Posted: March 21st, 2016

Madison plc provides intellectual property to Oil and gas companies, HR consultants, Marketing companies, Tourist companies and investment property funds all over the UK

M004LON Coursework 2 – April 2016.
Individual coursework – Contributes 60% of total marks.
CASE STUDY – MADISON PLC
Students are required to submit an individual report before the deadline with a maximum of 2500
words based on the following case study. You will also be required to make a 5 to 6 Minutes
presentation as summary of your report in week 10 just before submission. You will be required
to send your presentation slides to your Tutor a day before presentation. The slides should not be
more than 6.
CASE STUDY – MADISON PLC
Madison plc is a public limited company, whose shares are quoted on the Alternative investment
Market in London and has been operation in the UK for the past 10 years. Madison plc provides
intellectual property to Oil and gas companies, HR consultants, Marketing companies, Tourist
companies and investment property funds all over the UK. For the past 10 years, Madison plc has
been a profit making firm as it has retained its previous clients, in addition to capturing an increasing
share of the market. However, the Finance director of Madison has recently engaged your firm to
help them source Finance for their expansion plans.
New Software
The current software product that Madison has been selling to companies is now deemed to be
outdated and the company is looking to invest in a new product, and there are two proposals on
offer. The details of these two proposals are outlined below.
Madison Super
Madison super is the first of the two proposals. The expected life of this product is 5 years and its
working capital requirements and the cost of new software, expected revenue, components cost
and overheads are as below:
Madison Super Draft Figures £‘000
Year 0 1 2 3 4 5