COMM1140 Financial Management Group Assignment Term 1, 2026 | UNSW Sydney

COMM1140 Financial Management - Term 1, 2026

Group Assignment

Instructions:

The group assignment is worth 25% of the total assessment for this course. In your Week 5 tutorials, your tutor will randomly divide you into groups. Each group will be allocated one of the below companies, which you must use to complete the task below (hereafter, 'assigned company). The 2025 annual report of your assigned company must be used to complete this assessment. For comparative purposes, you may also use other relevant annual reports or public information.
1. Lovisa
2. EVT
3. Michael Hill
4. Flight Centre
5. Temple & Webster

Assignment:

All Australian businesses are currently facing uncertain trading conditions. High inflation and labour shortages have created sudden cost pressures and forced businesses to pass on cost increases to their customers. Additionally, rising interest rates pose a growing risk to businesses that have accumulated high levels of debt and increase the likelihood of a global recession occurring in the next 12 months.

You are a UNSW Commerce graduate in 2025 who quickly found employment in Felicity Trust, a financial services company that specialises in providing loans to large Australian businesses. Your manager has asked you to prepare a presentation to help Felicity Trust decide whether it should continue lending money to your assigned company. This is the first task your manager has asked you to complete independently, and you want to ensure that you impress! Luckily, you took notes when the task was assigned to you, which should be strictly followed to complete this task. NOTE: Please also carefully read the marking criteria (rubric) for this assignment (provided in a separate document) which provides you with further details about what is expected.

The notes are as follows:

Question 1: Present a description of the business and the nature of its operations. This should focus on providing a short explanation of the business's history, how it generates revenue, and who forms its customer base + purpose of pres. (5 Marks); (Maanya)

Nine Entertainment is a publicly listed, Australian media company with key holdings in news, sports, lifestyle and entertainment sectors. Starting out as a broadcasting station in Sydney 1956, several mergers and acquisitions with companies like Fairfax Media, Australian Consolidated Press, have led to its current position as the largest company in the Australian media industry. Revenue is generated from the 9 Network, on demand platforms 9NOW and Stan, talk radio and digital media sites such as The Sydney Morning Herald. Their customer base spans across 65, specifically segmented audiences due to the diversity of their assets, however their overall customer base consists of the average 18-54 year old Australian. This report will analyse their financial standings and evaluate if Felicity Trust should continue to provide loans to the firm in the near future.

Question 2. Present a financial statement analysis of the financial performance and financial position of the company (35 Marks); (Issac, Shane)

Question 2 is about your ability to apply and interpret financial ratios. We encourage you to discuss what the calculations you include in the appendix tell you about your company's financial performance and financial position. All calculations you perform should be listed in the Appendix. Focus on the key observations from your analysis in your presentation. The better you manage this expectation, the higher your grade will be.

Question 3. Identify one risk from reading the reports prepared by key management personnel (i.e., Board Chair and/or CEO) in the 2022 annual report that may impact the company's future financial performance and/or financial position. You should explain clearly how the risk you identify could affect the ratios discussed in part 2 above (10 Marks); (Maanya)

Question 4. Using two Firm Multiples and two Equity Multiples of three similar companies (Seven West Media + SBS Australia + Australian Broadcasting Corporation) to your assigned company (30 Marks): (Gloria, Wing)

Question 4 is about multiples valuation. Start with a brief overview of the method, then walk your audience through how you used that method to value the firm. Be sure to explain any assumptions you made and how they might impact your valuation. You need to explain the rationale for choosing your comparable firms. Gather data on the firm you are valuing as well as the firm's competitors. There are several methods for multiples valuation, including firm multiples and equity multiples. Choose the methods that are most appropriate for your analysis. Please put all your calculations in the appendix, and your tutor will check them. Discuss if there are any discrepancies between the valuations