10h 45min, mar 6, 2025 y - Multivac Key WP Review

Description:

Sell packing machines
Revenue streams
-sales/distribution (incl direct ships to customer)
-rental
-service
TOC on everything
PM local £620k group £1.5m

FS Review
Revenue -£200k to £82.8m; less machine and materials (film, spares)
GP% +4% on machines -6% on materials due to plastic raw material price down, Morrisons lower margin, plastic tax up/tonne
Admin +£700k; wages +£1m due to 7% increment and 4 new heads, commission to ireland -£230k
Fixed assets +£100k to £3.15m; £600k additions, £1m disposals due to clear down scrapped items, £400k depreciation
ROU £800k additions and disposals, motor vehicles
Inventories -£500k to £10.9m; stock roll forward, stocktake done; provision ROC calc checked to consumption report; GIT agreed; NRV issue trivial
Trade receivables; 3/17 confirms, 67% recoverability, IC confirms received, afterdate CN no issues
Bank confirms received
Warranty; utilisation not checked??? ask for last 5 years
Trade payables; supplier statements & invoices checked; debit balances, post y/end invoices not accrued for open item???, no payments tested
Accruals; largely bonuses checked to contract, NI checked, utilisation fully
SSOT £1.8m CT checked, PAYE/NI, VAT no issues
Customer deposits £4.2m verified PO, bank statements, not delivered yet
DB scheme buyout completed last year
Board minutes reviewed
Legal confirm - potential trademark infringement against customers but not seeking damages
Derivatives; currency forwards unrealised accounting correct
Director expenses checked
No GC issues
EPR to discuss with the client?

Key WP
Journals
-000/999 need supporting document not journal bookings
-rest is good
RR
-working paper good
-controls testing applied to all revenue streams incorrectly

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