My Company!
For this course I have been assigned Schaffer Corporation
Limited as my company. At first I was overwhelmed at how much information I
needed to absorb to really fully understand what Schaffer Corporation is all about.
I come across difficulties in understanding what our assessment requirement
asks in concern to the key concept and questions that may occur to us.
Nonetheless, I am hoping that I have complied with the assessment
requirement.
Let me tell you about Schaffer Corporation Limited. Schaffer
Corporation Limited is a developed company which specialised in;
·
Building Materials
·
Automotive Leather and
·
Property.
The building material
division, Schaffer Corporation is a supplier of building, constructions and
landscaping products and a range of paving, walling and also manufacturing a
range of precast and pre stressed concrete floor, beams and wall product.
In addition, the automotive leather Schaffer Corporation supplies
interior leather to companies such as Audi, Volkswagen, Land Rover, Nissan,
Toyota and Ford.
Finally the property division Schaffer Corporation manages
commercial and retail properties within Western Australia and Victoria.
Two out of seven of the Schaffer Corporation Limited
managing directors have CPA qualification and One has MBA (Masters of Business
Administration).
Schaffer Corporation Limited is also been listed in
Australian Stock Exchange and as at June 2013 Schaffer is trading at $3.46 per
share.
The report for the 2013 financial year Schaffer Corporation
accomplished a net profit after tax of $7.6million, as a result an increase of
1% from the previous year. In the building material division an increased in
EBIT by 10% to $5.5million as revenue increased by 4% to $58.6million. Also, in
the automotive leather division EBIT decreases to $5.0 million as revenue
decreased by 19% to $72.9 million. Furthermore, within the property division
EBIT increased to $7.5 million and revenue increased by 8% to $7.1 million,
$3.5 million of that EBIT was from ongoing operations and $4.0million
represented proceeds from the insurance claim.
In investigating Schaffer Corporation Limited a few questions
have come to my attention. One of these is why the revenue is higher in 2012
than 2013. On the other hand 2013 still had a higher net profit after tax than
the previous year, as a result I had difficulty understanding this point. In
addition to the above question I also questioned why in 2013 Schaffer firm
commercial sales and market position in Western Australia and South Australia
was high, nonetheless, there was poorer performance in the eastern states.
Schaffer Corporation Limited had been known to pay dividend
to stock holders for the past 50 years since it was originally listed as Calsil
Ltd. Employees of Schaffer Corporation have been known to be loyal to the
company, as Schaffer have committed to providing a healthy environment.
Schaffer Corporation Limited has come across challenges
within its automotive leather section with recording lower sales revenue as a result
of the strong Australian dollars in the previous year. Nevertheless, Schaffer
Corporation had installed a new database to renew revenue growth; also with the
easing of the Australia dollar this would also add to revenue growth within the
automotive leather division. Moreover, the decline that occurred in China has
resulted in a volume decreased of 44% as a result of strong Australian dollar.
Schaffer Corporation seeks to invest in research and development of its technological
process to create cost savings and
enhance its reputation as a high quality and low cost producer.
In addition, the
fluctuation of the Australian dollar remains a challenge for Schaffer
Corporation however, with this fluctuation Schaffer Corporation will benefit an
increased within export division. Furthermore, Schaffer Corporation has had
challenges within the building material industries as a result of current
economic and industry conditions resulting continuing low residential and
commercial building activities. The government-funded projects, like the
Western Australian state government’s ‘super towns’ scheme have help to reduce
to somewhat poor business unit performance. Although, Schaffer Corporation
continues to face challenges, they have responded well to different
difficulties conditions and always position itself for growth.
Schaffer Corporation
Limited Annual Reports and Current Share Price
Schaffer News about
dividends
