Description

You are required to take an in-depth analysis and interpretation of Dunelm Group via their published financial statements with emphasis on the strengths and adaptability of the business.

This will include an evaluation of internal and external factors on the future prospects for this company.

You must cover the most recent published accounts for the company (and any interim updates) and also to compare performance against the sector(s) in general AND ( DFS (Furniture) Plc )

You should demonstrate an in-depth understanding of your analysis, with coherent and reasoned discussion.

Obtain financial statements (full Annual Reports) for this company for the last three years. The Annual Reports may be electronic or hard copies. See the company websites for more details. You will need to read the reports in some detail and refer to these in your submission. (Do not include in appendices)

Remember this is a business report, so it should include an introduction and suitable conclusion. These are included in the word count, but appendices are not. (An executive summary is not required).

Weighting of marks for the report (Task 4):

·         A brief introduction setting out the scope of your report, including the background to the company covered and an explanation of their position within the industry sector and the economic environment.                (5% weighting)

Your report must include discussion of the performance of the company by reference to your analysis of the following:

·        Efficiency, liquidity/solvency, investment, profitability ratio analysis. Your financial statement analysis should also include industry/sector data.

                                                                                                 (20% weighting)

·        In addition you should make use of techniques such as common-size financial statements, inter related financial ratios (e.g. Dupont analysis), trend analysis and segmental analysis to tell your story about the company.(20% weighting)

·        Cash flow analysis and financing - you should analyse the Cash Flow Statement  of the company. The analysis should highlight the nature of cash flow (i.e. where did the bulk of cash flow come from and how did the company deploy its cash flow during the financial year). In short, the analysis should be linked to the various financial ratio analysis, and demonstrate how it impacted on the overall company’s financial performance and financing.                       (10% weighting)

·         Z- scores & other predictive techniques regarding future prospects including general financial data, share price movements and latest news/ views on the company.                                                                                 (20% weighting)

     You are expected to make use of reputable on-line resources (such as the London Stock Exchange, Bloomberg, FAME, etc.) to provide some of the ratios used in your analysis - providing that you reference your sources correctly. Any workings to prove your own analysis should be correctly referenced and shown in detail in the appendix.