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) Average debtor/trade receivables days (industry average 20 days) Average cash balances ($000) 2010 2009 1,001 950 198 190 19 days 21 days 20 19 BWealth operates in a country where the average rate of inflation is around 3% per annum. Required: (a) Assess the financial performance of BWealth using the information given above. During the early part of 2009, BWealth employed a newly qualified management accountant. He quickly became concerned about the potential performance of the business, and to investigate his concerns, he started to gather data to measure some non- financial measures of success. The data he has gathered is shown below: Internal Business Processes Error rates in jobs done Average job completion time Customer Knowledge Number of customers 2010 15% 2009 9% 7 weeks 9 weeks Average fee levels ($) Market Share 2010 2009 1,210 1,432 549 450 12% 19% Learning and Growth 2010 2009 Percentage of revenue from non-core work 4% 5% Industry average of the proportion of revenue from non-core work in similar practices 30% 25% Employee retention rate. 60% 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.