Reg Vardy PLC financial analysis Essay Example | Topics and Well Written Essays - 2000 words

Reg Vardy PLC financial analysis - Essay ExampleThe company, which is named after founder Reg Vardy, is angiotensin-converting enzyme of the leading motor retail groups in the United Kingdom. Reg Vardy was initially established as a haulage business at Houghton-le-Spring. Due to the success of the business, it diversify into the sale of vehicles (Yahoo Finance 2005).Under the leadership of the founders successor, Chief Executive Officer Sir Peter Vardy, the firm acquired franchises from a number of the finest motor and car manufacturers in the world. through and through the course of the company history, Reg Vardy was appointed as the sole distributor of Aston Martin for the North of England. This was followed by the companys franchise of Ferrari and Rolls Royce. Reg Vardy was also awarded the main dealer franchise for other marques such(prenominal) as Jaguar/Daimler, Mercedes and BMW among others. (Company History 2005)In 1989, Reg Vardy became listed in the London Stock Exchange. The initial flotation has raise about 5 million and allowed for expansion foreign North East Heathen. With this, the company expanded further as it acquired more dealerships from other volume marques. (Company History 2005)To finance its expansion binge, the company issued rights in 1998 and raised 26 million. The fund was used to acquire Trust Motor Group, the firms largest acquisition to date. In the same period, the company also established Vardy Contract Motoring, which is focused on the contract hiring and leasing operations (Company History 2005). This year, Reg Vardy pushes through with its strategic acquisitions given the upcoming purchase of five dealerships from the Priory Motor Group. This highlights the companys strategy of acquiring performing and high persona business that accounts from payments of goodwill. (Reg Vardy PLC Annual Report 2005)So far, Reg Vardy sells about 200,000 vehicles annually and employs around 6,000 workers. It has also substantially increased its total franchises to 98 dealerships in 2005 from only 63 dealerships in 1998 (Reg Vardy PLC Annual Report 2005). The company continues to distribute new and used cars for Aston Martin, Renault, Alfa Romeo, Audi, BMW, Citroen, Fiat, Mercedes and Jaguar. Its major shareholders include the Vardy family (28%), Deutche Bank (20.6%) and Aegon (3.59%). (Yahoo Finance 2005)Financial HighlightsTable 1 - chemical equilibrium SheetBalance Sheet (in millions)20052004200320022001AssetsCurrent Assets Cash and Equivalents39.224.345.539.712.0 Receivables73.666.661.952.664.0 Inventories243.2247.5174.8123.1128.2 Other Current Assets14.512.015.06.58.5 fare Current Assets370.5350.4297.2221.9212.7Property Plant and Equipment-Net180.9181.7154.8162.0165.6Intangible Other Assets3.53.21.31.31.8Other Assets3.53.21.31.31.9Total Assets555.0535.3453.3385.2380.3Liabilities and Shareholders EquityCurrent Liabilities Accounts Payable186.2184.3146.996.578.8 Short-Term Debt34.138.770.142.335.7 Other Current Liab ilities44.437.028.825.647.3Total Current Liabilities277.2271.3256.8174.5169.3Long-Term Debt47.949.712.753.057.1Provision for Risks/Charges5.41.21.42.84.0Deferred Taxes6.45.95.14.14.8Other Liabilities12.610.86.31.712.4Total