The investment ratios indicated that the company is in a growing position (‘Analyzing Your Financial Ratios’, n. d). This is indicated by the earning per share ratio, that experience a slight increase over the period, and the price earning ratio, that displayed larger enhancement. The notable increase in the price-earning ratio is a sign that the market has high expectancies toward the company. This increase in expectations is caused by WIN’s aggressive expansion toward new mobile services technology, new corporate programs and new markets.
Concerning the performance of other companies in telecommunication industry in UK, it is found that Earning per Share (EPS) for WIN’s competitors is as following: Earning per Share (EPS) = (Net earnings/ Outstanding shares) WIN plc has much larger EPS than British Telecom in which BT’s EPS is 4. 4p in 2006 and 3. 5p in 2005. Meanwhile, Vanco plc also has lower EPS than WIN plc, Vanco’s EPS is 13. 30p in 2006 and 10. 99p in 2005. Assessment on the group’s prospects can be divided into the following aspects: • Arrivals of new opportunities in the market The mobile industry experienced a notable improvement during 2005.
The convergence of mobile and internet is affording new mobile content opportunities like MP3 music tracks, video downloads, instant messaging and mobile television. In response to such opportunity, the group launched a new content management platform that will allow them to deliver increasingly enhanced solutions to customers. These opportunities are a significant part of corporate prospects. • Expanding abroad The group’s recent acquisition of a Greece subsidiary has increased the expectation of public regarding the future of the company. • Subsidiaries The group will also make notable profit from the subsidiaries recently purchased.
Today, the group has a 13% interest in TextAnywhere, which provides self-provisioning desktop to SMS communication services marketed through the web. Reports indicated that the business has grown significantly since the acquisition. Management believed that the increase will continue in the future. • Data industry The data industry is a particular segment of WIN’s prospect. The group has displayed their ability in taking advantage of the opportunity in the data industry. With the growth of information technology, there is increasing demand from companies communicating with customers through the mobile phone.
Conclusions The financial report of the group indicated considerable growth. Financial ratios indicated that the group currently has a strong financial structure and they are striving toward developing their business further. The market has apparently been supportive by providing new opportunities from the unification between the mobile technology and the internet. Efforts of expansion to new segments and new overseas market increased the prospect of the group, indicated by the increasing market expectations toward corporate performance in the future.
‘Analyzing Your Financial Ratios’, n. d. [Online] Retrieved September 22, 2006 Available at: http://www. va-interactive. com/inbusiness/editorial/finance/ibt/ratio_analysis. html Hansen, Don R. Mowen, Maryanne M. 2003, Management Accounting, Ohio, SouthWestern Publishing ‘Ratios for Financial Statements Analysis’, 2004, [Online] Retrieved September 23, 2006, 2006, Available at: http://cpaclass. com/fsa/ratio-01a. htm ‘The Analysis of Financial Statements’, 2006, [Online] Retrieved September 21, 2006 from www. ey. com