Additional Questions

Question 1

What is turnover / gross profit / net profit?

Answer 1

Turnover – total company’s revenue
Gross profit – revenue - costs of goods sold
Net profit – gross profit – expenses

Question 2

What is SONIA?

Answer 2

The Sterling Overnight Index Average (SONIA) rate is an interest rate benchmark used in the United Kingdom

SONIA is a risk-free rate meaning no bank credit risk is included.

Question 3

What is a yield?

Answer 3

Measure of return on an investment

Question 4

When would you not use the comparable method for vacant property?

Answer 4

For retail, but you would always assess potential buyers – if there would be developers then investment method may be appropriate.

Retail property is heterogenous and value is very specific to each individual unit

Question 5

What are the drawbacks of creditsafe?

Answer 5

You don’t know exactly what they are basing their rating on, rating somewhat subjective, not as well industry recognised, could be different to other indices scores