The following information is available for a group classified within the 'Engineering, Vehicles' sector in the Financial Times.

By the year end, the group's principal activities comprised public service vehicle manufacture and distribution. It is group policy to prepare its financial statements using the historical cost convention except for the revaluation of land and buildings which were last revalued in the year ended 31 March 1998.
Requirement Comment on the performance of the group as far as you are able using the information above. You are not required to calculate any further ratios.

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Years ended 31 March 1999 1998 Gross profit/sales 12.8% 13.6% Operating profit/sales - total 4.5% 4.9% - on continuing operations 8.4% 12.0% - on discontinued operations 2.1% 2.1% Current ratio 2.1:1 1.2:1 Quick (or acid test) ratio 1.2:1 0.3:1 Gearing ratio (debt:equity) 11.9% 14.9% Return on capital employed Stock turnover period Debtors collection period 18.9% 36.4% 44 days 78 days 6 days 9 days Creditors payment period 21 days 26 days Sales/fixed assets 12 times 8 times Earnings per share - basic 21.3p 42.3p Earnings per share - adjusted for exceptional item 39.6p 42.3p Turnover from continuing operations 158.2m 148.1m Turnover from discontinued operations 265.5m 374.6m Turnover total - 423.7m 522.7m