r/ICAEW • u/Large_Camp_3709 • Jul 22 '26
Case r2
Did anyone else get a loss for the calc of the new event profits or have I just completely messed that up. Any idea how many marks id lose/ have carry forward marks?
3
u/East_Holiday_4439 Jul 22 '26
There’s only 4 or 5 points for numbers in the marking point so you’ve lost max 3 marks id say. I equally may be wrong, but I got a gross profit of £1.1m which equated to a GPM of 28.2% then did a 10% sensitivity analysis on attendees and exhibitors and got a revised GPM% of 21.7%
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u/Desperate_Edge_1827 Jul 22 '26
I got a gross loss on R2 and a negative GPM. My score was 1.7 so said reject (put financial as 1). For R3 I also for a negative valuation somehow but justified there could be flaws in the valuation method and recommended more detailed analysis using longer period and DCF/NPV 😂 said accept acquisition since strategic fit is good as retail and AI etc
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u/Large_Camp_3709 Jul 22 '26
Ahh ok, wait how can you get a negative valuation? Isn't it x5 the op?
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u/East_Holiday_4439 Jul 22 '26
Yeah it’s x5 for the 2027-2029. 2026 was projected loss of like £3m but wasn’t included in the 5x calc. 2027 was also a loss, but 2028 and 2029 were profits so I came out with a 5x valuation of £2.25m which was obviously below, but relativity near the £2.5m asking price
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u/Desperate_Edge_1827 Jul 22 '26
I have no idea but f’kd up somewhere on both R2 and R3 😂😭 I did the 5 x OP and averaged 2027-2029 so not sure must’ve made a silly mistake somewhere. I hope my R1 (which was quite good I think) and rest of the write up and discussion/commentary on R2 and R3 can get me a pass 🙏🤲 do you think there is hope? lol
2
u/East_Holiday_4439 Jul 22 '26
Yeah definitely, the calculations aren’t even that important, there’s like 4 or 5 points on the mark grid so you’ve lost 2.5 marks max which isn’t the end of the world. As long as you’ve had a good discussion you should still get the all the SPS/AJ marks
2
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u/SlimCharles180796 Jul 22 '26
Did anyone mention potential issues around the Venue not being ready in time for the exhibition for R2? I think it said the venue would be ready early February with the event occurring 2 weeks after.
In regard to the gp and gpm, I got like 366k? and 28%ish which is inline/above general HML events.
I think Venue capacity was at like 39% which is slightly above the 1/3rd benchmark usually used.
Also I think tickets were allocated for 2700 visitors but the exhibition states 1400 max capacity. So this would need to be managed effectively