Advices for Investors about Investment decision to William Hill plc Essay

Advices for Investors about Investment decision to William Hill plc 2234 - Essay Example The researcher endeavours to conduct an extensive analysis in order to see if the assessment of this company reveals a new perspective after these challenges. Henceforth what follows is a detailed financial performance evaluation where the researcher will be analysis various financial ratios to begin with. Thereafter, the corporate governance framework within the company will be analysed. This will allow the researcher to comprehend the corporate governance principles followed in a company that is associated with extensive bookmaking. Following that William Hill’s value in the market value will be analysed in order to provide investment advice to the readers. Figure 1 given below reveals that William Hill’s revenue has increased gradually over the last 5 years. The company’s profit before tax has followed a same pattern as that of the company’s revenue during the same time period with an exception in the year 2013 where the profit dipped by nearly  £20 million from the previous year. This goes to show the consistency demonstrated by the company in terms of its financial performance. The management of William hill has done exceedingly well by shielding the company from any impacts of the 2007-08 financial crisis. This is precisely because of the fact that it was the period when majority of companies recorded huge loss. However, William Hill continued to exhibit a strong performance. It is believed that a lot of people resorted to bet their money to bookmakers in order to earn money in a short time during the time period between 2009 and 2013 and this is what helped William Hill to increase its revenue by a drastic margin. According to Key note (2014), the UK expenditure of household on games of chance increased more than 4% per year between 2009 and 2013 and it was recorded a highest growth in 2013 (8.3%). When compared to the firm’s output, the operating