Financial analysis and risk management of Kingfisher Plc Essay

Financial analysis and risk management of Kingfisher Plc - Essay Example The major retail brands of Kingfisher Plc are B&Q, Castorama, Brico Depot and Screwfix. The company is also operating in Turkey in 50% joint venture with Koc Group. The market capitalisation value of Kingfisher Plc is  £ 9100.92 million. The sales turnover of the company as on February 2014 was around  £ 11.1 billion and the pre-tax adjusted profit was  £ 744 million. Asia is its key sourcing market, along with Eastern Europe, Turkey, South America and Middle East. The main competitors of the company are Wolseley Plc, Homebase limited and Leroy Merlin (London Stock Exchange, 2014). The financing of the company includes a number of debt funding instruments such as, bank borrowings, leases, medium term notes and US private placement debt (Kingfisher, 2014b). Keeping in view the international nature of Kingfisher’s business and growing globalisation across the world, certain strategic factors need to be considered by the company regarding its geographical location, financing and its degree of completion. From competitive position, the company presently belong to one of the top-performing companies in retail sector and major strategic advantage of the company is its tendency to acquire small businesses. The company has undertaken joint venture to enter the Turkish market, which is considerably an important strategy. Hence, the company’s entry strategy differs from market to market. The SWOT analysis of Kingfisher Plc shows that the major strengths of the company are dominant market position, healthy business ratios and innovative products and services. The weaknesses include less investment in research and development and excessive dependence on France and UK market. The opportunities of the company are growth in e-retail an d global home improvement industry while the company can face threats like slow economic growth of European market, rising cost of manpower and high competition. The financial trend analysis has been done on last