Analysis Of Havelock Europa Plc An International...

Question A Havelock Europa PLC is an international interior solution company, it provides services to retailer, educational institution and financial services, etc (Havelock Europa, 2013). Therefore, the account of Havelock Europa contains the features of interior industry, and the following auditing research of the object will consider the relative factors. The company invested in a laser cutting machine cost  £0.7m, and the company’s chairman David (2014) claimed that the cutter â€Å"enabled us to achieve significant productivity improvements†. In addition, the new leaser cutting machine was started to use from July onwards. The gross profit margin of 2013 is 11.52% higher than 2012. In terms of financial statements, the firm shows labour using and production process in 2013 are more efficiency than 2012. Base on that, we can assume the cutting machine result 11.52% increase halfway through, it should increase another 11% in the next half year. Besides that, efficient performance accompany the new cutting machine may cause less spend on the salary. Revenue Havelock Europa annual report (2014) stated that according to the management information there was no change on the operating segments between the two years, therefore the two years figure of interiors segment is comparable. There was a decline about 3.11% in total revenue occurred in 2013, which decreased from  £92,460,000 to  £89,590,000. There are two segments were reported, the one is interiors and the other one is