FINANCIAL ANALYSIS OF ECOTECH PTY Ltd Case Solution & Answer

FINANCIAL ANALYSIS OF ECOTECH PTY Ltd Case Solution

Dividend Policy of Company

            The annual reports of the company are not published since the company is a private company and the official website of the company does not have any information regarding the dividend policy of the company. This indicates that there is no stated dividend policy of the company.

Share Repurchase

            The company has not repurchased shares in the past and there has been no news of the repurchasing of the company’s shares. Moreover, there are no plans of the company to repurchase any of its shares in future. However, this would be more evident in the future once the company goes public and lists on the Australian stock exchange.

Expansions & M&As

            The company has not done any acquisitions or mergers since its inceptions, nor has the company expanded its operations other than its core business area. However, the company has been expanding consistently over the past years. The company has recently expanded to around 80 countries across the world. Although the primary operations of the company are based in Australia and New Zealand however, the company has expanded its operations to 80 major countries which include the Mexico, USA, Japan and India.The company is today operating around 370 real time monitoring sites worldwide each day. The global footprint of the company includes 9 branch offices, 2 manufacturing facilities and a total of 53 distributors across these 80 countries. The company has majorly expanded in the high risk industry sectors of the environmental services industry such as construction, oil and gas and mining.

Recommendations

            If the company has maintained a consistent dividend policy which is not available publicly currently, then it should continue to do so. Moreover, since the operations of the company have expanded in many major countries of the world, therefore, this might be the right time for the company to get listed its shares on the Australian Stock Exchange. Once the company gets listed, then it might need to repurchase shares looking at the value of the company and its shares.

            The company has so far expanded into many major countries around the world however; it should continue its expansion plans and look out for other countries such as Pakistan and China to expand its operations. Currently, the company has been expanding in the related areas of its business however, in future years the company could move into other business areas of its interest such as energy solutions and it is also recommended for the company to acquire other small companies to adopt a growth strategy for the company and strengthen its resource and technological base.

            Finally, the company needs to strengthen its core competencies and adjust its position in the market to become a dominant player in the face of its competitors and make plans to get listed in the near future. Listing the company on ASX would have numerous advantages for the company such as looking out for alternative sources of financing in order to fuel its growth and expansion plans for the future………………

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