You are given the following summarised financial statements of Holly plc, which is a competitor of your company.

During the years ended 31 December 2014. 2015, 2016 and 2017, €3,600m, €3,900m, €2,400m and €1,500m was debited to equity in respect of dividends paid.

Requirement You are required to prepare a report for the board of Directors of your company interpreting the financial statements of Holly plc from 2014 to 2017, including an analysis of its profitability and financial position

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SUMMARISED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME for the Years Ended 31 December. 2014 m 2015 2016 2017 m Revenue Cost of sales 35,100 39,000 m 41,700 m 42,900 (22,800) (25,800) (28,200) (30,300) Gross profit 12,300 13,200 13,500 12,600 Distribution costs 1,800 2,100 2,400 3,000 Administration costs 5,400 5,700 6,900 5,700 (7,200) (7,800) (9,300) (8,700) Operating profit 5,100 5,400 4,200 3,900 Interest (150) (600) (1,200) 1,500 Profit before taxation 4,950 4,800 3,000 2,400 Income tax expense (750) (150) (300) (450) Profit after taxation 4,200 4,650 2,700 1,950