DEBENHAMS

Debenhams Annual Report

Table of Content

Introduction4

Part One4

CEO's Report4

Finance Director Review5

Chairman's Statement6

Part Two: Accounting Policies's Compliance and IAS categories for Assets7

1. Property, plant and equipment:8

2. Inventories:9

3. Cash and cash equivalents:9

Part 3 Comparative Ratio Analysis10

Current Ratio11

The Quick Ratio11

Interest Cover11

Gearing Ratio12

Conclusion12

References13

Debenhams Annual Report

Introduction

Annual report reviews and illustrates a company's performance over a given year. The report is of crucial importance to the company's management to gauge its operating and financial performance (Friedlob & Schleifer 2003 19). The report set the basis of investment decisions for shareholders and creditors of the company. The paper evaluates the annual report of Debenhems, a fashion retailer with headquarters in UK. For the purpose, this paper first explores three components of a typical annual report, including chairman's report (statement), ceo's report (review) and Finance Directors Report. Following the paper investigates the company's balance sheet, thourougly establishing the IAS compliance of the company with respects to its assets' reporting and categorization. Finanlly, the paper reviews the company's liquidity and solvency position using a comparative analysis of a set of financial ratios.

Part One

CEO's Report

Debenhams current CEO is Rob Templeman. In his review contained in the company's 2010 report, he provides his evaluations and opinios regarding performance highlights, market conditions, product and growth strategies, expansion, acquisitions and internationization of the company. All the comments and opinions are backed by presentation of financial, market and business facts shown through key performance indicators, balance sheet, and strategy timelines. As noted by Templemen, the company hopes to maintain customer loyalty and further increase its market share. Trading conditions for the retail sector were stable, according to a report in the first half of the year, as consumer concern about unemployment and government finances were balanced by lower interest rates and rising disposable incomes. Sales rose at Christmas, although affected by the bad weather in the UK and Ireland early in January.

However, sales growth continued in the last week of the reporting period. Further investments are planned in Debenham in 2010 at 49.4 million pounds, of which 10.1 million pounds will be linked to the cost of purchasing a brand Magasin. According to Rob Templeman, the group Debenhams as we know it today is the result of acquisitions across the UK, under the leadership of its chairman Ernest Debenham. The first acquisition was that of Marshall & Snelgrove in Oxford Street, London, 1919, of the following include Harvey Nichols in the exclusive area of Knightsbridge in 1920. Most shops kept their identities redeemed until a common aspect was decided and implemented. The company joined the London Stock Exchange in 1928.

Finance Director Review

The financials disclosed in the review of finance director reflect the overall auditing experience and findings. These findings will help the shareholders to evaluate the the performance of the company, it will also tell about the whole financials of company, which will be motivating for investors. According to Chris Woodhouse “Revenues of Debenhams increased by 11.6% and amounted to 187.8 million pounds a comparison with a ...