(c) Data response questions. Helix plc manufactures a range of components for high-technology products such as tablets and smartphones and is one of the largest firms in the industry. The company has its headquarters in London (which are valued at £95 million), but much of its manufacturing is carried out in Vietnam and Thailand. The company wishes to raise £125 million to finance expansion in Cambodia and to allow it to close its UK factories. This is forecast to lower its costs by 20 per cent and is judged essential to improve the company's very low overall profit margin of 1.9 per cent: some of its products have negative profit margins. It is considering taking advantage of the property boom in London by selling its offices and leasing them back again. Much of its capital has been raised through the sale of shares and it has low levels of borrowing The company supplies many major technology companies including Samsung and is noted for its price competitiveness in return for prompt payment. Helix ple's customers appreciate the quality of its products as well as its reliability. Demand for its products is surprisingly price inelastic. It places very large orders with its own suppliers and benefits from its scale.
Do you think that Helix PLC should improve its profitability by moving production from the UK to Cambodia? Justify your opinion. (16 marks)​