CIMA F3 case studies
CIMA F3 · Put your knowledge to work in context.
CIMA F3 Financial Strategy is the Financial Strategy subject of the CIMA Professional Qualification at the Strategic level, one of the three levels a candidate progresses through on the route to the CGMA designation. It is aimed at finance professionals who have moved beyond operational reporting and are expected to shape how an organisation raises, allocates and protects capital - typically management accountants in commercial finance, business partnering or senior analyst roles, and those preparing to work at, or already working at, finance leadership level. The CIMA F3 case studies are 5 cases and about 3,428 words.
1Northwind Components: Dividend Sustainability and Automation Funding
Northwind Components Ltd is a UK precision-engineering group with revenue of £120m and EBITDA of £10m, a margin that has fallen from 12% to 8.3% in three years. Net debt is £22m against a bank covenant of net debt/EBITDA not exceeding 2.5x.
617 words, about 3 min2Halcyon Pharma: Funding the Patent Cliff
Halcyon Pharma plc has EBITDA of £80m and net debt of £120m. Its bank facilities require net debt/EBITDA below 3.0x and EBITDA/interest cover above 4.0x.
730 words, about 4 min3Meridian Ports: Terminal Investment Under Demand Risk
Meridian Ports plc is evaluating a new container terminal. The project requires £150m of capital expenditure, depreciated straight-line to zero over 10 years.
644 words, about 3 min4Cobalt Analytics: Acquisition Price and Consideration Mix
Cobalt Analytics plc, a software group with 50 million shares trading at £6.00 and a P/E ratio of 18, plans to acquire Delta Insight Ltd. Delta has EBITDA of £12m, depreciation of £3m and net debt of £8m.
659 words, about 3 min5Sovereign Telecom: Leveraged Recapitalisation and WACC
Sovereign Telecom plc has £200m of debt carrying a 5% pre-tax interest rate and an equity market value of £800m. Its cost of equity is 11%, and the tax rate is 25%.
778 words, about 4 min