Business Report Jjb

Topics: Financial statements, JJB Sports, Annual report Pages: 9 (2668 words) Published: March 16, 2013
University of Aberdeen

Business review for JJB sports
Vali Aliyev


King’s College



…………… 2 …………… 3 …………… 5 …………… 7 …………… 9

University of Aberdeen - 2012

Page 1

1. EXECUTIVE SUMMARY This reports provides financial analysis of Annual Reports for UK’s sporting goods retailer JJB Sports Plc.. Company’s performance was analysed both in respect of its historical information and also on the industry level, comparing financial information related to JJB Sports with its two main rivals in the market. JJB Sports historically had strong background in retailing market, but several mistakes in the Company’s strategy resulted in fall for the business. Currently, Company is in loss, its stores are being closed, Board is trying to attract additional investment to resolve the problem. In my opinion, Company is in a very risky situation and needs to survive this very hard period, which is not going to be easy, of course if will survive. If there will not be additional investment attracted and new strategy applied to the business, decrease in the company’s performance will continue and will lead to the bunkrupcy soon.

University of Aberdeen - 2012

Page 2

2. BUSINESS REVIEW From the analytical review of Annual Reports as of 31 January, 2000 and 29 January, 2012 of JJB Sports it can be definitely seen that, there are significant differences in the structure and content of Business Review for 2012 and Operating and Financial Reporting section for 2000. Changes in the legal requirements through the time period that has passed put new terms for the companies in their preparation of Annual Reports. By the application of new regulations for Companies Act in 2006, according to the newly added part of Business Review which is described in the Section 417 of the respective act, beginning from the year 2006 companies were required to prepare Business Review in their Annual Reports. During the review of above mentioned Annual Reports I noted the changes, which are related both to the structure and context of the reports. For details please see main points given below:  As it can be seen from the reports, both of them provide comprehensive information for related years. But according to the requirement of the changes in the Companies Act 2006, we can clearly define that, Business Review is mostly focused on the details of the development and performance of the company throughout the year, nevertheless, Operating and Financial Review mostly provides analytical information based on the changes in overall trends in business and factors affecting business. From the report of 2012 we can see that, Business Review section provides broader knowledge on the strategy of business, changes in the Board of Directors, company’s operations and progress through the year, expectations for the future, and information on the ongoing operations which gives to the reader more detailed, and also in its own turn brief and structured information on business. Continuing the review of two reports the other main difference can be pointed related to the addition of sub-section with the information on principal risks and uncertainties in the business of the company. As part of this section now it is available to see information on company’s business plan for further changes in operations, business environment, overall economic indicators and conditions, competitors, suppliers, information on availability of financing sources, risks in financial markets, revenue dependence on certain events and operations, IT systems, property portfolio and other related factors. This kind of information as part of Business Review provides overall vision of business environment for users, which is very important factor in decisionmaking procedure. According to the changes applied to Companies Act in 2006, companies should include financial and...
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