-Next PLC is a UK based multi-channel retailer offering clothing, footwear, accessories and home products.
-You are an actuary to a pension scheme considering a signiﬁcant equity investment in Next plc and have been asked to write a report to the Trustees of the scheme regarding the health of the business. The Trustees have been studying the ﬁnancial statements of the group and have asked you to analyse the ﬁnances over time specifically commenting on the profitability, liquidity and efficiency of the business. They also require comment on how Next plc currently stands relative to other companies in the sector.
-Your report to the Trustees should make reference to the suitability of the investment for a pension scheme. You should use ratio analysis to support any trends or comparisons you claim in your report.
-The Trustees have separately received confidential information suggesting Next plc is rumoured to purchase Sports Direct plc, also a FTSE 100 company. They have asked for your advice on how this company should be valued and have again asked you to analyse the finances over time specifically commenting on the profitability, liquidity and efficiency of the business.
Write a report of approximately 3000 words.
(Please also have a look at the financial statements of Next plc and Sports Direct plc)
No maximum references required.