CONNAUGHT PLC: FINANCIAL ANLAYSIS

Connaught plc: Financial Analysis



Connaught plc: Financial Analysis

Introduction of the Company

Connaught plc is A United Kingdom-based Company. The Company is engaged in the provision of integrated asset services to the public and Private Sector. The Company Operates in Two business divisions: Social Housing and Compliance. Its Social Housing Division Provides housing maintenance, compliance and estate services. Its Compliance division Provides safety, health and risk management solutions. Its Subsidiaries include Connaught Partnerships Limited, Connaught Environmental Ltd, Connaught Compliance Limited, Connaught Technical Solutions Limited, Control Limited and Connaught Academy Limited, Among Others. On October 16, 2007, the company acquired Water Technology Ltd. On October 22, 2007, it Acquired National Britannia Holdings Ltd. On July 28, 2008, MSF Ltd Acquired it. On September 15, 2008, it Acquired Lowe Group Holdings Ltd. In July 2009, Connaught plc Announced the acquisition of UK Fire (International) Limited and Igrox Limited (Collins, 2011, pp. 211).

Financial Analysis of Connaught Plc

Verification of the company's financial condition is primarily the financial analysis based on data from the financial statements. However, the same data without the knowledge of the company's environment may affect the assessment of its condition. Only the so-called analysis, standing of the company, the financial data with an evaluation of its position in the market, provides a basis for determining the credibility of the company and its economic opportunities, which in turn allows you to make various strategic decisions (Ong, 2002, pp .85).

Profitability Ratios

Profitability is a fundamental goal, and is essential for the survival of the company's work and persistence, and very looking forward to shareholders. It is a relationship between the profits made ??by the company and the investments that contributed to these profits. Profitability ratios are used to evaluate the company's ability to generate profits from operating activities compared to expenses and other costs associated during a specified period of time. It is also an important tool to measure management efficiency in the use of resources in their possession enough (Allen, 2010, pp. 32).

ROA % (Net)

The return on asset of the company is on decreasing trend. In 2007 the return on assets of the company was reported to be 7.13 which decreased to 7.09 in 2008. In 2009 the ROA of Connaught plc again decreased to 6.01 and further decreased in the preceding year. In the year 2011 the return on asset was the lowest and was reported to be 4.09.

ROE % (Net)

Like the return on asset, the return on equity of the company has also shown a decreasing trend. In 2007 the Return on equity was reported to be 26.21 which also the highest if compared with the proceeding 5 years of the company. In 2008 the ROE of the company was 25.06 and in 2009 it further decreased to 23.51. In 2010, the ROE decreased by 6.62 resulting in the ROE to be 16.89. The ROE in 11.89 was the lowest in these 5 years.

EBITDA

The EBITDA margin of the company however shows an increasing ...