As a senior analyst of a large UK-based asset management firm, you have been asked to prepare a summary presentation of Greggs plc as an investment prospect. You are expected to carry out your analysis using the company’s most recent Annual Reports as well as other publicly available information where appropriate. Your summary should be presented as a poster and should include:
A brief review of the company’s commercial operations and strategic positioning (using SWOT or any other suitable tool).
Calculation and interpretation of appropriate ratios and comments on the company’s ability to:
generate profits and return for investors; (ii) meet its short and long-term obligations; and
(iii) make efficient use of its resources.
A reasoned conclusion.
In preparing your poster, use the latest corporate Annual Report & Accounts released by Greggs plc alongside other sources that may offer new or complementary information (e.g., Reuters, Bloomberg, The Financial Times, etc.).
Relevant extracts from the Annual Report can be incorporated into your poster such as Chairman’s Statement, Strategic Report, financial statements and notes where appropriate.
Students will be expected to show knowledge of the present and likely future environment within which the company operates. The assignment will be assessed as follows: 20%: Understanding of the company’s commercial operations and strategic positioning. 50% Correct calculation and interpretation of appropriate ratios and company performance. 20% Overall presentation, structure, quality of writing, research and referencing.
10% Reasoned conclusion.In this assessment the following learning outcomes will be covered:
Critically appraise the corporate governance of the company.
Identify and critically discuss the long-term sources of finance of the company.
Identify and critically discuss the long-term uses (CAPEX) of finance of the company.
Show clear understating of the difference between (b) and (c).
Show understanding of discounting cash flows, computation of NPV, IRR and payback period.
Show ability to provide recommendations on the investment decisions bases on NPV, IRR and payback period.
Show understanding of how to compute share price based on dividend discount model and provide recommendation on investing (or not) in the stock.
