Imperial Tobacco Essay

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FINANCIAL RESOURCE MANAGEMENT

ASSIGNMENT: REPORT ON THE FINANCIAL POSITION AND PERFORMANCE OF IMPERIAL TOBACCO GROUP PLC

                                                MBA PROGRAMME
                                                COHORT – FEB 11
                          Table of Contents

Item: Page No:

Cover Sheet 1

Table of Contents 2

Executive Summary 3

Introduction   4

Analysis and Interpretation 5

Future Prospects 8

Conclusion 9

Appendices 10

Bibliography 11

Executive Summary

1. Aim

The aim of this report is to provide an analysis of the key financial resource management data relating to Imperial Tobacco Groups historical and likely future performance, in order to provide impartial advice to existing and future independent shareholders.

1.1 Approach

Identifying the key ratios for Imperial Tobacco and two leading competitors, an analysis of Imperial Tobaccos financial position was conducted to determine if an investment represented value for money.   Drawing reference to historical data for each of the companies over the last two years, the key factors of financial structure, solvency, profitability, use of assets and investor ratios were analysed to develop a picture of the company’s financial position in light of recent internal and external events.   Additionally the results of a PEST(LE) Analysis on the industry highlighted the importance of socio-cultural and political-legal environments, which are deemed to have the greatest impact on the tobacco industry in the future.

1.2 Findings

As the 4th largest tobacco company in the world, Imperial Tobacco has continued to deliver a healthy dividend return to shareholders over the past 2 years, and it is assessed that although the market is likely to see a downturn; as a result of increased legislation and a global downward trend in smoking; the trend of...