Review of the Annual Report & Accounts regarding the financial Essay

Review of the Annual Report & Accounts regarding the financial performance of the QE11 for the year ended 31 March 2013 - Essay Example This improvement can be attributed to improved strategies that helped the centre maximise in potential. The first main reason for the improvement in cash flow was the presence of the Olympic and Paralympic Games in London between July and August 2012 (QEIICC, 2013).During this period, the centre operated as the Olympic House for Italy. This booking acted as a very strong boost for a positive cash flow. Another reason for the improvement of the cash flow was a change in strategy where the centre decreased its dependency on government bookings and concentrated on hosting both local and international professional associations and corporations. During the 2013 financial year, the centre received 326 meetings and events with government bookings accounting for only 18% of these bookings translating to only 5% of the revenue received the whole year (QEIICC, 2013). The final reason for this improvement in cash flow is an extensive and effective marketing campaign instituted. The marketing campaign targeted both the local and international markets and it was maximised through the sale and subsidiary services and opportunities. During the financial year ending 31 March 2013, the QE11 planned to achieve a minimum divided payment to the local government and to the Department of Communities equal to 6% of the total capital employed. This step was taken to ensure that the centre retains cash. Stutely (2007) notes that in some situations Chief Financial Officers may choose to retain cash rather than paying out dividends to shareholders for a variety of reasons. In the case of the QE11 several reasons may precipitate the retention of cash. Atrill and McLaney (2011) argue that retaining surplus cash is important as it provides more flexibility in an uncertain market. The government’s decision to severely cut down the number of government bookings has resulted in creating a volatile situation