subject: Observations on the Chief Executive's Review including his judgements [print this page] Observations on the Chief Executive's Review including his judgements
The CEO states in his review that: " ... North American and European mergers and the consequent consolidation of platform and engine families does reduce the overall number of potential customers." However, on page 41 of the Annual Report in the section 'Turnover by destination' the North American and European markets account for approximately 95% of the turnover, in fact slightly higher than in 1999. Additionally, there would not appear to be any mention by either the Chairman or the CEO of the slowdown of the USA economy; when one compounds these factors a confused and incomplete message results and it would be of concern to a potential investor.
The CEO also describes the ability of Ricardo to shorten time scales for customers, but almost no evidence of this appears in the reporto
He also states that in the future Ricardo is likely to take on more large-scale projects, and that they may have dedicated offices adjacent to customer sites. He also predicts the company will be running customer facilities where these are of a research or development nature. It cannot be argued that these judgements are mis or under-representative but this sort of strategy is in line generally with industry across the world. Projects and companies are becominglarger through acquisitions, alliances and amalgamations. This may be acceptable to an investor, but again, they are judgements based on current trends and this could change at any time. There is no supporting evidence within the report for crear una tienda online.
He describes Ricardo Consulting Engineers as having continued to extend its customer base and develop its resources to belter match the forward workload. This would appear to be a judgement as it has no data to support this in the rest of the Annual Report. It cannot be viewed as misrepresentation or under-representation, but should have been quantified. The Chairman states that he reported on this move in the previous (1999) Annual Report, so for those investors looking to spot trends, there would need to be sorne evidence to support the statement.
The statement concludes by describing Ricardo's expectation to: " ... maintain profitable growth for the for the foreseeable future." This is a not unreasonable judgement when compared to the past statistics shown on page 2 in the 'Financial highlights' which show a steady growth in turnover for the past three to four years and a bigger increase in 2000. Also, the operating profit has grown by 128M in 1998, 124M in 1999 and 124M in 2000, measured over each previous year.
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