Research and Analysis Project
The Business and Financial Performance
of “The Kingsbury PLC” over a three-year period
Research objectives and overall research approach
1.1 Reason for choosing the topic
Business and Financial performance of a
company is vital in determining its position in the relevant industry. It is
essential that a company manages its finances and business efficiently and
effectively in order to ensure its survival and growth. And also, as I am
currently working as a finance analyst, this topic is more or less relevant to
what I do at work. So I believe that choosing this topic would bring an
effective outcome due to my work experience in this area of knowledge and it
would help me enhance my knowledge with regards to this area.
1.2 Reason for choosing the company
Main reason for choosing The Kingsbury PLC is
because its one of the significant players in the Hoteliering industry in the
Island of Sri Lanka. It which was incorporated in the year 1969 and based in
the Capital city of Colombo. As it is also a listed company in the Colombo
Stock Exchange, easy access to its financial statements and other public
information was another reason to go ahead with this company.
1.3 Analysis of the economy of the particular
1.4 Analysis of the particular industry
According to Sri Lanka’s Tourism Development Authority(SLTDA),
2.2 million visitors for 2016 has been targeted which is a 26% growth compared
to the previous year. The statistics show that Sri Lanka has welcomed 1.7
million visitors as of October 2016, again an increase of 14.6% in comparison
to the previous year.
1.5 About the company and the organization
Kingsbury PLC is engaged in the business of hoteliering which is incorporated
in Sri Lanka and listed in the Colombo Stock Exchange. The Hotel offers
approximately 230 rooms and suites. It has varieties of restaurants and bars
which also offer in room dining services. It offers a range of venues for
functions, along with attentive services and also other outdoor catering
services for weddings and functions.
SOURCE: FINANCIAL TIMES1
analyze the financial performance of Kingsbury PLC over the course of the last
three financial periods using different types of ratios.
analyze the business environment of Kingsbury PLC in order to determine the
strengths and opportunities, and draw attention to the weaknesses and threats which
could influence their business operations.
understand the competitiveness of Kingsbury PLC in the relevant industry using
the Porter’s Five Forces model.
the actual financial performance of Kingsbury PLC sustainable?
the current financial situation signal any risks of liquidity and solvency
which could impact in the ability to improve Kingsbury’s competitive position
in the industry?
are the strengths, weaknesses, opportunities and threats for Kingsbury PLC?
are the outcomes of the Porter’s Five Forces model for Kingsbury and its
After the first meeting with my mentor, I started
to compile all the financial reports, press releases and various other
newspaper articles relating to Kingsbury during the last three financial years
which would benefit me in conducting this research. Then I did the same for the
comparator company which is TAL Lanka Hotels. After that I had to analyze and
collect information about the industry in which the Kingsbury operates in order
to confirm my conclusions about the companies and the industries.