Unit 10. Company Performance.

1. KEY VOCABULARY. (SB page 96) Learn:

Companies need to know how they are performing in order to analyze problems, find solutions and make plans for the future. Management accounts provide data about operational efficiency and financial accounts give information about financial performance. These tell the company not only how much it is selling, or how much revenue it is receiving, but also what its costs are ­­­­-- how much it has to pay for the different things in order to operate.

With this information a company can then calculate how much money it has made (profits) or how much it has lost (losses) during a specific period. Listed companies whose shares are sold on the stock exchange, have to present their accounts to the public in an annual report. An annual report is prepared by the management of the company whose stock is traded publicly. It discusses the company’s financial affairs.

2. AN ANNUAL REPORT fragment. (SB page 105, EX.2)

Use the dictionary. Fill in the words. Make a written translation of the letter:

• chief financial officer • revenue • local subsidiary • dividends

• quotas • sustainability • to issue shares • net profit

• wastes • balance sheet

It has been another excellent year for the company as our businesses have continued to grow. As you will see from the (1) balance sheet and the accompanying financial statements, our financial performance has improved significantly.

We are particularly proud of our sales record and of the fact that we are able to report a 6% increase in (2) ____________during the period. Thanks to this and to the success of various cost reduction initiatives, our (3) ___ __________ is substantially higher and consequently our shareholders have benefited from a significant rise in (4) ___________ per share.

Our continuing commitment to the environment, and our policy of ensuring the long term (5) _________ of the resources that we use manufacturing, have contributed to our recent success in the new export markets in Eastern Europe where concern for the environment is growing. Our performance in toxic (6) __________ reduction has been significantly improved and now we are on target to meet EU requirements. In the light of our success in the East European markets, we are planning to continue investing there and are moving forward with plans to set up additional (7) _______ ________________.

However, our performance in some areas has been affected by continuing economic uncertainty and also by the introduction of (8) __________ restricting sales of certain products. On the recommendation of our analysts, we have decided to go ahead with plans (9) ___ _______ _______ on the Stock Exchange. Our (10) _______ ___________ _________will be responsible for implementing this new program in the second half of the year.

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