You have recently joined Penco, a small pension fund that aims to strategically invest in low risk companies with a historically satisfactory return on investment.

As a junior analyst, your first task is to review the market and select two companies listed on the London stock market and to access their financial statements. You should analyse their financial position, using the information from their financial statements and apply appropriate financial ratios. You should make recommendations to Penco to invest. Calculations and financial ratios supporting the recommendation should be appended to the memo for the board's attention.