ACFI7015 A case study of Moonpig (using their Consolidated Accounts)

Learning Outcomes assessed

1. Select and justify appropriate established research techniques in accounting and finance to analyse specific organisational and theoretic problems
2. Use a range of learning resources competently and appropriately
3. Demonstrate an ability to work independently and self critically
4. Conduct research in a systematically rigorous yet critically reflective manner
5. Recognise the potential limitations to research investigation and application
6. Evaluate finance theories in their organisational contexts
7. Evaluate the relationship between financial decisions and the operation of an organisation as a whole and its stakeholders

Objectives

The assignment accounts for 60% of the marks for this module.

This assignment asks you to prepare an analysis of Moonpig Group plc (using their consolidated accounts), including a Shareholder Value Analysis

The assignment encourages

• critical reading of peer-reviewed academic articles and other sources;
• develop and demonstrate an understanding of the topic area and the case company 
  apply theoretical understanding to the case study.

The case study

Moonpig Group PLC is an internet-based business selling personalised greeting cards and other gifts. It was listed on the London stock Exchange in February 2021 and is a FTSE 250 company.

Information on the company’s operations is available from the company website: https://www.moonpig.com/

Information on the company’s finances is available from the company website, by following the link to Investor Information 
https://www.moonpigcompany.com/investors/
Share price data, charts and other technical information are available on uk.finance.yahoo.com.

Required:

1. Assess the strategic position of Moonpig within the card and gift industry, using Porter’s Five Forces, including evidence from the 2023 Annual Report.

2. Prepare a management report on the market valuation of Moonpig as at 30th April 2023 (latest annual report). To support your discussion:

• Develop values for the principal value drivers identified by Rappaport (1986) in his Shareholder Value Analysis model using reasonable assumptions and in the light of available information. Please justify your choice. 
  
  
• Develop a Shareholder Value Analysis (SVA) model for Moonpig using Excel and applying the value drivers you have developed.  
                                                                 
• Conduct a sensitivity or scenario analysis to show the effect of changes in key assumptions in the model and discuss these.                     
• Discuss the difficulties in applying SVA in practice.
  
  
• Draw conclusions and make recommendations on the market value of Moonpig in light of the calculations undertaken.          
• Use the Weighted Average Cost of Capital for the company given on page 185 in the 2023 Annual report.

3. Discuss the reporting and measurement of ESG in the Moonpig Annual Report, using the literature you selected in Assignment 

Marks will be given for use of literature, criticality, presentation and referencing