Financial Analysis of Primark
Contents Background 3 Introduction 3 Financial result 4 Percentage changes and Index number 5 Industry sectors and competitors analysis 6 Financial strengths and weaknesses of Primark 8 Where Primark would be ranked financial within its sector on the LSE 9 Forecast Primark’s 2011 post tax profits 10 Techniques (ratio analysis) evaluation 12 Corporate governance recommendations 13 Conclusion 16 Appendix 17 References 31
Background
At present, the Primark Ltd has 162 stores located in the UK, Spain and Ireland. They are subsidiary of Penney Brand Company which is based in England and recently announced it has hired its 25,000th person among its stores (Nagdeman, 2009).
According to a recently research, the Primark company rose its selling space by 65% in the past 12 months, which is clearly showing how successfully these stores are being and ever-expanding. With regards to products and services it is very obvious to see demand has increased quickly in recent years trading. This may because the Primark Ltd is dealing in a fashionable market but with affordable clothing for everyone in the mainstream market at the moment (Yun, 2008).
Introduction
This report will concentrate on the financial analysis of Primark. To begin with, the trend analysis is used to analyse the financial situation of Primark from 2006-2010. Additionally, ratio analysis technique is provided to analysis the financial performance of Primark by comparing with Next Ltd and New Look Ltd. Besides, financial strengths and weaknesses will be indicated. Furthermore, by using the industry sector index to explain where Primark would be ranked financially on the LSE will also provide in this research. Moreover, forecast the 2011 post-tax profits will be illustrated. Evaluate the techniques and recommend the corporate governance structure will be reflected at the end of this research.
Financial result
The financial result in 2010 is well ahead of market expectations
Background
At present, the Primark Ltd has 162 stores located in the UK, Spain and Ireland. They are subsidiary of Penney Brand Company which is based in England and recently announced it has hired its 25,000th person among its stores (Nagdeman, 2009).
According to a recently research, the Primark company rose its selling space by 65% in the past 12 months, which is clearly showing how successfully these stores are being and ever-expanding. With regards to products and services it is very obvious to see demand has increased quickly in recent years trading. This may because the Primark Ltd is dealing in a fashionable market but with affordable clothing for everyone in the mainstream market at the moment (Yun, 2008).
Introduction
This report will concentrate on the financial analysis of Primark. To begin with, the trend analysis is used to analyse the financial situation of Primark from 2006-2010. Additionally, ratio analysis technique is provided to analysis the financial performance of Primark by comparing with Next Ltd and New Look Ltd. Besides, financial strengths and weaknesses will be indicated. Furthermore, by using the industry sector index to explain where Primark would be ranked financially on the LSE will also provide in this research. Moreover, forecast the 2011 post-tax profits will be illustrated. Evaluate the techniques and recommend the corporate governance structure will be reflected at the end of this research.
Financial result
The financial result in 2010 is well ahead of market expectations
References: At present, the Primark Ltd has 162 stores located in the UK, Spain and Ireland. They are subsidiary of Penney Brand Company which is based in England and recently announced it has hired its 25,000th person among its stores (Nagdeman, 2009). Forecast Primark’s 2011 post tax profits Primark’s owner Associated British Foods plc posted revenue of Primark has increase 13% to £3043m, and the adjusted operating profit is fell 8% from 335m to 309m (Associated British Foods plc, 2011) Corporation Tax rate will be reduced by 2% to reach 26% from April 2011 ( “BBC”, 2011).