Hi, need to submit a 2000 words paper on the topic London Stock Exchange: BAE Systems. The Turnover of the company has increased from £18,543m in 2008 to £22,415m in 2009, an increase of 21% over the earlier period. Correspondingly, the underlying Earnings Before Interest, Taxes, and Amortization (EBITA) have also increased from £1897m in 2008 to £2220m in 2009, showing increases of 17% growth rate in these two years. Again, the progress of the company could be judged by the fact that there has been a 10% hike in dividends to shareholders from 14.5 p during 2008 to 16p during 2009. During this period the Basic Earnings per Share (EPS) has increased from 37.1p in 2008 to 40.7p in 2009, an increase of around 10%. Cash inflows have also registered good increases from £2009m during 2008 to £2232m in 2009, an increase of around11%.
However, a disconcerting occurrence in this company has been that the US Department of Justice and the UK Serious Fraud Office has filed cases of the conspiracy by making false statements to the US Government in a matter of regulatory filings and documents. Again, regarding the case, the Company will plead guilty to one charge for breach of duty to keep accounting records in relation to payments made to a former marketing adviser in Tanzania. The Company has agreed to pay penalties and fines in both these cases. “The Board uses a range of financial and non-financial performance indicators, reported on a periodic basis, to monitor the Group’s performance over time”. (Our strategy: Our key performance indicators, 2010).
The ongoing legal proceedings by the US Department of Justice (DoJ) and the UK Serious Fraud Office have had an adverse impact on the share prices of BAE systems. The last quotation of share price has been 360.60 Gbps with a reduced rate of -16.80 Gbps. (Share monitor, 2010).
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Other considerations that impact the share price of the company would be the economic scenario in which this major company operates with its .competitors and rival businesses, the number of defense contracts it is able to gain during the year and its major inroads into global markets like Indian and Kingdom of Saudi Arabia. .