Below are the summarised nancial statements for the year to 31 March 2015 and 2016 of Heywood Bottles, a company which manufactures bottles for many different drinks companies. Note. The statements for the year to 31 March 2016 have not been audited. Heywood Bottles - Statements of comprehensive income for the years ended 31 March 2016 2015 $m $m $m $m Revenue 300 120 Manufacturing costs 261 83 Depreciation _9 _7 Cost of sales @) @) Gross prot 30 Other expenses @) @) Prot before interest and tax 2 20 Finance costs Q) E) Prot/(loss) before tax (8) 18 Income tax expense E) E) PROFITI(LOSS)I'|'0TAL COMPREHENSIVE INCOME FOR THE YEAR L) 2 Dividends paid 6 6 Heywood Bottles - Statements of nancial position as at 31 March 2016 2015 $m $m Non-current assets Land and buildings 5 5 Plant and equipment 18 E 2 a Current assets Inventories 18 12 Receivables 94 25 Deferred expenditure 6 - Bank _- _8 m a u E Equity $1 ordinary shares 25 25 Capital reserves 10 11 Retained earnings ) _8 g 44 Non-current liabilities Finance lease liabilities 2 19 Current liabilities Trade payables 80 15 Other payables 12 10 Bank overdraft _- E a E a Note: Plant and equipment is made up as follows. At 31 March 2016 2015 $m $m Owned plant 18 10 Leased plant Q g a a The directors were disappointed in the prot for the year to 31 March 2015 and held a board meeting in April 2015 to discuss future strategy. The Managing Director was insistent that the way to improve the company's results was to increase sales and market share. As a result the following actions were implemented. (a) An aggressive marketing campaign through trade joumals costing $12 million was undertaken. Due to expected long-term benets $6 million of this has been included as a current asset in the statement of nancial position at 31 March 2016. (b) A 'price promise' to undercut any other supplier's price was announced in the advertising campaign. (c) A major contract with Koola Drinks was signed that accounted for a substantial proportion of the company's output. This contract was obtained through very competitive tendering. (d) The credit period for receivables was extended from two to three months. A preliminary review by the board of the accounts to 31 March 2016 concluded that the company's performance had deteriorated rather than improved. There was particular concern over the prospect of renewing the bank facility because the maximum agreed level of $30 million had been exceeded. The board decided that it was time to seek independent professional advice on the company's situation. Required In the capacity of a business consultant, prepare a report for the board of Heywood Bottles based on a review of the company's performance for the year to 31 March 2016 in comparison with the previous year. Particular emphasis should be given to the effects of the implementation of the actions referred to in points (a) to (d) above