FINANCIAL REPORTING

Financial Reporting

TASK 1: FINANCIAL ANALYSIS REPORT

Executive Summary

Company Introduction

Matthey is specialized in chemicals business which is focusing on the main skills and attributes in the catalysis, fine chemicals, precious metals and they process technology.

Matthey is continuously developing the technology for about two hundred years, which demonstrates the ability of the company to main its leadership all over the globe by the adaptation to its dynamic needs of its customers. It is very accurate in its own policies of environment, many of the products by Matthey has impacted majorly with benefits for the environment and it has also enhanced the life quality for millions of its consumers all around the world. The group consists of three international divisions, namely, Precious Metal products, Environmental Technologies and Fine Chemical and Catalysts. The market leader in the field of metal business is the Nobel metals business which is dealing in the fabrication and the refining of wide variety of the products that are made out of (PGM) platinum group metals. By intense investment in Research and Development and the usage of key knowledge of market, the organization has established the leadership in global market on majority of its services and products.

Industry

The pharmaceutical and chemical industries are the major contributors in the UK's economy. The membership now extends across maintenance and engineering, scientific, supervisory, marketing, sales, administration and management grades, there total numbers are exceeding around 20,000. The turnover is more than £50 billion and it is one of the largest manufacturing industries in UK. Over the past decade this has grown more than five times quicker than the average of all the existing industries of UK. The number one exporter that is with an annual trade surplus of under £5 billion. The industry is spending around £2 billion in each year on a new capital investment. The research and development expenditure is equal to about 10% of sales. The UK's chemical industry is providing a direct employment for about 214,000 and is supporting several hundred thousand jobs additionally within the UK's economy.

A relatively higher portion of the population is employed in the medium size enterprises while comparing it with the European countries. The overall image of the chemical industry in UK is facing cutback in bulk quantity and the growth of the bio-chemical operations are also concentrating. But still this industry has breakup many of the old giants existing in the industry as most of the small businesses have been sold out to management, specialty operators or venture capitalists.

Financial Analysis of the Company

Financial Analysis is the process of assessing the financial position of a company by analyzing its stability, viability and profitability. One of the primary objectives of financial analysis is to recognize changes in financial trends, to help measure the progress made by an enterprise and identify a relationship to draw a logical conclusion on the performance of the company. Another major aspect of a financial analysis is comparing the performance of the company with its ...