Course financial planning and control - Essay Example

As per Robert Bootle, Economic advisor, Mondaq, 'coming years will present plenty of opportunities for London's financial hub and it will be positioned as number one in the world. The ongoing globalization process will open new international markets. London has a strong track record for developing and trading new products. It is positioned European centre for new financial services. But there is an emerging threat from new Asian Global Financial centres. However once China and India, the two major new players, gets richer, they will turn to UK, thus helping the growth of the UK's financial services sector.

In UK consumer spending regained momentum and along with other sectors gives sign of recovery of UK economy over past few years. At the start of 1990s the financial services sector accounted for 5% of the GDP, whereas now it stands at 9%. It's total assets at the year ending of 2005 stands to 5,988,300, compared to it's competitors GE Capital UK Funding (8,058,303), Provident Financial PLC (1,979,300) CW Lending Ltd. (2,616,735) and Cattles PLC (1,925,918). It has 115,920,724 nos. of shares at a market cap 738,415,012.

It's net tangible assets stands at 5,917,600 compared to GE Capital UK Fundings 4,702,618, CW Lending Ltd.'s ,2,498,929, Provident Financial PLC's 1,348,600 and Cattles PLC's 1,469,941. . igher than most of the other competitors like Provident Financial PLC (5%), Cattles PLC (3%)employed @7%, which is slightly lower to GE capital UK Funding (8%) and CW lending Ltd (9%), but higher than most of the other competitors like Provident Financial PLC (5%), Cattles PLC (3%)The company is in the business of:1.

Car Finance2. Home improvement finance3. Mortgages4. Personal Finance and5. Retail Finance.As per the statement of Jonathan P. L. Perry, Chairman, published in company's Annual Report; the group has performed strongly in the year 2005, produced growth in profit and loan assets. The Groups strategy of multi-brand products yielded good result. Paragon Mortgage Trust brand is well developed. The housing loan market is strong and expanding. The company has reduced its portfolio risks by reducing consumer loan from 36% in 2002 to 13.

4% in 2005.Unsecured personal loan also is reduced from 319.9 million at 30th Sept 2002 to 180 million at 30 September 2005, which is 2.8% of the total loan book. With the surplus funds company has repurchased 1,790,000 shares and has a 20 million repurchase program. The risks perceived are: global economic shut down and prolonged slowdown in household borrowing growth.Now analyzing the financial statements for last 5 years:We find that the Return on shareholder's Funds are reducing over the years except in the year 2004 when there was a slight recovery.

(1999 - 29.78, 2000 - 25.78, 2001 - 24.32, 2002 - 22.91, 2003 - 23.04, 2004 - 26.45, 2005 - 24.94). Whereas the Return on shareholders fund shown by Provident Financial PLC is much higher at in the range of 57.19 to 60.08 during last 4 years. Net tangible assets are increasing over the years making it to the highest at 5,917,600 in the year 2005. The liquidity ratio is