As a financial and management consultant, you have been approached by the board of your choosing company.
There is much debate as to how the company will perform in the future. Some executives are keen on the expansion of the company's operations, brands, and activities to enter new markets which undoubtedly will require new equity and/or debt finance. However, the independent non-executive members of the board are unsure if the company has the appropriate financial strength to expand now and whether it can address the business, economic and social challenges.
In anticipation of further discussions on the matter, at its January meeting, the Board requires an independent financial assessment of the company's historical performance and an evaluation of its likely performance, using appropriate financial analysis techniques, annual reports and any other publicly available data. The Board will need a private and confidential report to be submitted by early January both to allow adequate time for members to peruse the report and to allow its circulation prior to the meeting of the Board of Directors as required by relevant company acts and regulations in the United Kingdom.

The Board expects you to:
a) Briefly assess the company's business dynamics, its strategies and the market prospects along with any associated risks.
b) Carry out a historical ratio analysis (at least 4 years data) of the company’s financials, including any impact of specific accounting practices or policies on the reported performance/position/cash flow. You should normally rely on the latest audited financial statements for the analysis but you can, in addition, include any recent unaudited results if you believe these to be of relevance to your report.
c) As a result of (a) and (b) above, provide a forecast of the company’s financial performance (Income Statement, Balance Sheet and Cash Flow) for the next five financial years, under two scenarios:
i) The Board of Directors ratifies and agrees to implement the expansion plans and holds a press conference on the 30th January 2021 to announce the plans.
ii) The Board of Directors fails to ratify the expansion plans and the firm continues unchanged.
d) Provide a projected, fundamentals-based valuation of your selected company as at the close of trading on the London Stock Exchange on the 1 st of February 2021, under the two scenarios noted above.
e) Obviously, the Board is well aware of the practical difficulties in forecasting financial performance and in accessing all the relevant financial and economic data. As a result, you are expected to outline the underlying assumptions, and limitations in the use of particular numbers and statistics.
Output Required:
Prepare a corporate report clearly setting out the mandatory actions, if any, and suggested recommendations, in less than 2,000 words while addressing the requirements (a) to (e). The word count excludes title page, figures, tables, references, bibliography and appendices. Note that each section, (a) to (e) is equally weighted.