You have been retained as a consultant by Theresa Cameron, a local entrepreneur. He recently learn that his competitor Rex Roomy is looking to sell his 70% controlling interest in Delicious ple which operates a chain of ice-cream shops within the region. Theresa has obtained the following summarised financial statements relating to Delicious plc. Income Statements for the year ended 31" December 2011 2012 Sales 7944 8004 Cost of sales 4768 4884 Gross Profit 3176 3120 Expenses 2532 2592 Operating profit (PBIT) 644 528 Interest 40 44 Profit before tax 604 484 Tax 128 104 Profit after tax 476 380 Dividends Preference 32 32 Ordinary 100 104 Retained profit for year 344 244 2013 8032 5624 2408 1948 460 48 412 92 320 2014 8040 5224 2816 2424 392 52 340 76 264 2015 8100 6036 2064 1748 316 60 256 52 204 32 108 180 36 128 100 36 140 28 Balance Sheets as at 31 December 2011 2012 2013 2014 2015 1250 750 2000 1250 1070 1250 1390 2640 1250 1870 1250 2262 2320 3120 3512 Non-current assets Land Property, plant & equipment Total Non-current (Fix) Assets Current assets Inventory Receivables Cash at bank Total Current Assets Total assets 96 448 100 644 2644 104 480 96 680 3000 108 484 120 712 3352 180 520 84 784 3904 272 536 36 844 4356 Capital Ordinary shares 1 Preference shares 1 Share premium Retained profits Total capital Non-current liabilities 1000 352 48 512 1912 1000 352 48 800 2200 1000 352 48 1028 2428 1200 400 100 1180 2880 1200 400 100 1216 2916 440 400 400 480 480 520 520 600 600 440 Long term loan 10% Total Non-current liabilities Current liabilities Accounts payable Tax Other current liabilities Total Current liabilities Total Capital and Liabilities 104 77 152 62 146 151 244 55 145 444 3352 300 45 159 504 3904 648 31 161 840 4356 332 2644 360 3000 Share price at 31" Dec. 4.40 4.32 4.28 4.20 3.80 You are required to: Provide an analysis of the financial performance of Delicious plc Your response should be in the form of a short report addressed to Theresa Cameron and should include appropriate financial accounting ratios and a recommendation as to whether you believe investment in the company would be worthwhile