Financials of the Organization

Abstract

The paper discusses the conflicting or unusual principles that have influenced the organization under consideration and the evaluation of the organization’s financial statements within the last 2 financial years.

The presented research also analyzes the strengths and weaknesses of each department of Bellway, on of the UK leading companies specializing in land acquisition, finance, architecture, build management, planning, marketing, design and other customer services. The financials of the company clearly demonstrate it carries out business successfully.

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The Group presented the sale of almost 4,600 homes, which is 5 % higher for the last year (2009). The average price for these homes was about ? 163, 100, which highlights the rise by nearly 6 % due to the shifts in product variety (Bellway, 2010). With regard to these factors, the company has received revenue of about ? 18.3 million meaning that the Group turnover increased by almost 12.5 % (Bellway, 2010). Interestingly, the operating margin (6.7 %) equals to the results of the previous year.

The presenting accounting principles have turned the company into a profitable organization and have improved significantly the financial performance in comparison with the previous one. In particular, the unusual accounting principle lies in returning to a more normal pattern of sales. Increased media coverage and budget re-organization has contributed to the company’s performance.

The Board’s goal to augment the volume annually remains, but the Group takes in consideration the past experience and, therefore, it possesses currently a strong land bank, a book of ? 397 million allowing the business to success under the contemporary market conditions (Bellway, 2010).

The organization is split into different departments holding specific responsibilities and obligations. These units include marketing, accounting, services, maintenance and insurance, financial, and PR department. In order to improve the organizational performance, all divisions were united for the purpose of enhancing the margin scales through stabilizing revenues and monitoring overheads and cost which contributed to 1 % rise in the second half of year 2009.

The pricing raising steadily, the margin is planned to continue growing in the course of the current financial year. As a result, the current revenue of year 2010 has doubled (as compared to ? 9.3 million in 2009) and accounts ? 18.5 million which is due to the rise of unit completions and augmentation of the selling price (Bellway, 2011). Rent sales has also deposited to a financial success of an organization.

Judging from the tangible results that are witnessed by the Board in 2011, year 2009 was not successful enough due to the following reasons. To begin with, the company failed to apply constant changes to the organizational process in terms of new services and products introduction (Godwin and Alderman, 2010).

Second, the pricing policy was not carefully considered by the accounting and marketing department as little attention was paid to the pricing policy established on the UK market. Finally, the departments were less focused on the widening the range of products and services. As a result, Bellway’s margin was not impressive at the end of year 2009 (Bellway, 2011).

In conclusion, further perspectives prove that the introduction of new accounting principles will keep the next financial years going successfully as well. According to Bellway’s (2011) report, the financial indexes has raised by 27 %, which is an excellent result. However, the company should be always on guard of changes because the UK market creates a number of challenges to the company to sustain a competitive advantage.

References

Bellway (2010). Annual Reports and Accounts. Retrieved from http://www.bellwaycorporate.com/pdf/2010_Annual_Report.pdf

Bellway (2011). Half Year Report 2011. Retrieved from http://www.bellwaycorporate.com/pdf/Half_Year_Report2011.pdf

Godwin, N. H., and Alderman, C. W. (2010). Financial ACCT 2010. US: Cengage.

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