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Securitie Ltd's common size statements of financial performance for 2017 and 2018 are presented below. All amounts are expressed as percentage of revenue. 2017 Revenue

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Securitie Ltd's common size statements of financial performance for 2017 and 2018 are presented below. All amounts are expressed as percentage of revenue. 2017 Revenue (all sales) Cost of sales Gross profit Expenses (including tax) Profit 100.0 73.6 26.4 17.6 8.8 2018 100.0 65.0 35.0 19.8 15.2 Required (a) Critically evaluate the company's profitability. Hint: you are expected to discuss all items as well as their relationships where appropriate. (8 marks)

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