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

Helena Beauty Products Ltd Income statement for the year ended 30 September 2007 2008

£000 £000 £000 £000 Sales revenue 3,600 3,840 Cost of sales Opening inventories 320 400 Purchases 2,240 2,350 2,560 2,750 Closing inventories (400) (2,160) (500) (2,250)

Gross profit 1,440 1,590 Expenses (1,360) (1,500)

Profit for the year 80 90 Statement of financial position (balance sheet) as at 30 September 2007 2008

£000 £000 Non-current assets Property, plant and equipment 1,900 1,860 Current assets Inventories 400 500 Trade receivables 750 960 Cash at bank 8 4 1,158 1,464 Total assets 3,058 3,324 Equity

£1 ordinary shares 1,650 1,766 Retained earnings 1,018 1,108 2,668 2,874 Current liabilities 390 450 Total equity and liabilities 3,058 3,324 Required:

Using six ratios, comment on the profitability (three ratios) and efficiency (three ratios) of the business as revealed by the statements shown above.