BWealth Ltd provides a fee-based, high quality financial planning and personalised investment service to 'high net worth' retired individuals, as well as to trusts, charities and small businesses. BWealth employees work to enhance the income of the business' long-term investors. The industry BWealth operates in is becoming more and more competitive. The Managing Partner feels that promotion of new investment products to BWealth's clients would be likely to upset their generally conservative nature and, as a result, the business has been managed with similar products for the last couple of years. The last two years of financial results are shown below: Turnover ($000) Net profit ($000) 2010 1,001 198 2009 19 days 20 950 190 Average debtor / trade receivables days 21 days (industry average 20 days) 19 Average cash balances ($000) BWealth operates in a country where the average rate of inflation is around 3% per annum. Required: (a) Assess the financial performance of BWealth using the information given above. During the early part of 2009, BWealth employed a newly qualified management accountant. He quickly became concerned about the potential performance of the business, and to investigate his concerns, he started to gather data to measure some non- financial measures of success. The data he has gathered is shown below: Internal Business Processes Error rates in jobs done Average job completion time Customer Knowledge Number of customers Average fee levels ($) Market Share Learning and Growth Percentage of revenue from non-core work Industry average of the proportion of revenue from non-core work in similar practices Employee retention rate. 2010 15% 7 weeks 2010 1,210 549 12% 2010 4% 30% 60% 2009 9% 9 weeks 2009 1,432 450 19% 2009 5% 25% 80% Notes 1 2 Error rates measure the number of jobs with mistakes made by staff as a proportion of the number of clients serviced. Core work is defined as being investment management. Non-core work is defined primarily as estate planning and retail banking. Non-core work is traditionally high margin work. Required: (b) Assess the performance of the business with comments on all non-financial aspects separately, as well as a concluding comment on the overall performance of the business.