Esprit Rock

According to the financial analysis

According to the financial analysis, Hikma’s is not worth giving loan of £50 million for 5 years at around 6% interest. Even though Hikma’s sales (exc VAT) have been steadily growing, growth in sales is notable, which drives gross but its current operating profits and net profit is a loss which therefore affect shareholders dividends.. They have high dividend yield and combined with the relatively low price during the last 12 months this implies that buying shares would not be a wise choice. These shows Hikma’s is currently not a good choice for both investors. There is a low probability that Hikma’s will grow in the future, according to the key performance indicators, therefore it is highly recommended not to loan out. It is necessary to bear in mind that if Hikma’s to grow, the current operating profit needs to be improved since it is now in its lowest in the past three years. It would probably be wise to loan out later rather than now.

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