PART ONE
Questions 1 – 8
l Look at the statements below and at the fivereports about companies on the opposite page froman article giving advice to self-employed consultantsabout negotiating fees for their services.
l Which book (A, B, C,D or E) dose eachstatement 1 –8 refer to ?
l For each statement ! – 8, make one letter (A,B, C,D or E) on your Answer Sheet .
l You will need to use some of these letters more than once .
Example :
0 Lack of self-confidence will put you at a disadvantage in a negotiation .
0A B C D E
1. This company has been involved in diversifying its business act6ivities.
2. Although this company is doing well, it has a number of internal difficulties to deal with
3. This company has reduced the profits it makes on individual items
4. One statistic is a less accurate guide to this company’s performance than another
5. The conditions which have helped this company are likely to be less favourable in thefuture
6. This company’s share price has been extremely volatile over the last twelve months
7. This company is likely to be the subject of a takeover bid in the near future
8. This company’s performance exemplifies a widely held belief
A
Chemical Company
Masterson’s interim pre-tax profits growth of 20% was somewhat inflated as a result ofthe income received from the disposal of several of the company’s subsidiaries. Theunderlying 8% rise in operating profits is a more realistic gauge of the company’s trueprogress. However, Masterson’s impending merger with Bentley and Knight and itsappointment of a new chief executive should mean that the company will be able to sustaingrowth for the foreseeable fut5ure. The share price has varied little during the course of theyear and now stands at £ 6.75
B
Hotel Group
During the past year the Bowden Hotel Group has acquired 77 new properties, thusdoubling in size . last week the group reported pre-tax profits of £ 88 million in the first sixmonths of the year, ahead of expectations and helped by a strong performance from itsLondon-based hotels and newly expanded US business. However. There is still some way to go.Integration of the new acquisitions is still not complete and, while the share price has risenrecently, major problems with integration have yet to be solved.
C
High-tech Company
This time last year a share in Usertech was worth just over £ 1. six months ago it wasworth £ 40. today it is priced at under £ 8 . if proof were need, here is an illustration of howmuch of a lottery the technology market can be. But some technology companies are fightingback and Usertech is one of them . What has renewed excitement in the company is theopening of its new American offices in Dallas and its ambitious plans to expand its user basein both North and Latin America.
D
Building Company
Renton’s share price has risen gradually over the past year from £2.4 to £ 3.8 . Thecompany has been successful in choosing prime location for its buildings and has benefitedfrom the buoyant demand for housing. Whilst this demand is expected to slow downsomewhat during the next year, investors are encouraged by the company’s decision to moveinto building supermarkets. Work has already begun on two sites in London, and the companyis expected to sign a contract within the next month for building four large supermarkets inScotland.
E
Pottery Manufacturer
Milton Dishes has been through a shake-up over the past year. The group, which has beencutting margins and improving marketing, may post a small profit this year. The many membersof the Milton family, who between them own 58 per cent of the business, have been watchingthe share price rise steadily and several are looking to sell. Trade rival Ruskin has bought upjust over 17 percent of the shares and could well be spurred into further action by the signs ofa recovery at the firm.
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