The directors of Helena Beauty Products Ltd have been presented with the following abridged financial statements:

Required:
Using six ratios, comment on the profitability (three ratios) and efficiency (three ratios) of the business.

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Helena Beauty Products Ltd Income statement for the year ended 30 September 2014 2015 £000 £000 £000 £000 Sales revenue 3,840 3,600 Cost of sales Opening inventories 320 400 Purchases 2,240 2,560 (400) 2,350 2,750 (500) Closing inventories Gross profit Expenses Profit (2,160) 1,440 (2,250) 1,590 (1,500) (1,360) 80 90 Statement of financial position as at 30 September 2014 2015 £000 £000 ASSETS Non-current assets Property, plant and equipment Current assets 1,900 1,860 Inventories 400 500 Trade receivables 750 960 Cash at bank 4 1,158 1,464 Total assets 3,058 3,324 EQUITY AND LIABILITIES Equity £1 ordinary shares Retained earnings 1,650 1,018 2,668 1,766 1,108 2,874 Current liabilities 390 450 Total equity and liabilities 3,058 3,324