to its competitors like Marks and Spenser, BHS and Debenhams. With these high valued competitors having ‘store wars’ with Primark Limited, I have become keen to know how good Primark is doing in terms of its business and financial performance. I am also very curious about the impact to the profitability of Primark on the ethical issues concerning Primark using child labours in third world countries to make its products. I will also like to know how the recent economic downturn affected the financial performance of the business of Primark between the 2007 to 2009 periods. With a recent change in turnover of 13.64% in 2009-2008, I am keen to know what contributed to this change. Throughout this project, I have made a clear assessment between Primark stores plc and BHS limited. AIMS AND OBJECTIVES OF THE REPORT

The main objective of this report is to analyse the business and financial operations of Primark stores limited. This will be looking at whether it is worthwhile to invest in the low-cost clothing retailer, Primark. Since both potential and existing shareholders are keen on knowing the profitability and going concern of Primark stores limited, this will serve as a guide to them on whether it is worthwhile to sell their shares, invest in buying more shares from Primark or to hold on to what they already have in the company. I have therefore analysed the financial performance of Primark stores in both in comparison to its previous years and one of its main rivals in the United Kingdom. This project goes further in assessing the internal and external environment of Primark using the SWOT analysis in analysing Primark’s strength, weakness, Opportunities and Threats. RESEARCH QUESTIONS

In this project I have looked into answering the following research questions so i can come out with a vivid conclusion as to whether it is financially viable for shareholders and potential shareholders to continue to invest their interest in Primark. How successful is Primark in terms of its profitability and...
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