FINANCIAL ANALYSIS

Financial Analysis & Management

Financial Analysis & Management

Introduction

As a Finance Manager, it is important to know about the financial performance of the companies who are working with the company, in relation to this, to develop a strategic supply relationship with a view to take over, it is important that to know the financial aspects of the AFC Energy which belongs to the Electrical Equipment sector and deals in the semiconductors and related devices.

The study is related to the AFC Energy which is engaged in the design and development of alkaline fuel cells, a technology developed to generate electricity from hydrogen. AFC Energy is the world's leading developer of low cost alkaline fuel cell technology. Focused on a large scale, industrial application AFC Energy's technology is fully scalable to provide clean electricity on demand. The fuel cell has the potential to be the catalyst which transforms the way in which industries of today produce energy for tomorrow. In 2009, AFC Energy plc was considered amongst the best performing companies on the AIM, the London Stock Exchange's international market for smaller growing companies. AFC Energy plc incurred pre-tax losses of 2.29 million pounds for the financial year 2009 - 2010, down from 2.96 million pounds one year ago; in January 2010, AFC Energy plc won a fuel cell order from Centrica.Context

This paper focuses on the financial status of AFC Energy plc. This study will describe the importance of choosing the right strategy. Internal and external analysis of AFC Energy plc made in order to maintain the status as the low cost jet airlines. It includes the model of the strategy in use. The strategic choice of AFC Energy plc makes the company a leader in the Alternative Energy Sector. The company has become an example in the strategic management because of its successful implementation of the strategy. Internal and external analysis of AFC Energy plc shows the set of managerial decisions and actions that determine the long run performance of the corporation. It includes environmental scanning, strategy formulation, strategy implementation and evaluation and control. AFC Energy plc is one of the leading energy companies in UK which helps in generating electricity from hydrogen.

Risks

If AFC Energy is taken on as a strategic supplier then the key risks associated with AFC Energy include the investment risk; it describes the possibility of financial losses in the investment activities of the enterprise. In accordance with the types of activities are separated and the types of investment risk; the risk of real investment and financial risk of investing. All the types of financial risks associated with investment activity, belong to the so-called "complex risks", divided in turn into separate subspecies. For example, in the real investment risk can be identified risks of delayed completion of the design work, untimely completion of construction works; delayed the opening financing the investment project, the loss of investment attractiveness of the project due to a possible decrease in its effectiveness, etc. Since all the subspecies of the investment risks are associated with the possible loss of the company's capital, they are also included in the ...