Financial Analysis of Ted Baker
REPORT
To Mr. D.G. Farmer
From an analyst working for Devon Fund Managers (DFM)
Date 15 / 03 / 2013
Devon Fund Managers A regular report that analyses industry and performance of
Ted Baker plc. based on the
Ted Baker Annual Report 2011-12.
Executive Summary
This report is going to analyse and evaluate the Ted Baker plc. by providing the most important ratios of the company and interpretations to them. Furthermore, it is going to recommend to hold shares of this company to existing shareholders and also recommend potential investors to purchase the shares of Ted Baker plc. since the return of the company is expected to be high in the nearest future.
1. Introduction
This report is going to analyse the apparel-textile industry and company performance of Ted Baker plc. by using financial analysis. It will also provide useful recommendations for users about investing in the company.
1.1 Industrial characteristics
Ted Baker plc. operates in apparel-textile industry. This kind of industry is famous for designing and selling accessorizes and clothing[1]. Apparel industry consists of wholesalers and retailers. Since retail stores can sell their own merchandise in retail, they are more profitable but also highly risky[2]. Moreover, sales revenue in this industry, especially in retails, tends to be highly seasonal. Sales are usually being maximised during holidays and at the beginning of school periods[2].
1.2 Industry averages and competitors
Textile-apparel industry has an average market capitalisation of 12B, which shows the average total estimated number of issued shares in companies of this industry[3]. Net profit margin of 6.5% is a measure of profitability as well as, shows pricing strategy and how the companies within Apparel store manage their costs. Additionally, dividend yield in this industry is only 1.1%, which illustrates the rate of return on investment. P/E ratio in this industry is
To Mr. D.G. Farmer
From an analyst working for Devon Fund Managers (DFM)
Date 15 / 03 / 2013
Devon Fund Managers A regular report that analyses industry and performance of
Ted Baker plc. based on the
Ted Baker Annual Report 2011-12.
Executive Summary
This report is going to analyse and evaluate the Ted Baker plc. by providing the most important ratios of the company and interpretations to them. Furthermore, it is going to recommend to hold shares of this company to existing shareholders and also recommend potential investors to purchase the shares of Ted Baker plc. since the return of the company is expected to be high in the nearest future.
1. Introduction
This report is going to analyse the apparel-textile industry and company performance of Ted Baker plc. by using financial analysis. It will also provide useful recommendations for users about investing in the company.
1.1 Industrial characteristics
Ted Baker plc. operates in apparel-textile industry. This kind of industry is famous for designing and selling accessorizes and clothing[1]. Apparel industry consists of wholesalers and retailers. Since retail stores can sell their own merchandise in retail, they are more profitable but also highly risky[2]. Moreover, sales revenue in this industry, especially in retails, tends to be highly seasonal. Sales are usually being maximised during holidays and at the beginning of school periods[2].
1.2 Industry averages and competitors
Textile-apparel industry has an average market capitalisation of 12B, which shows the average total estimated number of issued shares in companies of this industry[3]. Net profit margin of 6.5% is a measure of profitability as well as, shows pricing strategy and how the companies within Apparel store manage their costs. Additionally, dividend yield in this industry is only 1.1%, which illustrates the rate of return on investment. P/E ratio in this industry is
Bibliography: 1. Annual Report 2011/12. (2012). Ted Baker London. Ted 's Passport to Success. 2012 (1), (Hard Copy) 2 3. Yahoo Finance. (2013). INDUSTRY CENTER - TEXTILE - APPAREL CLOTHING. Available: http://biz.yahoo.com/ic/320.html . Last accessed 09th MAR 2013. 4. Ted Baker Official Website. (2013). About us. Available: http://www.tedbaker.com/about_us/content.aspx . Last accessed 14th MAR 2013. 5. London Stock Exchange-LSE:TED. (2013). Ted Baker Plc.. Available: http://www.londonstockexchange.com/exchange/prices-and-markets/stocks/summary/company-summary.html?fourWayKey=GB0001048619GBGBXSTMM . Last accessed 13rd MAR 2013 at 16:47. 6. The Independent-Business news. (2012). Smart Ted Baker beats profit targets. Available: http://www.independent.co.uk/news/business/news/smart-ted-baker-beats-profit-targets-8198352.html . Last accessed 10th MAR 2013. 7. Retail Week News. (2012). Q&A: Ted Baker chief executive Ray Kelvin.Available: http://www.retail-week.com/sectors/fashion/qa-ted-baker-chief-executive-ray-kelvin/5041478.article . Last accessed 10th MAR 2013. 8. BBC News. (2012). Ted Baker 's sales boosted by overseas growth. Available: http://www.bbc.co.uk/news/business-18406260 . Last accessed 9th MAR 2013. 9. Annual Report 2010/11.(2011).Ted Baker London. Ted 's Material World.(1), 1-77.Available at:http://www.palgrave.com/business/collis/ba2/students/TedBakerAnnualReport2010-11.pdf 10 12. Barry E. and Jamie E. (2008). Financial Accounting and Reporting. 12th ed. Essex. England: Pearson Education Limited. 259-748. 13. Richard B. (2008). Financial Ratios: How To Use Financial Ratios To Maximise Value and Success For Your Business. Oxford, UK: CIMA Publishing. 33-131.