FINANCIAL REOURCE

Finance Resource Management Assignment



Table of Contents

INTRODUCTION3

DISCUSSION4

Lack of Government Support4

High fuel cost & Environmental Constraints4

Ratio Analysis5

Outlook7

CONCLUSION8

APPENDIX10

Solvency Ratios10

Profitability Ratios11

Activity Ratios12

Market Ratios13

Graphs14

Executive summary

Stage Coach Group plc has performed remarkably well over the years. The company has been coming up with innovations in transport and redefining the way consumers perceive of transport. The company aims to continuously improve its operational efficiency and is willing to acquire capital expenditures to improve the way how people travel. The company is on the look to further expand and grow its network. The company is struggling to inject more liquidity into its business, after analyzing the financials we get to find that the debt cost bears a significant portion of the balance sheet. The equity has gone into negative for 2012, which is a worrying sign for the business. The company still has generated good profitability returns in such adverse economic times. Assets have been utilized in a productive manner; good return on equity has been generated for the stockholders. The business will further expand and grow its operations in the year. The company needs to curtail its debt financing and should find newer equity source of financing to continue its progress. Finance Resource Management Assignment

Introduction

Stage coach group is involved in providing innovative and value driven transport services to over 3 million customers in North America and UK. The company's transport network comprises of over 12,000 vehicles including buses and trains and employs over 33,000 people. The adjusted earnings per share for the company have gone up by 6.7%, reaching to a level of 25.4 pence. Dividends have gone up by 10% to reach a level of 7.8 pence (Scott and Richard, 2011). The company is undergoing tremendous growth through bringing improvements in its operational activities and investing greatly in its fleet vehicles and rail network. Stage Coach Group aims to tap into new markets and continue its road to worldwide expansion. As expected the larger share of the company's operating profits are derived from the UK bus regions.

The Business has been coming up with innovative solutions to make consumers life easier by following state of the art operational efficiency and vehicles. The company has done tremendously well to improve the shareholders wealth over the years. The firm continues to offers lower and better fares to its valued customers and is always up for a challenge. The company is bidding to gain more access to the rail network in the UK, by integrating & forming alliances with other major rail providers. The revenue for the year ending 30 Apr 2012 stood at £2,590.7m. Operating profit for the year to April 30, 2012 stood at £237.2m.

The management has done remarkably well to deliver such outstanding results and contributed greatly towards improving shareholder's performance. The company is undergoing organic growth and looks to form liaison with other transport service providers in the form of franchise setup. The company keeps track of customer demand and takes periodic feedback from the ...