Solution
Robert answered on
Dec 27 2021
Running Head: FINANCIAL ANALYSIS 1
Assignment Title
Student Name
Course Name
Instructor Name
Date
FINANCIAL ANALYSIS 2
Executive Summary
Zoopla is an online property development and information solution provider. Zoopla is
located in the UK and they mainly focus on the UK based customers followed by Australian
customers. They have two major business segments property services and comparison services.
Zoopla has gained significant market recognition, and there is considerable improvement in their
financial performance and financial position when compared to the previous year. Zoopla
focuses on meeting the expectation of all the stakeholders of the company.
Shareholders of the company mainly focus on the generating higher return and Zoopla is
performing well and generating a higher return on investment. Suppliers focus on the repaying
ability of the business which is significantly higher for the company. Managers of the company
are empowered to make their decision and in effectively managing the resources, resulting in an
improvement in the business performance and efficiency. Zoopla lenders observation indicates
the higher level of leverage in the company and their chances of being exposed to the solvency
isks is essential to pay attention to the management while raising funds for their investment.
They give back more to their shareholders in the form of dividends.
There is a significant improvement in the cash flow from business operations that
indicates the business ability in generating cash. Overall cash management of the company is at
average. There is a decrease in the cash balance mainly due to the debt repayment made during
2016. Economic factors are a major influencer of the entire industry. Brexit, changes in interest
ate, and changes in the immigration level has a direct impact on the industry. Zoopla is
performing well, and there is a significant improvement in their sales. Still, there is more scope
for improvement. From the various analysis, it creates that Zoopla is a suitable company for
investment both for dividend earnings and for obtaining higher return on investment.
FINANCIAL ANALYSIS 3
Company Overview
Zoopla was founded in the year 2008, and they are in development of the online property
information solution and provide provisions for the same. Zoopla has the following
and under
them (ZPG, n.d.):
 Zoopla – Enables customers to research the property and market data and information
about the properties.
 uSwitch – It is a home comparison and switching service provider that enables consumers
to find best deals and to save more money on all their TV, mobile, financial services, etc.
payments.
 PrimeLocation – Helps the middle and upper-class people in the UK search and find best
properties. Helps to find dream homes.
 money.co.uk – It is a financial service comparison website has over 600 providers over
60 products.
ï‚· hometrack - It is a valuation model providing all insights about the properties in UK and
Australia and has a partnership with more than 400 partners.
 The Property Software – Provides software solution for managing the inventory,
communication, and marketing.
Many
ands are operating under them, and they are operating their business under two
major segments they are property services and comparison services. Property services mainly
deal with the property advertisement services, and it includes the property software solution
provided to the UK real estate agents and the letting agents. The property service segment
provides provision for new home developers to advertise their home on their website and the
company has provision for international property and international commercial property
FINANCIAL ANALYSIS 4
advertisement, has display advertisement and data services. Under the comparison services, the
usiness operation includes energy revenue that is electricity and gas switching services,
communication services that include mobile, TV,
oadband and switching of home phones.
The company provides services includes financial service switching, business energy,
oiler cover and data insight services (ZPG, 2016, p. 90). Comparison services of the company
are generating higher revenue when compared to the property services for the company, but at
the same time, the profit generated from the property services is higher than the comparison
services. There is dramatic improvement in the revenue generating ability of comparison services
from £27,659,000 in 205 to £110,978,000 in 2016 mainly due to the higher level of switching
activity across all the verticals and there was strong traffic for the website that is totaling 600
million visits to the Groups’ website (ZPG, 2016, p. 2).
Analysis of Accounts
Every company has more stakeholders, and it is essential for the business to provide all
information that is essential by every stakeholder. The requirement and area of focus for every
stakeholder are different, and it is essential to pay attention to all their requirements in an
effective manner so that they are satisfied.
Shareholders:
Shareholders of the company are the investors of the company, and they are the owners
of the company. A shareholder of the company invests in a company to generate a higher return
on investment. As per the shareholder's theory, it is essential for an organization to pay more
attention to the profit generation and higher return generating avenues (Saint & Tripathi, n.d.)....