Analysis Of Ten Different Industry Companies Accounting Essay

Category: Accounting

This paper outlines and evaluates the operations of 10 different UK Company, in different industry. It attempts to highlight how UK operations has benefited different industry and influenced its investment analysis. In Part 1 I will identify draft a policy document which sets out a suitable statement of aims for the company and explain those investments should or should not make. Part 2 of the paper chooses ten company quoted shares which fit within the stated policy document, should list these shares and explain the reasons for the inclusion in our assignment. Finally part 3 we need to compare the 10 different industry check price of the shares as at the end of May 2008 and at the end of may 2009.With FTSE 100 Index and FTSE 250, Part 4 conclusion.

Part 1

Ethical policy

The company maintained of supple bank facilities in order to cover probable borrowing requirement.

The company payment policy to supply compensation packages at marker rate which successful performance.

The remuneration packages offer by the company are generally comparable with of other UK based international business.

The recompense package does not raise any environmental, social or governance risk by mistake motivating irresponsible behaviour.

The financial statement are in the appraisal the level of interconnect income with a payment to the telecommunications operation.

For establish asset lives of property plant and equipment purposes.

The accounting policy for decide the fair value of financial instrument is described in the financial statement.

Selecting an appropriate discount rate for the instrument to determined of this rate on its assessment of the market.

Maintaining debt financial plans.

Managing the concentration and profile of debt maturities.

Maintaining foreign exchange rate.

Promote the responsible use of water resources and waste water services.

Providing health and safety water.

Part 2

In this assignment we need to choose ten different sector companies to analyse three years capital growth, dividend, pie chart and table for historical data of EPS& dividend.

Bellway Plc

Bellway plc (Bellway) is house building, home sold, and sells second hand homes, client will decide the prices, land, planning, sales, construction, environment, health and safe, personnel, information and reporting systems, asset protection, treasury management, legal and regulatory compliance, this is the supplier are looking for safety. Bellway plc's revenue reduce £683.81M.

http://markets.ft.com/cgi-bin/upload.dll/file.png?z0285110azaeec9bb2c89b4d288ae9389a51e9d007

(source: Financial Times)

The chart of bellway shows a rising trend at the same different resistance and support levels. The share price in the last three years breaks downwards thought the upwards trend line it turns upwards to 600p level then for next level 2 will be 700p. As the global politics it can describe the insurance policy and how best to make stronger the risk control.

The Dividend and Earning per Shares shows that is utilizing each asset in three years efficiently to maximize earnings. It shows that the earning per Shares Profit generated has increase by 146.1p in 2007, a similarity pattern with a subsequent fall in 2008 and 2009. Because of the crisis not many people buys the houses. The dividend decrease to 15.1% in 2009.

British Airways Plc

British Airways Plc is the operation international and domestic scheduled air services for the carriage of passengers, flight and mail and the provision of subsidiary services. For the nine months ended 31 December 2009, British Airways plc's revenues decreased 13% to £6.14B. Net loss increased 93% to £245M. Revenues reflect a decrease in income from passengers and cargo.

(Source: Reuters)

http://markets.ft.com/cgi-bin/upload.dll/file.png?z0104210aze5cc29f42005459d942aa625b8be4388

(Source: Financial Times)

The chart of British Airways Plc shows a rising trend at the same different resistance and support levels. The share price in the last three years breaks downwards thought the upwards trend line it turns downwards will be 100p level 1 then for next level 2 upwards to 200p. As the global politics it can describe the pollution.

The Dividend and Earning per Shares shows that is utilizing each asset in three years efficiently to maximize earnings. It shows that the earning per Shares Profit generated has rose from just under 37.2p in 2007 with an increase 62.1p in 2008, but then falls back to about -32.6p in 2009, Because of the crisis, the dividend only 5 in 2009.

3. British American Tobacco Plc

British American Tobacco Plc in the UK is the world's most international tobacco group in the world, is the second largest quoted tobacco group by global market share, with brands sold in more than 180 markets. Supplementary companies produce 684 billion cigarettes through 47 cigarette factories in 40 countries. Four of these and two part plants also make cigars, roll-your-own and pipe tobacco.

(Source: BMI)

http://markets.ft.com/cgi-bin/upload.dll/file.png?z0285110az3d328b17b42449d2b07f5e0d1e4a4fbf

(Source: Financial Times)

The chart of British American Tobacco Plc shows a rising trend at the same different resistance and support levels. The share price in the last three years breaks downwards thought the upwards trend line it turns downwards will be 1,600p level 1 then for next level 2 upwards to 1,800p. The share should be stop loss, as the global politics it can describe the covering risk control.

The Earning per Shares and Dividend shows that shares are utilizing each asset in three years efficiency to maximize earnings. It shows that the earning per share profit generated has increase by 153.8p in 2009 compared as last two year which shows that market price of the share is utilizing increasing the profitability. The dividend increased to 15.8% in 2009 compared in last two years.

4. BT Group Plc

BT Group Plc is one of the leading providers of communication answer serving customers in Europe, the Americas and Asia Pacific. Principal activities include networked IT services, local, national and international telecommunications services, and higher-value broadband and internet products and services. BT is made up of four major lines of business: BT Global Services, Open reach, BT Retail and BT Wholesale. British Telecommunications plc (BT) is a wholly-owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group.

(Source: BT Group Annual Report 2009)

http://markets.ft.com/cgi-bin/upload.dll/file.png?z0285110aze0fec1a599cf40ce8624178d288c6d59

(Source: Financial Times)

The chart of BT Group Plc shows a rising trend at the same different resistance and support levels. The share price in the last three years breaks upwards thought the downwards trend line it turns downwards will be 50p level 1 then for next level 2 upward to 1350p.as the global political the share price collapsed with the rest of the market sector devoted to telecommunications.

The Dividend and Earning per Shares shows that is utilizing each asset in three years efficiently to maximize earnings. It shows that the earning per Shares Profit generated has rose from just under 15.1p in 2007 with an increase 15.8p in 2008, but then fell back to about 6.5p in 2009. The dividend decrease to 1.2% in 2007 with an increase in 23.9p in 2008, but then fell back to about 20.7p in 2009.

5. Filtrona Plc

Filtrona plc manufactures and supplies specialty plastic and fibre products. The Company operates in four separations: protection and finishing product, coated and security product, porous technology and filter product. Such a hydraulics, pneumatics, oil and gas, electrical controls, point of purchase and tubular metal products.

http://markets.ft.com/cgi-bin/upload.dll/file.png?z0285110azdbd0ff45da5648a79314bb8342c9f316

(source: Financial Times)

The chart of Filtrona Plc shows a rising trend at the same different resistance and support levels. The share price in the last three years breaks downwards thought the upwards trend line it turns downwards will be 100p level 1 then for next level 2 upwards to 150p. As the global politics the buyers consider the share price to be good value.

The Dividend and Earning per Shares shows that is utilizing each asset in three years efficiently to maximize earnings. It shows that the earning per Shares Profit generated has increase by 17.2p in 2007, a similarity pattern with a subsequent fall in 2008 and 2009. The dividend increased to 0.02% in 2009 compared in last two years.

6. HSBC Plc

HSBC plc is one of the largest banking and financial services organisations in the world, offering a comprehensive range of financial services including personal, commercial, investment, private banking, cash management, treasury and capital markets, insurance, consumer and business finance, pension and investment fund management, trustee services and securities.

(Source: BMI)

http://markets.ft.com/cgi-bin/upload.dll/file.png?z0185110az6e275d37a3434fe4b2195d7ad5eaabee

(Source: Financial Times)

The chart of HSBC Plc shows a rising trend at the same different resistance and support levels. The share price in the last three years breaks upwards thought the downwards trend line it turns upwards to 790p level 6 then for next level 2downwards will be 300p,then upwards again to710p. As the global politics it can happen the share price makes a new high.

The Dividend and Earning per Shares shows that is utilizing each asset in three years efficiently to maximize earnings. It shows that the earning per Shares Profit generated has increase by 143.79p in 2007, a similarity pattern with a subsequent fall in 2008 and 2009. The dividend decrease to 30% in 2009.

7. Pearson Plc

Pearson Plc is a world leading education company and to help people get more knowledge and know more information in the world, to help our brain based global economic wherever and whenever learning for old and young people at school or at home.

(source: Pearson Plc annual Report 2009)

http://markets.ft.com/cgi-bin/upload.dll/file.png?z0285110azc41f0b3e643149fc9f04cd2c378bab2e

(source: Financial Times)

The chart of Pearson Plc shows a rising trend at the same different resistance and support levels. The share price in the last three years breaks downwards thought the upwards trend line it turns downwards will be 500p level 1 then for next level2 slow upwards to 650p,then upwards again to710p. As the global politics it can describe the pollution.

The Dividend and Earning per Shares shows that is utilizing each asset in three years efficiently to maximize earnings. It shows that the earning per Shares Profit generated has increase by 65.4p in 2009 compared as last year which shows that market price of the share is utilizing increasing the profitability. The dividend increased every year.

8. RSA Insurance Group Plc

RSA Insurance Group Plc, formerly Royal & Sun Alliance Insurance Group Plc is the holding Companies of the RSA group of company whose principal activity is the transaction, both in the UK and overseas, of all insurance business and the provision of related financial services.

( source: Reuters)

http://markets.ft.com/cgi-bin/upload.dll/file.png?z0204210az6687b3706e7e4122acfdf6f6516a6235

(source: Financial Times)

The chart of RSA Insurance Plc shows a rising trend at the same different resistance and support levels. The share price in the last three years breaks upwards thought the downwards trend line it turns upwards will be 160p level 6 then for next level 2 slow downwards to 125p. As the global politics it can describe the risk of making a loss.

The Dividend and Earning per Shares shows that is utilizing each asset in three years efficiently to maximize earnings. It shows that the earning per Shares Profit generated has increase by 19.3p in 2007, a similarity pattern with a subsequent fall in 2008 and 2009. The dividend increased to 0.54% in 2009 compared in last two years.

9. Severn Trent Plc

Severn Trent Plc is the supply water and the treatment and disposal of sewage. The Company is organized into two parts: Severn Trent Water and Severn Trent Services. Severn Trent Plc has increase in 5.8% revenue £1,642.2 million.

http://markets.ft.com/cgi-bin/upload.dll/file.png?z0285110az7035b19455e54f2bbdc67f23e9b5cc4a

(Source: Financial times)

The chart of Severn Trent Plc shows a rising trend at the same different resistance and support levels. The share price in the last three years breaks upwards thought the downwards trend line it turns upwards will be 1,300p level 5 then for next level 3 slow downwards to 1,100p. As the global politics it can describe the water improvement.

The Dividend and Earning per Shares shows that is utilizing each asset in three years efficiently to maximize earnings. It shows that the earning per Shares Profit generated has rose from just under 82.4 p share price in 2007 with an increase 97.8p in 2008, but fell back by 92.7p in 2009. The dividend increased to 1.71% in 2009 compared in last two years.

10. Tate& Lyle Plc

Tate & Lyle (UK) is one of the world's leading producers of white and raw sugar. The company also produces a number of sweeteners used in food, drink and pharmaceuticals. Tate & Lyle is a global company with more than 40 manufacturing plants in 24 countries. Tate &Lyle PLC's revenues increased 7% to £1.82B. Net income from continuing operations decreased 45% to £46M. Revenues reflect an increase in sales from Food & Industrial Ingredients Americas, Sugar and Sacralise divisions. Net income was offset by decrease in interest income, lower expected return on plan assets and a decrease in operating & gross margins.

Source: Reuters

http://markets.ft.com/cgi-bin/upload.dll/file.png?z0104210az7967c979ddc74862bfa76730c38a411e

(Source: Financial times)

The chart of Tate& Lyle Plc shows a rising trend at the same different resistance and support levels. The share price in the last three years breaks upwards thought the downwards trend line it turns upwards will be 400p level 3 then for next level 1 slow downwards to 100p,and then level 3 slowed upwards to 450p. As the global politics it can describe when any announcement is made such as a cancellation of military hardware (ships and aircraft).

The Earning per shares and Dividend shows that shares is utilizing each asset in three years efficiently to maximize earnings .It show that the earning per share profit generated has increased by 38.2 p in 2009 compared as last two year which shows that market price of the share is utilizing increasing the profitability. The Dividend increased to 0.3% in 2009 compared in last two years.

Part 3

The graph of the eight different industry companies for FTSE 100 index over three years on 6 May 2007 stood at 6,000. The investing then would show a gain on 6 September 2009 of only 4,000 relative values. And that is without taking inflation into account. The investing in 2008 or 2009 would be showing a massive capital loss

Conclusion

The ten different companies are good performance. The strategy of companies is delivering a focused high performance, for ten different industry businesses with good positions in different markets around the globe. The companies are able to continue with this strategy and produce more above standard growth. Next year we expect to see continuing growth in company's capital and dividend. We hope in their long term future the ten different companies. The requirements for ten different industry companies inevitably had a significant impact on demand but major orders were also received for future years. We seem the 2010 financial year and confidential that it will be a further year of strong performance of the ten different companies in this sector. Companies have to adopt and change along with circumstances, whether they are imposed politically, economically, by the market or by politicians.