Analysis of Annual Reports for Personal Investment

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Topic: Analysis of Annual reports for personal investment
1. Executive Summary

Assignment Background:

In this assignment, I take the role of an investor looking to invest an amount of USD 50,000 in the capital of a public limited company.

To wisely invest, one needs to do a thorough comparative study of the annual reports, stock market performance, news, strategies, vision of the companies, etc to reach a conclusion.

I have taken up two companies in the financial sector – namely, Amlak Finance PJSC and Tamweel PJSC for this study. Currently, I am working in Dubai in the IT sales sector and both these companies are my customers and they are heavily investing in IT security. This is the reason for my special interest in
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Their staff strength has also increased to 400 employees. All these indicate a positive growth of the organization.
With reference to the annual report (reference cited), please find below some screenshots that indicate the balance sheet trends, key ratios, assets and liabilities of Amlak Finance.
These charts are from the annual report published by Amlak finance available from the following link.

Figure 1: Balance Sheet Trends and Key Ratios:1 Figure 2: Income Statement1 Figure 3: Assets1 Figure 4: Equities and Liabilities1 In the year 2007, we see that the there has been a significant growth in Amlak however, at the same time; there has also been an increase in the liabilities as well. From Figure 3, we see an 87.5% increase in the assets of the firm. Interestingly, Figure 4 shows that the liabilities are also as high as the assets (an increase of 87.5%).
“In the year 2008, Amlak aims to achieve a growth of 70%. Amlak’s 2007 revenue was posted at AED 706 million, up 85% against 2006, with the company’s primary line of business – i.e. - property finance contributing 65% of the total revenue. Meanwhile, the EPS saw an increase of 122%. There was also an overall increase of 99% in the company’s overall volume of business.”
In short, the company is showing positive signs of growth – both in terms of the size and number of employees and in terms of the gross turn over.

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