The current report that has been taken into consideration is looking to address the financial and the operational issues related to Field Solutions Holding Group Ltd. This report has the intention of constructing several financial ratios and even assesses the financial position of the company in order to discover several issues and areas within the company on which suggestions can be provided (Revelli, & Viviani 2015). The report would be based on annual report of the company as well as the financial statements that have been disclosed by the organization in order to have a clear and precise idea about the organizational structure as well as the corporate governance of the company with the help of which a clear understanding of operational activities of Field Solutions Holding Group can be attained. The dividend policies as well as the financial efficiencies of the company would be taken into consideration in order to have an effective understanding of the about the effectiveness of undertaking an investment over the organization would be known in a proper manner.
The investment options will be understood by assessing the share prices and accordingly construct graphical figures in order to undertake a proper comparison among the index of the ordinary shares that are available in the market in order to create an understanding of the movement of the share prices of Field Solutions Holding Group that have been taking place for the past few years. The report would even focus on the dividend policies and the amount of dividend that would paid by the company with respect to the profit yielded along with the debt framework of Field Solutions Holding Group. The report finally at the end would be looking to provide a recommendation letter with respect to which the investment opportunity on Field Solutions Group can be attained.
The company that has been taken into consideration is Field Solutions Holding Group. The organization was established in the year 2012. Field Solutions Holdings Limited had their formerly name to be Freshtel Holdings Ltd and this is an internet communications firm that is based in Australia. The key operational activities of the firm are inclusive of the sub-contracted “voice over internet protocol” and the firm is looking for ideal and precise opportunities for the business (Field Solutions Group | Cloud Based Business Solutions, 2018). The firm is associated in providing business development and the VoIP products and services related to telephony. The Freshtel Internet phone of the firm permits the consumers to undertake free calls in order to interact with the other users. The phone calls can even be made with the help of internet and there are several plans that are inclusive as well. The plans that are existent for the company are inclusive of Freshtel 14.95, Freshtel 29.95, Freshtel 4.95 and Freshtel 9.95. The organization even provides Firefly SoftPhone and even provides other features that are inclusive conference calling, instant messaging and others. The company is well known for providing cloud services to the companies that are operational in Australia. The organization is looking to cloud development application, cloud computing and development of cloud based software and even constructs and designs customized software solutions and products and accordingly even assists in creating public and private services related to cloud hosting, employs and constructs the private networks (Asx.com.au., 2018). The firm even tries to migrate their products that are existent and software that is related to clouds. The services provided by the company are inclusive of monitoring, managing and thereby enhances the cloud network and even constructs software for providing solutions for any kind of disaster scenario.
The company even provides end-to-end solutions that has the range from providing strategy to the concept, to construct, incorporation and the assistances that functions as a carrier for the purpose of communications with the help of which is able to deliver the end-to-end access towards the cloud solutions by making use of the wireless, NBN, dark fiber, Ethernet, microwave and satellite (Field Solutions Holdings Limited, 2018). The company has its head office at Belrose (New South Wales) in Australia. The company as we are aware of is a licensed Australian Telecommunications Carrier is accredited with the ISO 27001 and ISO 9001.
There have been few mergers and acquisitions that have taken place on the part of the company and in the year 2017 in the month of July, the company completed a deal of acquiring Australian National Pty assets and even acquired BMS Network Solutions Pty Ltd. Currently the company has announced an acquisition of the assets of South Western Wireless Pty Ltd. The company has a customer base and therefore looks to operate in the market in order to earn profits.
The company has a competent ownership framework as it is seen that Andrew Jake Roberts is the CEO and the Executive Director of the company and Graham Anderson is the Company Secretary. The other board members who are even the non-executive directors of the company are Peter Oswald Buttery, Mithila NathRnawake, Dr. Kenneth Martin Carr and Wayne Wilson. The report that has been attained with respect to the percentage of share that is controlled by the company explains the fact 51.09% of the shares which is a total of 185,714,286 shares are controlled by Convergent Technology (Investogain.com.au 2018). There are no information related to the shares that are in the hands of the directors and it can be said that the company is looking forward to become a public orientated organization. The corporate governance structure of the company has been disclosed in their corporate governance report and it is seen that there has been a rise in the extent of the monitoring with regards to the activities that are performed by the company. The governance report has explained that the company has been taking strategies in order to manage the extent of risk and accordingly take measures with the help of which the efficiency level of the company be increased. The companies that are listed requires to be acted ethically and responsibly with the help of which the company is able to operate in an effective manner. The company has been looking to take care of the integrity of corporate reporting with the help of which effective level of corporate reporting can be maintained with the help of which the company would be able to enhance their financial as well as their operational activities (Wagner et al., 2015). The effective level of corporate governance has even motivated the firm to construct sustainable development and accordingly take measures and steps with the help of which the company would be able to take care of the society as well as the environment.
There are several people who are associated with the governance structure, however, it is seen that the CEO and the Independent Board of Directors have the most essential role to play in the development and the monitoring of the corporate structure that is asked from the perspectives of the firm.
|
Name |
Position Held |
|
Andrew Jake Roberts |
Executive Chairman and Chief Executive Officer |
|
Dr. Kenneth Martin Carr |
Non-Executive Director (Independent) |
|
Mithila NathRnawake |
Non-Executive Director |
|
Peter Oswald Buttery |
Non-Executive Director (Independent) |
|
Wayne Wilson |
Non-Executive Director |
|
Graham Anderson |
Company Secretary |
Liquid ratios:
The tables that have been constructed above represents the financial ratios of Field Solutions Holding Group and an overall explanation of the ratios that have been prepared can be said that the company has not been functioning effectively in the business environment and has not been able to make profits with the help of the management structure and the policies and the plans that are followed by the company (Karna et al., 2016). The results even explain the fact that the company has several product line with the help of which they are offering new services and products to the economy and thereby are looking to improve their financial position.
The graph that has been given below provides an extensive overview of the share price movement of Field Solutions Holding Group from the year 2015 to the year 2017.
The results have revealed that the movement of the stock price has been limited within 0.04 to 0.1 and it is seen that in the beginning of the year in 2015 the stock price has been 0.04 and this price started gradually started increasing and had a significant level of increase in the beginning of 2016 when the price came up to 0.1. Thereafter, the price started to decline again came to 0.04 in the next month and thereafter remained at this price for around three months. The price again showed an upward movement and increased to 0.1 in the month of May and then faced a sudden drop in the next month again. The price was stable once again and thereafter from the month August in the year 2016, the price started to rise and again went up to 0.1 and this time the month remained stable and did not change. This indicated that the company was doing fairly well in the market till the beginning of 2017 (Ongore et al., 2015). In the month of March in this year, the prices dropped significantly and the market showed that the price had a drop lower than 0.04. This indicated a serious issue for the company and the price was even declining in the coming months. However, at the end of the year, the results have indicated that the price has started to rise and has been able to come back to the sustainable rate of 0.04. The movement therefore indicates that the share price has shown fluctuations but in certain periods has shown stableness as well. This has been indicative of the performance of the company in the market. The company was able to enhance their share price right after which the price fell drastically and had to take measures in order bring the price back to the original position (Saeidi et al., 2015).
The stock returns for the company has been shown with the help of the graph that is shown below and this graph even makes a comparison with the all ordinary index in order to have an idea about the movement of the stock return for Field Solutions Holding Group in accordance to the ordinary index.
The results that have been attained explains the fact that the stock returns have fluctuated immensely as it is seen that the price from 100% has dropped to a negative value of -50% in the year 2016 and then came back to 0%. Thereafter the percentage again jumped up to 100% and declined back to -50%. The returns again jumped to 100% after which it had a fall but this time the fall was to 0%. The return remained on this percentage till March 2017 after which there a fall to -61%. The returns looked to recover but the percentage remained negative. The return showed a prospect of rising and increased to 22% after which the same trend followed and at the end of year 2017, the percentage of return was negative but the value percentage in negative was not big providing the opportunity that the percentage of return can be positive in the next year (Rani et al., 2015). The movements that have been observed in accordance to the all ordinary index indicates the fact that the ordinary index has shown a change that has been negligible and the graph has indicated that the returns have ranged in between 4.12% to -3.13% thereby explaining that the price has been stable around the two year gap.
There are several issues and factors that have had a significant amount of impact on the share prices of Field Solutions Holding Ltd. The company when faced a fall in the share price decided to change their previous name from Freshtel Holdings Ltd to Field Housing Solutions Ltd. The management had the view that the change in the name would have an influence on the investors and they would have the feel that the overall business structure and the operational process of the firm would alter as well and that may enhance the operational activities of the company (Ozkan et al., 2017). After the change of name, the securities of the company remained reinstated in their formal quotation only and the price remained the same after the commencement of the market in the new week after the company officially changed their name. The decision was in accordance to the compliance listing rule 11.1.3 and the Chapter 1 and 2 from the Listing Rules of ASX.
Thereafter, there was another announcement that the securities of the company would be suspended from being quoted as the company made a request that they would be making a declaration with respect to their company policies and marketing strategies. The securities were suspended with the idea that the announcements that would be made can have an impact on the share prices of the company in the economy (Lunardi et al., 2014). Thereafter, the company made the announcement of undertaking the acquisition of the South Western Wireless. The organization even declared a successful incorporation of 56,088,800 worth of shares at a strike price of $0.02 each. They even declared that 15% of the shares were on issue which would raise around $1,121,776. This capital would be used for the purpose of buying the assets of SWW and the customers that would be helpful in strengthening their working capital and even control the assimilation and extraction of the synergies (Waworuntu et al., 2014). The company announced that the securities of Field Solutions Holdings Group would be reinstated to the previous quotation after they had completed their announcement. These issues had significant amount of impact on the minds of the investors and therefore had an impact on the share price of the company.
Calculation of Beta
The beta that is calculated for Field Solutions Housings Ltd has been found to be -.45%.
The table that has been provided earlier indicates the fact that the market risk premium of the firm has been 6% and the risk free rate has been discovered to be 4% and this due to the fact that the required rate of return for the company has been discovered to be -4.70%.
The company has observed with the help of the financial ratios and the movement of the share price and the stock movements have indicated the fact that the company has faced several fluctuations within their operations in the economy and therefore it is advisable to undertake a conservative approach while undertaking an investment on this company (O’Neill et al., 2016). The company within the last two years has been not performing well and the earnings that have been attained for the company is below the industry aggregate. However, conservative investments can be done due to the fact that the company has announced their acquisitions and are looking to increase their working capital in order to expand their business. There are chances that the company would be able to recover from their current scenario and would be able to perform in a better manner (Flammer, 2015). The announcement of the acquisition has a created confusion in the market in accordance to the development that the company may go through and this may lead to a rise in their share prices as well (Busch et al., 2017). The issue of the new shares in the market can even improve the financial scenario of the company and therefore it can be said that conservative investments can be done on this company.
The values that have been determined for the Weighted Average Cost of Capital has been found to be -4.70% and therefore it indicates that the company has to take extensive measures in order to improve their overall business activities.
The results that have been attained for the company in accordance to their debt ratio has explained the fact that the company is not able to earn from their debt and this indicates that the company has to improve their debt strategies in order to stay alive in the economy and perform effectively in order to earn significant amount of profit.
As the financial structure suggests, the company is not performing financially well and therefore, has not been able to provide any kind of dividends to their shareholders. The dividend policies of the company is not at all effective and therefore expectations are there that the announcements that have been made in the year 2018 can have an effective role to play for the company to reinstate their original position and thereby start earning profit with the help of which the company would be able to pay out dividends and accordingly perform in an effective manner within the economy.
To ABS Corp
New South Wales Australia
Respected Sir,
This is to inform you that after extensive analysis of the financial aspect of Field Solution Holding Ltd, it can be said that the company has not been performing properly in the market and has not been able to make profits in the year 2017. There has been a fall in the overall performance of the business with respect to the year 2016 and therefore the company has been making several changes in order to bring about the changes with the help of which they would be able to make profits again. The overall analysis finds out the fact that the company has fluctuating share price and therefore the level of investment within the company has reduced as well. The company has announced several changes within their operational process and has even acquired another firm with the help of which the company has been able to issue new shares at a cheaper price. Therefore, it is recommended to undertake conservative investments within the company as the changes that have been declared would play a significant role for the company to start earning profit and retain their earlier position with the help of which they would be able to payout dividends to the shareholders from the next year onwards. There are chances of facing a loss but the percentage is very negligible.
I hope the information given to you on our behalf would be useful and hope that we can be in your assistance in any future course of time.
Thank You
Conclusion
The results that have been obtained is indicative of the fact that even though the company has not performing in an effective manner in the current time period, there are scope for the company to improve their financial as well as their operational activities with the help of which the company would be able to attain profit and would be able to payout dividends as well. The results have even indicated the fact that the company would be able to reach a better position in the market in the future with the help of the changes and the declarations that they have made.
References
(2018). Asx.com.au. Retrieved 24 May 2018, from https://www.asx.com.au/asx/share-price-research/company/FSG
Busch, T., Bassen, A., Lewandowski, S., & Sump, F. (2017). Corporate Carbon and Financial Performance: An Empirical Analysis. In Academy of Management Proceedings (Vol. 2017, No. 1, p. 11756). Briarcliff Manor, NY 10510: Academy of Management.
Field Solutions Group | Cloud Based Business Solutions. (2018). Fieldsolutions-group.com. Retrieved 24 May 2018, from https://www.fieldsolutions-group.com/
FIELD SOLUTIONS HOLDINGS LIMITED FSG – Profile and Status at InvestoGain Australia. (2018). Investogain.com.au. Retrieved 24 May 2018, from https://www.investogain.com.au/company/field-solutions-holdings-limited
Field Solutions Holdings Limited. (2018). InvestSMART. Retrieved 24 May 2018, from https://www.investsmart.com.au/shares/asx-fsg/field-solutions-holdings-limited/dividends
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