You are the Management Accountant of Fry plc. Laurie plc is a competitor in the same industry and it has been operating for two years. Summaries of Laurie plc’s statements of profit or loss and other comprehensive income and statements of financial position for the previous three years are given below.

During each of the years ended 31 December 2015, 2016 and 2017, €24m was debited to equity in respect of dividends. You may assume that the index of retail prices has remained constant between 2015 and 2017.
Requirement Write a report for the Finance Director of Fry plc which analyses the performance of Laurie plc, showing any calculations in an appendix to the report.

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SUMMARISED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME for the Years Ended 31 December 2015 2016 2017 m m m Revenue 840 981 913 Cost of sales (554) (645) (590) Gross profit 286 336 323 Selling, distribution and administration expenses (186) (214) (219) Profit before interest 100 122 104 Interest (6) (15) (19) Profit before taxation 94 107 85 Income tax expense Profit after taxation (45) (52) (45) 49 55 40