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Introduction FDM Group is a London-based organisation that specialises in the provision of software and computer services to banks and other financial institutions. Two friends – Rod Flavell and Julian and Jaqueline Divett, started the company as an information technology (IT) organisation (RVY 2017). Today, its business model is centred on IT recruitment, where the company deploys its employees to their clients’ offices as consultants. FDM’s market presence is visible in multiple cities around the world, including (but not limited to) Glasgow, Toronto, New York, Hong Kong and Leeds (FDM Group 2017). According to the company’s website, it has worked with more than 180 clients through partnership agreements that have seen the organisation recruit, train, deploy and build the human resource capacities of different firms (BFRS 2017). Within its business model, the organisation provides award-winning training to different groups of employees by imparting them with relevant digital development skills and technical expertise that would enable them to achieve their corporate goals (FDM Group 2017). Many employees of FDK group are university graduates and ex-military personnel who are first trained in-house before they are allowed to work as consultants (BFRS 2017). Ex-professionals who want to come back also form a strong constituent of its employee base. The company’s business model focuses on using these three groups of people to work for the organisation as consultants. The prospective employees are usually trained for a minimum of 12 weeks, after which they sign a contract to work for the organisation (BFRS 2017). Financial institutions and banks are the main clients for FDM. Today, the organisation is listed on the London Stock Exchange and it is estimated to have a market capitalization of £981.63 million (FDM Group 2017). The firm is also listed as a member of the FTSE250 Index. However, it has plans to become a FTSE 100 organisation. This report is a financial analysis of FDM Group. It is divided into two sections that analyse the company’s financial performance through quantitative and qualitative assessments. The first section details an analysis of the company’s financial performance using relevant financial ratios relating to the organisation’s operations in the last five financial years (2012, 2013, 2014, 2015, and 2016). The analysis includes an evaluation of the company’s profitability, investment returns, liquidity, key performance indicators (KPIs), net asset value, share price, and risk. The second section of the paper evaluates the company’s corporate governance standards and reviews how the same process influences its brand and reputation. The second section of the report also reviews the company’s medium-term financial, strategies to help it become a FTSE 100 organisation. Profit Analysis This section of the report will review FDM’s operations with the goal of understanding how it creates value for its shareholders through increased profitability. An assessment of the company’s profitability through an analysis of its return on assets (ROA) and return on equity (ROE) from 2012 to 2016 shows that it has remained profitable within the period under analysis. As evidenced in appendix 1, its ROA for the selected period were 31.80, 24.94, 33.81, 34.17, and 35.82 (Morningstar Inc. 2017). A 5-year average of the same numbers reveals that FDM’s ROA is 30.2 (Morning Star 2017). At the same time, the industry average is 6.7 and the country’s median ROA is 5.6 (Morning Star 2017). These figures show that FDM’s profitability is strong. The same narrative emerges through an assessment of its ROE because, in 2012, 2013, 2014, 2015, and 2016, the company reported figures of 63.37, 42.76, 48.44, 51.57, and 56.29 respectively. A 5-year average of the same number shows that its ROE is 53.2 (Morning Star 2017). The average ROE for the industry is 12.5, while the national ROE is 13.6 (Morning Star 2017). These numbers contribute to the strong profitability narrative that emerges in this section of the paper. The profit numbers mentioned above partly stem from the positive revenue growth the company has reported in the last five years. Figure 1 below shows that the IT-based organisation has boosted its revenues gradually from 2012 to 2016. Figure 1: Revenue Growth (Morning Star 2017). A quick review of the above graph reveals that the company has witnessed an increase in revenue growth from a low of 13.6% in 2014 to 35.4% in 2016. Through the increase in revenue, the company’s profitability has been appealing. Investment Returns Analysis An analysis of FDM’s return on invested capital showed that the company reported 45.23, 35.28, 48.61, 51.43, and 56.26 for the period under assessment (Morningstar Inc. 2017). These figures show that the company has been able to generate enough revenue for its investors because there has been a growth of the return on invested capital from 35.28 to 56.26 within the period. Get your 100% original paper on any topic done in as little as 3 hours Learn More Liquidity Analysis An analysis of FDM’s liquidity draws attention to three liquidity ratios – current, quick, and debt-to-equity. A review of the current ratio shows that between 2012 and 2016, the company reported ratios of 2.03, 2.26, 2.11, 1.97, and 2.00 (see appendix 2). These estimates show that FDM is in a position to use its profits to meet its short-term and long-term financial obligations (Vickerstaff


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