University College of Estate Management 2022   Learning outcomes

Code	Description
LO1	Critically evaluate accounting systems that aid decision-making.
LO2	Critically appraise the financial strength of a business using recognised and innovative techniques.
LO4	Critically interpret and communicate statistical information and financial results to support decision-making.

Scenario

Assume that you are a senior investment analyst working for Athina Ltd, an investment group located in London, UK. The investment committee of Athina Ltd trusts you with their investments and you have regular meetings with them to discuss the direction that the portfolio should take. The sustainable stance, as broadly defined, is very important to all members of the investment group.

Athina Ltd is considering investing in Redrow plc, one of the UK’s most profitable construction companies, and you are required to prepare a report to explain your recommendation. Your analysis must consider the financial and non-financial data of 2021 (download the Redrow plc (2021) annual report using the link below). Data produced after this date must not be used.

Task

Write a report for the Athina Ltd investment committee to recommend whether to invest in Redrow plc or not.

Your report should:

1. Provide a horizontal financial ratio analysis of the Group accounts of Redrow plc (2021) from their 2021 Annual Report (pages 180–183), comparing the years 2020 and 2021. The financial analysis should cover the following ratios and you should explain the results in succinct and persuasive ways:

• Current Assets ratio;
  • Return on Equity (DuPont approach) ratio;
  • Trade creditor payment period;
  • Earnings per share (assume 345 million total shares);
  • Operational Cash Flow ratio.

• Provide a critical analysis of the sustainability practices of Redrow plc.

• Make a clear recommendation (advice) at the end of your report whether to invest in Redrow plc or not, based on your analysis in parts a) and b).

• Include an appendix showing the calculations with full workings for the ratios in section a).

An executive summary will be required.

© University College of Estate Management 2022   Reference list and bibliography

You should include a reference list with a minimum of five separate relevant and appropriate sources that you have written about and cited within your work.

A bibliography of uncited sources is not required.

Further information to support you with this assignment is available within the study materials for this module on the UCEM VLE. If you have any questions about this assignment, please contact your Module Team using the Assignment forum in the relevant Assessment preparation week on the VLE.

Reference

Redrow plc (2021) Redrow Annual Report 2021 [online], Flintshire: Redrow. Available at: https://financialreports.redrowplc.co.uk/annualreport2021/ [accessed 9 December 2021].

Marking guidance for this activity

This guidance is designed to help you to do as well as possible in your assessment by explaining how the person marking your work will be judging it.

Your work will be assessed in relation to the requirements set out in the assessment criteria marking guide at the end of this document and the grading guidance section below.

It is recommended that you read both of these sections before starting your assessment to learn what will help you to achieve the highest marks. Once you have finished you should review the assessment before submitting it, to check you have done what is required to achieve the highest marks.

When you receive your feedback from your tutor you should clearly be able to see which categories you gained marks in and, where relevant, recommendations about how to improve your performance going forward.

Grading guidance

This grading guidance section explains in more detail what a submission for this assessment

should include in order to achieve a mark at the threshold, good and excellent standards.

Threshold

Your report will include an attempt at all sections. Your report will demonstrate generally sound financial analysis and there will be an attempt to calculate the appropriate ratios and make reasonable judgements about them. The explanation of the technical terms and ratios will be mostly accurate. The sustainability analysis will identify and compare key practices in a mainly descriptive way. There will be a reasonable decision based on the analysis of whether to invest in the company or not, with a brief justification for this. The appendix will include workings for the ratio calculations with some errors and/or omissions. Referencing will be sufficiently complete, accurate and consistent.

Good

You will have met the criteria for Threshold and demonstrated sound financial analysis, correct financial ratio calculations, and sound judgements about them. The sustainability analysis will identify and compare key practices to acceptable industry sustainability frameworks (Triple Bottom Line or the UN 17 sustainable development goals) in an analytical way. There will be sound, clear decision based on the analysis, with detailed justification. The appendix will include workings for the

© University College of Estate Management 2022

ratio calculations with minimal errors and/or omissions. Reference practice will be competent, complete, accurate and consistent.

Excellent

You will have met the criteria for Good and also included correct calculations, flawless application of methods and a professional document that will exhibit excellent research skills, critical thinking, and insightful evaluation of results and recommendations. Referencing will be comprehensive with complete, accurate and consistent application of the UCEM referencing system with no errors.

Word count and overwriting

Exceeding 10% of the stated word count may limit the marks allocated for communication (see assessment criteria marking guide below).

The following table outlines the inclusions and exclusions in the word count of the most common features of assessed pieces of work. Not all these features may be relevant to your assignment; please refer to the assignment task for confirmation of which features are required.

Included in word count	Excluded from word count
Introduction	Executive summary/abstract
Main body	Title page/front cover
Footnotes/endnotes	Contents List
In text citations	Calculations
Words in tables	Drawings/Images
Conclusion	List of references
Recommendations	Bibliography
Headings and titles, except for those explicitly excluded	Appendices

The total number of words used must be stated on the first page of your assessment.

Avoiding academic misconduct

You will find guidance on correct Citation in Section 6 of the e-Library

citing and referencing in The UCEM Guide to Referencing andon the VLE.

Plagiarising someone else’s work, whether copying from the internet,  study materials, a textbook, a fellow student or elsewhere, is a serious offence. Before you submit your work for assessment, you must check it to ensure that you have fully cited within the text all the sources of information you have used and that all your sources are listed in a reference section at the end of your submission. Quoted text must not be excessive in length.

Be aware that your work will be checked using text-matching software. The ‘Turnitin’ software is as much for your benefit as ours at U                 . You can use it to check that all your citations have a matching reference and review any highlighted text that may not be original and requires a reference.

A high text-matching result could indicate plagiarism. If plagiarism is identified, this could result in a penalty ranging from a loss of marks to exclusion from your programme.

Note: Please use the assignment referencing link to check the originality of your work before submitting it.