Statement of the comprehensive income for the company for the year 2010 and year 2011 are given below. It is clear from the below statements that the company income is reduced in the year 2011 as compared to the previous year, this reduce in the income of the company shows the decline in the profit of the organisation. In 2011, profit of the company was £117.11m as compared to the profit of £147.1m in 2010 , this shows the clear decline in the profit of the company by almost (147.1-117.11) £30m, hence this reduce in the profit of the company is not a very encouraging sign as far as the profitability of the organization is concern, cited by Rajendra (2007).
It can see a very serious decline in other comprehensive income of the year that was £69.1 m in year 2010 reduced to £28.9 m in year 2011. Total comprehensive income of the First Group company is reduced to £ 146 m in year 2011 from £ 216.2 m in the year 2010. From all the above, it can easily judge that the profitability of the company is reduced to the great extent in the year 2011 as compare to the year 2010, and as the profitability of the company is reduced, the dividend per share given was also reduced, cited by First Group Company (2012).
Source: First Group Company (2012)
Source: First Group Company (2012)
BIBLIOGRAPHY
Book:
- Rajendra S. (2007), “Firms of Endearment: How World-Class Companies Profit from Passion and Purpose”, 1st Edition, Pearson Prentice Hall
Website:
- First Group Company (2012), “Annual Report and Accounts 2011”, [Online] Available at: http://www.firstgroup.com/assets/pdfs/investors/annual_reports/2011_annual_report.pdf (Accessed 5 April 2012).
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