Assignment #3 draft

Hi guys,

The link for my spreadsheet for assignment 3 is below.
I am still working on my word document and will post that when I can.
Good luck to everyone!

Spreadsheet- Assignment 3

Assignment #2 draft.....

Links to my draft of Assignment #2.

Spreadsheet

Assignment #2

Draft- Assignment 1

Hey guys,

The link to my Assignment 1 draft (to date) is below.
I would love to hear your feedback (both positive and negative!)

Annual Reports  (Im not sure why there is an extra "2013" column, but its not on my spreadsheet?)


Assignment 1- draft to date

Food for thought.....

I was just going through Coventry Group's website again today and I found what I think is an interesting comment made by the Chairman- Roger Flynn (07/11/14)

"the plain fact is all the available data shows that the fastener industry which has traditionally made good profits is right now profitless and trading on unsustainable terms"

http://www.cgl.com.au/docs/corp-asx-announcements/07-11-2014-chairman's-address.pdf?sfvrsn=2

Konnect is the Coventry Groups largest and was the most profitable out of its four main subsidiaries.
The report goes on to give an explanation as to why the business may not be preforming so well.
These include, a strong Australian dollar, slow demand for product, having to sell the product at a lower rate to be competitive thus lowering the profit and the most worrying- being cut out of the deal.
Suppliers which were once selling to Konnect are now selling directly to Konnect's customers.

How would you ever get that customer back?
What does this mean long term for the Konnect business viability?

(this is totally a "sales" brain thinking out loud)

Blogs Blogs and more Blogs!!!

What better way to start of this post than with a Ron Burgundy meme!

After looking at a number of different blogs that have been posted to the Moodle forum I have decided to list the ones I find interesting so far. Some I have chosen for the content and others because I have a genuine interest in their company's.

1- Kailee Jephcott  https://kaileejephcott.wordpress.com

Kailee's company is Goodman Fielder. My prior knowledge of Goodman Fielder was that they distributed bread. After reading Kailee's blog they do much more.
I think its also a very interesting time in the company as it looks to be taken over by Singapore based Oils trader Wilmar. (Who i thought just owned sugar mills!)
Overall I learnt a lot from Kailee's blog.

2. Ella Skipper http://ellafay10.blogspot.com.au/

Im not going to lie, I was initially drawn to Ella's blog because it looks pretty.... and I like pretty things! Simple!
Ella has an upbeat and simple style of writing and I found it easy read and became easily engaged.
Her company is Dyesol and is very interesting. Looking forward to reading more about it in the next few weeks.

3. Mitch Coles  http://mcolesy.blogspot.com.au/

Mitch has a very light and chatty style of  writing which appeals to me. His company is Emeco which I use to drive past everyday on my way to work.  Living in a mining town and having worked in the mining sector I'm really looking forward to reading more about Emeco in Mitchs' blog.

4. Riana Pulfer   http://rianajp.blogspot.com.au/

I chose to seek out Riana's blog because I have a genuine interest in Mastermyne. I seen the company listed on the spreadsheet and decided to check out the blog associated. Mastermyne have recently acquired DMS for $20million which is a huge risk given the state of the mining industry at present.
I'm looking forward to reading a bit more about Mastermyne in the next coming weeks.

Coventry Group- Simplified

Basically the Coventry Group are a supplier and distributor of industrial products which is broken down into four main businesses.

1- KONNECT


Konnect supply fasteners (nuts, bolts, screws and nails etc) to the residential, mining and industrail industry. They pride themselves on stocking premium brands and offering superior knowledge and advice. This is the Coventry Group biggest business.

2- COOPER FLUID SYSTEMS (CFS)

CFS design , manufacture, distribute and install lubrication and hydraulic fluid systems, hose and fittings etc to the mining, construction and manufacturing industries.
In my opinion this is their most diverse business. Not only are they providing a product but they are designing, making it and installing it.

3- AA GASKETS

AA Gaskets distribute gaskets to the automotive industry.

Gaskets

4- Artia
Artia supply cabinet hardware for both domestic and commercial cabinet making, shop fittings etc.
Products they supply include; knobs and handles, draw slides and locks etc.

So there they are- Coventry Group. Pretty boring really. Unless your into nuts, bolts, lubrication gaskets or knobs and handles. 

While I might complain its a boring company, I'm glad they are. They supply and or distribute products that I'm aware of and they seem pretty straight forward when it comes down to the annual reports.

I will discuss my thoughts on the annual reports in my next exciting post. (I know you are all eagerly waiting for that moment!)

Till then...... 

Tash :) 

Coventry Group- are hurting!

Today I did a little research on my assigned company for ACCT11059 Assignment-
Coventry Group.

Coventry Group   |   ASX code: CYG  |  Current share price (14/03/2015) $1.84

The company was founded in 1920 by My RJ Kyle who was operating a small motor accessory business in Perth.

The business was sold then renamed and was listed on the ASX in 1966 as Coventry Motor Replacements.

In the 1980's the company made a number of acquisitions and extended it operations into bearings, gasket & fasteners industry.

At present the business operates as Coventry Group and employs about 800 people with a network of 70 branches & distribution centres.

It distributes industrial products, fasteners, fluid hydraulics and cabinetry hardware as well as manufacture and distribute gaskets.

The Coventry Group have four distinct businesses that trade as:

• Konnect Shop (formally Coventry Fastners)
• Cooper Fluid Systems
• Artia
• AA Gaskets (NZ Gaskets in New Zealand)

They also have two smaller Technology based businesses:

• Management System Services
• Multipro IT

So that's a wrap of the company according their website.

Upon 'Googling' Coventry Group a few things stood out to me. The business name and logo are familiar (but I had no idea what they actually did) and a post from the Motley Fool website also grabbed my attention.
 Why Coventry Group is down 17% today 

The article explains the company is struggling in more ways than one.

Its closing two distribution centres, cutting 100 jobs and its divesting its IT business because its loosing money.

Like many company's that supply directly to the resource sector they have been hit hard. This is an issue for the 2015 Annual Report however as it the article was produced in Feb 2015.

The 2014 Annual Report doesn't look that crash hot though. At a quick glance-

Konnect- Sales are down 7% compared to last year with a loss of $0.1 million.

Cooper Fluid Systems- Sales are down 19% as a direct affect by the reduced spending of the large mining company's.

Artia- Sales are down 22% which is the consequence of the planned exit from the 'furniture' side of the business.

AA Gaskets- Sales are up 1% 

Even to the 'untrained eye' of a first year, first semester uni student, 2014 did not look like a great year for the Coventry Group.

My thoughts........

How did the dividends per share remain the same for last three years even thought there has been a significant decrease to the company's profit?

Remuneration report- WOW!!!!!  

Im looking forward to doing some more in depth research on the company and its varied businesses.