Table of Contents

1.0 Introduction 4
2.0 Methodology 4
3.0 Non-Financial Information 4
3.1 SWOT Analysis 5
3.2 Porter’s 5 forces model 5 3.2.1 Fig 1 Porter's five forces Model 6
3.3 Corporate Social Responsibility 7
4.0 Financial Information 7
4.1 Directors’ Report 9
4.2 Auditors’ Report 9
4.2.1 Understanding Unqualified and Qualified Phrases 10
4.3 Financial Notes 10
5.0 Balance Sheet 11
5.1 Assets 11
5.1.1 Cash and Cash Equivalent 11
5.1.2 Temporary Investments 12
5.1.3 Accounts Receivable 12
5.1.4 Inventory 12
5.1.5 Prepaid Expenses 13
5.1.6 Total Current Assets 13 5.1.7 Property, Plant and Equipment (PPE) 13
5.2 Liabilities 14
5.3 Stockholders’ Equity 14
6.0 Working Capital 14
6.1 Current Ratios 15
6.2 Financial Leverage 15
7.0 Income Statement 15
7.1 Profit Margins 16

8.0 Cash Flow Statement 17
8.1 Financial Ratio Analysis 18
8.1.1 Return on Capital Employed ROCE 18
8.1.2 Calculating ROCE 18
8.1.3 Return on Assets ROA & Return on Investments ROI 19
8.1.4 Calculating Return on Fixed Assets ROFA 19
9.0 Summary 20
References 24

1.0 Introduction.
Abacus Accounts are seeking to outsource most of their Facilities Management operations to an external FM provider; these will include: maintenance, cleaning, catering, security and vehicle management. They are a large business which is seeking to identify a strategic partnership and will therefore, only be willing to deal with significant organisations. The business is also aware that Facilities Management is currently one of the few growth areas in the current economy and, as a long term aim; they may well seek to buy into the equity of an FM Company. This report will identify and outline a methodology and the sources of information required to ensure that Abacus Accounts are in a position to conduct a strategic overview and analysis of