To: Board of Directors, HP
From: Amanda Ellis, HP
Date: 21 July 2021
Title: Financial and commercial review
For internal use
Disclaimer (ignore if internal report): This report has been prepared for the Board and should not be
distributed to any other parties without prior written consent. No liability can be accepted in the event of
such distribution.
Executive Summary (use headings for the 3 requirements)
R1 R2 R3
Revenue: comment on Comment on calculation: i.e. Identify option with largest
movement with fig and explain state headroom / comment on saving with fig
Mix/Volume/one-off time period
CoS: comment on movement Sensitivity comment: Comment on risks / objectives /
with fig and explain “These estimates are based on principles
a number of assumptions such
as xxx any change in the
assumptions might change the
figures and therefore the
decision”
Individual costs: comment on Identify significance of contract / Identify significance of business
movement with fig and explain cashflow and profitability impact issue AND need to solve
problem
GP/GP%: comment on Professional scepticism on Strategic issue: diversity
movement with fig assumptions
Comment on overall Comment on commercial issues Comment on effect of
performance and make i.e. contract terms commercial/ethical issue on
commercial recommendations reputation
Adjustments needed, impact Conclude on way forward Conclude on way forward
on cashflow and profit,
recommendation
Ethics & damage on reputation Conclude on operational /
strategic issues
Proposed terms could create Make recommendation on
difficult precedent ethical issues
Make commercial / ethical Make other commercial
recommendations recommendations
, Section 1 – Financial performance review of xxx
Assimilating and using information
Appendix 1 – Financial Exam info Business issues / wider
Analysis context (PESTEL, Porter’s 5
forces, SWOT)
Present table with currency and Discuss movements Industry growth, demand,
% popularity, Government policies
Analysis of revenue / volume / Customers, suppliers
customer (overseas), competitive market
Analysis of CoS elements and Specific business issues /
their relationship with revenue targets
Analysis of GP / OP Seasonality
Highest / Lowest revenue History of growth / good quality
stream & mix products
Uncertainty of movement in
sterling
Structuring Problems & Solutions
Financial analysis: Financial analysis: Financial analysis: GP Adjustments (if
revenue CoS / OC any)
Targets / Objectives Overall and then depth Targets / Objectives Adjustment needed
Rev per x Overall and then depth Impact on cash/profit
One-off, seasonal, Calculation of
recurring relative size of
adjustment
Applying Judgement
Evaluation of Evaluation of CoS / OC / GP Evaluation of impact of new
revenue analysis analysis adjustments customers / other
events (if any)
Revenue growth rate: Total CoS increased faster / Validity of New customer /
- decline in one offset slower than revenue / poor or adjustments – be event revenue
by growth in other better cost control prudent –
- comparison to prior impairment could
year be more
- industry comparison
- good or bad growth
in competitive market
- driven by volume or
prices
Impact of an identified Cost per revenue stream rising Financial impacts Revenue per new
issue on revenue / falling with volumes or other on profit/cash customer / event
reason
Other line items as a Objective / Target Professional
% of revenue scepticism: bigger
or lower adjustment
Sustainability of Judgemental areas impact Impact on KPI’s /
From: Amanda Ellis, HP
Date: 21 July 2021
Title: Financial and commercial review
For internal use
Disclaimer (ignore if internal report): This report has been prepared for the Board and should not be
distributed to any other parties without prior written consent. No liability can be accepted in the event of
such distribution.
Executive Summary (use headings for the 3 requirements)
R1 R2 R3
Revenue: comment on Comment on calculation: i.e. Identify option with largest
movement with fig and explain state headroom / comment on saving with fig
Mix/Volume/one-off time period
CoS: comment on movement Sensitivity comment: Comment on risks / objectives /
with fig and explain “These estimates are based on principles
a number of assumptions such
as xxx any change in the
assumptions might change the
figures and therefore the
decision”
Individual costs: comment on Identify significance of contract / Identify significance of business
movement with fig and explain cashflow and profitability impact issue AND need to solve
problem
GP/GP%: comment on Professional scepticism on Strategic issue: diversity
movement with fig assumptions
Comment on overall Comment on commercial issues Comment on effect of
performance and make i.e. contract terms commercial/ethical issue on
commercial recommendations reputation
Adjustments needed, impact Conclude on way forward Conclude on way forward
on cashflow and profit,
recommendation
Ethics & damage on reputation Conclude on operational /
strategic issues
Proposed terms could create Make recommendation on
difficult precedent ethical issues
Make commercial / ethical Make other commercial
recommendations recommendations
, Section 1 – Financial performance review of xxx
Assimilating and using information
Appendix 1 – Financial Exam info Business issues / wider
Analysis context (PESTEL, Porter’s 5
forces, SWOT)
Present table with currency and Discuss movements Industry growth, demand,
% popularity, Government policies
Analysis of revenue / volume / Customers, suppliers
customer (overseas), competitive market
Analysis of CoS elements and Specific business issues /
their relationship with revenue targets
Analysis of GP / OP Seasonality
Highest / Lowest revenue History of growth / good quality
stream & mix products
Uncertainty of movement in
sterling
Structuring Problems & Solutions
Financial analysis: Financial analysis: Financial analysis: GP Adjustments (if
revenue CoS / OC any)
Targets / Objectives Overall and then depth Targets / Objectives Adjustment needed
Rev per x Overall and then depth Impact on cash/profit
One-off, seasonal, Calculation of
recurring relative size of
adjustment
Applying Judgement
Evaluation of Evaluation of CoS / OC / GP Evaluation of impact of new
revenue analysis analysis adjustments customers / other
events (if any)
Revenue growth rate: Total CoS increased faster / Validity of New customer /
- decline in one offset slower than revenue / poor or adjustments – be event revenue
by growth in other better cost control prudent –
- comparison to prior impairment could
year be more
- industry comparison
- good or bad growth
in competitive market
- driven by volume or
prices
Impact of an identified Cost per revenue stream rising Financial impacts Revenue per new
issue on revenue / falling with volumes or other on profit/cash customer / event
reason
Other line items as a Objective / Target Professional
% of revenue scepticism: bigger
or lower adjustment
Sustainability of Judgemental areas impact Impact on KPI’s /
