Question
Seiko Holdings Plc is based in Birmingham, United Kingdom serving UK and Europe. Seiko Holdings Plc is headed by Clara Chou a seasoned Psychologist who
Seiko Holdings Plc is based in Birmingham, United Kingdom serving UK and Europe. Seiko Holdings Plc is headed by Clara Chou a seasoned Psychologist who has a strong love for great living spaces believing this improves mental health and longevity. It operates from a rented Head Office premises in central Birmingham with a Shared Services Centre serving the group. Seiko Holdings Plc has investments and interests in Healthcare Industry (Adult Care) and Hospitality Industry (offering packaged holiday services).
The Health & Social Care business operating under the name Seiko Care Solutions (SCS) rents properties which SCS tailor to cater for the needs of the service users and maintains per Care Quality Commission (CQC) standards and personal care plans. SCS lost two paralysed service user contracts following a complaint for a delayed completion of disabled toilets renovation project. Under Sheila Roberts as Managing Director (a qualified Mental Health Nurse), SCS had enjoyed year-on-year growth, however profitability has (since January 2020) been heavily impacted by various macro factors in the UK affecting such costs as food costs, energy costs and property costs etc.
Seiko Holdings Plc operates in the hospitality sector under the name Seiko Spaces (SS) where it owns and operate a Bed and Breakfast (B&B) chain with strategic business relationships with a prominent UK and Regional Europe passenger aeroplane business based in London. SS owns the B&Bs it runs and plans to expand its chain. SS is run by Parndeep Singh (Managing Director) a travel enthusiast with a knack for spotting profitable destinations and routes. Under Parndeep Singh's eight year leadership, SS has maintained strong year-on-year growth and profitability until 2020 when profitability and growth declined despite the demise of Thomas Cook in September 2019 and due to COVID-19, Brexit and many other macro factors in the UK. On reviewing the unpleasant profitability position, Clara Chou demanded for the position to improve citing Thomas Cook's demise in September 2019 as an opportunity for growth and improved profitability for SS.
Following deliberations, Seiko Holdings Plc Strategic Business Committee recommended that Seiko Group should acquire a good fit for strategic synergistical benefits to Seiko Holdings Plc for improved growth and profitability. The identified two possible acquisition targets and would want you to perform some ratio analysis, evaluate the findings and advise the committee on which one they should acquire and why. The target companies are below:
PureCare Solutions Ltd: A prominent profitable Health and Social Care business offering Supported Living services to past offenders on path roto community rehabilitation and mental health patients. PureCare Solutions Ltd has a strong network of support teams and has maintained an Outstanding Rating from Care Quality Commission for the past 7 years under the leadership of the current Managing Director who has been in charge for the past 10 years.
Kindra Properties Ltd: Led by founder Kindra Peters a seasoned Property Developer and Architecture, Kindra Properties Ltd has delivered various property development projects, renovations and has a successful Buy, Revamp, Rent, Refinance and Repeat (BRRRR) portfolio and strategy. Three of its BRRR properties are leased to Supported Living Services and have state of the art tailored bathrooms and play areas. The other properties are leased to a company operating them as Bed and Breakfast properties.
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