Critical Assessment of Jjb Sports Plc Annual Reports and...

Critical Assessment of JJB Sports plc Annual Reports and Accounts Table of Contents Introduction 3 Overview 3 Business Review 4 Governance 5 Reliance on Annual Reports 6 References 8 Appendices 9 Introduction An annual report is a ‘portrait’ of the business. It embeds a sense of achievement, as well as, future prospects into the minds of the company, as well as, its readers (Sanders, 1949). JJB Sports plc is one of the foremost vendors of sports goods in UK. They have been facing a tough and challenging time over the years which are reflected in their annual report. Emphasis is mostly given on the way through which the company can complete a successful turnaround. The annual report begins with the description of†¦show more content†¦The operating review of the company lists down the operating losses that the company faced over year and compared it with the past years operating performance. The results suggest that the sales revenue for the company grew over the year; however, due to higher increase in the cost of sales the company had to face a higher gross loss than the past year (Refer to appendix A). Moreover, the company discontinued its noncore retailing operations for the year in an attempt to reduce the losses sustained in the past year, but the result was not positive, and the company had to face higher loss from its core business in 2010 then both the operations combined in the past year (JJB Sports PLC, 2011). The KPI’s did not provide a better picture for the company except for showing growth in revenues and gross margin, and all the results were unsatisfactory (Appendix B). The net loss per share also rose to 61.8 pence per share from the last year figure of 20.84 pence per share. The key risks that the company faces are economic conditions, competition, key employees, suppliers, availability of credit, financial risks, business continuity, revenue dependence, cost saving, leased property portfolio, as well as, some other minor risks. The amount of risks faced by the company is high, and the realization of those risks is a good possibility in light of the performance of the company.Show MoreRelatedExploring Corporate Strategy - Case164366 Words   |  658 Pagesthat do not reach fruition are considered, Exhibit 1 Creating new pharmaceuticals. It takes 10–15 years on average for an experimental drug to travel from the lab to patients Source: PhRMA, Medicines in Development – Biotechnology – 2006 Report, p. 51. ECS8C_C02.qxd 22/10/2007 11:53 Page 610 610 THE GLOBAL PHARMACEUTICAL INDUSTRY Exhibit 2 Methods used to control pharmaceutical spending Mixed effect Partial reimbursement at price negotiated with manufacturer Generic