Financial Analysis of Corporate Performance Johnston Press

Financial Analysis of Corporate Performance

Table of Contents:

* Statement of Purpose

* The Company

* The Industry

* Competition

* Ratio Analysis

* Conclusion

Statement of Purpose

The goal of this financial analysis of Johnston Press p.l.c. is to get thoroughly acquainted with annual financial reports and other sources of relevant corporate information in order to be able to draw certain measurable conclusions about the company. For this reason, the analysis does not exclusively involve only the ratio analysis, but attempts to understand the nature of the company’s business, the economic environment it operates in and the business choices it has to make in order to grow and prosper.

Quantitative analysis of company’s finances, therefore, would serve as a definitive measure of success of company policies that that been the result of these business choices. It will factually support (or refute) the managers’ rationale for particular economic strategies.

Additionally, besides the analytical component, this report will serve an educational purpose in offering an opportunity to retroactively take a look at recent financial performance of Johnston Press p.l.c. and see if any particular correlation between economic decisions undertaken and subsequent financial results can be deciphered.

The Industry

The history of the British press can be traced back as far as 300 years. The first printing press was introduced to Britain around 1476 by an English merchant named William Caxton. Berrow’s Worcester Journal, which began publishing in 1690, and is still remaining in continuous circulation, is believed to be the oldest British newspaper. The Daily Courant was the first British daily newspaper when it began circulation in 1702.

Over the years, British press has greatly evolved to fill all major niches of the printed news industry, from 11 major national newspapers (e.g. The Times, The Guardian, Daily Mail, etc.) to hundreds and thousands of...