2. Business and geographical segments

IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Chief Executive to allocate resources to the segments and to assess their performance.

The Group's reportable segments have been determined in accordance with the activity of the Group, focusing on key market sectors. Principally, this splits the Group into two business areas, being:

  • Aerospace, Defence & Energy ('ADE'); and
  • Automotive & General Industrial ('AGI').

This initial split is determined following consideration of factors including the different customer sets, differing service requirements and different characteristics of business activity. A further split is then made for the geographical divisional split of the Group, being:

  • Western Europe;
  • North America; and
  • Emerging Markets.
GroupHalf year to 30 June 2012
ADE
£m
AGI
£m
Head
Office and
eliminations
£m
Consol-
idated
£m
Revenue



Total revenue 130.3 171.0 301.3
Result



Headline operating profit prior to share-based payments and unallocated corporate expenses 32.5 24.3 56.8
Share-based payments (1.2) (1.5) (1.3) (4.0)
Unallocated corporate expenses (5.3) (5.3)
Headline operating profit/(loss) 31.3 22.8 (6.6) 47.5
Amortisation of acquired intangible fixed assets (0.4) (0.3) (0.7)
Acquisition costs (0.8) (0.4) (1.2)
Segment result 30.1 22.1 (6.6) 45.6
Investment revenue


0.1
Finance costs


(1.9)
Profit before taxation


43.8
Taxation


(11.2)
Profit for the period


32.6

Inter-segment sales are not material.

The Group does not rely on any major customers.

Aerospace, Defence & EnergyHalf year to 30 June 2012
Western
Europe
£m
North
America
£m
Emerging
markets
£m
Total
ADE
£m
Revenue



Total revenue 58.8 70.8 0.7 130.3
Result



Headline operating profit prior to share-based payments 12.9 19.6 32.5
Share-based payments (0.4) (0.8) (1.2)
Headline operating profit 12.5 18.8 31.3
Amortisation of acquired intangible fixed assets (0.1) (0.3) (0.4)
Acquisition costs (0.8) (0.8)
Segment result 12.4 17.7 30.1
Automotive & General IndustrialHalf year to 30 June 2012
Western
Europe
£m
North
America
£m
Emerging
markets
£m
Total
AGI
£m
Revenue



Total revenue 117.2 31.4 22.4 171.0
Result



Headline operating profit prior to share-based payments 16.6 7.0 0.7 24.3
Share-based payments (1.1) (0.3) (0.1) (1.5)
Headline operating profit 15.5 6.7 0.6 22.8
Amortisation of acquired intangible fixed assets (0.1) (0.1) (0.1) (0.3)
Acquisition costs (0.4) (0.4)
Segment result 15.4 6.2 0.5 22.1
GroupHalf year to 30 June 2011
ADE
£m
AGI
£m
Head
Office and
eliminations
£m
Consol-
idated
£m
Revenue



Total revenue 115.9 172.3 288.2
Result



Headline operating profit prior to share-based payments and unallocated corporate expenses 26.2 25.0 51.2
Share-based payments (1.0) (2.1) (1.2) (4.3)
Unallocated corporate expenses (3.7) (3.7)
Headline operating profit/(loss) 25.2 22.9 (4.9) 43.2
Amortisation of acquired intangible fixed assets (0.1) (0.4) (0.5)
Segment result 25.1 22.5 (4.9) 42.7
Investment revenue


0.1
Finance costs


(2.5)
Profit before taxation


40.3
Taxation


(10.5)
Profit for the period


29.8
Aerospace, Defence & EnergyHalf year to 30 June 2011
Western
Europe
£m
North
America
£m
Emerging
markets
£m
Total
ADE
£m
Revenue



Total revenue 55.9 59.3 0.7 115.9
Result



Headline operating profit prior to share-based payments 11.8 14.3 0.1 26.2
Share-based payments (0.5) (0.5) (1.0)
Headline operating profit 11.3 13.8 0.1 25.2
Amortisation of acquired intangible fixed assets (0.1) (0.1)
Segment result 11.2 13.8 0.1 25.1
Automotive & General IndustrialHalf year to 30 June 2011
Western
Europe
£m
North
America
£m
Emerging
markets
£m
Total
AGI
£m
Revenue



Total revenue 123.2 23.2 25.9 172.3
Result



Headline operating profit prior to share-based payments 19.0 3.8 2.2 25.0
Share-based payments (1.7) (0.3) (0.1) (2.1)
Headline operating profit 17.3 3.5 2.1 22.9
Amortisation of acquired intangible fixed assets (0.4) (0.4)
Segment result 17.3 3.5 1.7 22.5
GroupYear ended 31 December 2011
ADE
£m
AGI
£m
Head
Office and
eliminations
£m
Consolidated
£m
Revenue



Total revenue 233.5 337.2 570.7
Result



Headline operating profit prior to share-based payments and unallocated corporate expenses 53.2 47.8 101.0
Share-based payments (2.1) (3.1) (2.0) (7.2)
Unallocated corporate expenses (8.3) (8.3)
Headline operating profit/(loss) 51.1 44.7 (10.3) 85.5
Amortisation of acquired intangible fixed assets (0.2) (0.7) (0.9)
Impairment charge (4.2) (4.2)
Segment result 50.9 39.8 (10.3) 80.4
Investment revenue


0.2
Finance costs


(4.8)
Profit before taxation


75.8
Taxation


(19.8)
Profit for the year


56.0
Aerospace, Defence & EnergyYear ended 31 December 2011
Western
Europe
£m
North
America
£m
Emerging
markets
£m
Total
ADE
£m
Revenue



Total revenue 111.9 120.1 1.5 233.5
Result



Headline operating profit prior to share-based payments 23.6 29.4 0.2 53.2
Share-based payments (1.0) (1.1) (2.1)
Headline operating profit 22.6 28.3 0.2 51.1
Amortisation of acquired intangible fixed assets (0.2) (0.2)
Segment result 22.4 28.3 0.2 50.9
Automotive & General IndustrialYear ended 31 December 2011
Western
Europe
£m
North
America
£m
Emerging
markets
£m
Total
AGI
£m
Revenue



Total revenue 239.6 47.4 50.2 337.2
Result



Headline operating profit prior to share-based payments 36.0 8.3 3.5 47.8
Share-based payments (2.5) (0.5) (0.1) (3.1)
Headline operating profit 33.5 7.8 3.4 44.7
Amortisation of acquired intangible fixed assets (0.1) (0.6) (0.7)
Impairment charge (4.2) (4.2)
Segment result 33.4 7.8 (1.4) 39.8

Other information

GroupHalf year to 30 June 2012
ADE
£m
AGI
£m
Head
Office and
eliminations
£m
Total
Group
£m
Capital additions 17.1 11.1 1.6 29.8
Depreciation and amortisation 9.6 15.8 0.8 26.2
Balance sheet



Assets:



Segment assets 327.5 409.9 21.0 758.4
Other investments 1.6 1.6
Consolidated total assets 327.5 409.9 22.6 760.0
Liabilities:



Segment liabilities (64.0) (120.0) (91.5) (275.5)

263.5 289.9 (68.9) 484.5
Allocation of head office net liabilities (32.8) (36.1) 68.9
Adjusted segment net assets 230.7 253.8 484.5
Aerospace, Defence & EnergyHalf year to 30 June 2012
Western
Europe
£m
North
America
£m
Emerging
markets
£m
Total
ADE
£m
Capital additions 4.9 12.2 17.1
Depreciation and amortisation 5.1 4.4 0.1 9.6
Balance sheet



Assets:



Segment assets 154.6 168.9 4.0 327.5
Liabilities:



Segment liabilities (30.5) (33.2) (0.3) (64.0)
Segment net assets 124.1 135.7 3.7 263.5
Automotive & General IndustrialHalf year to 30 June 2012
Western
Europe
£m
North
America
£m
Emerging
markets
£m
Total
AGI
£m
Capital additions 8.0 1.8 1.3 11.1
Depreciation and amortisation 11.5 2.0 2.3 15.8
Balance sheet



Assets:



Segment assets 282.0 68.5 59.4 409.9
Liabilities:



Segment liabilities (89.4) (14.9) (15.7) (120.0)
Segment net assets 192.6 53.6 43.7 289.9
GroupHalf year to 30 June 2011
ADE
£m
AGI
£m
Head
Office and
eliminations
£m
Total
Group
£m
Capital additions 7.4 12.7 1.0 21.1
Depreciation and amortisation 9.3 15.3 0.6 25.2
Balance sheet



Assets:



Segment assets 312.8 443.5 28.3 784.6
Other investments 0.5 0.5
Consolidated total assets 312.8 444.0 28.3 785.1
Liabilities:



Segment liabilities (68.7) (115.5) (121.1) (305.3)

244.1 328.5 (92.8) 479.8
Allocation of head office net liabilities (39.6) (53.2) 92.8
Adjusted segment net assets 204.5 275.3 479.8
Aerospace, Defence & EnergyHalf year to 30 June 2011
Western
Europe
£m
North
America
£m
Emerging
markets
£m
Total
ADE
£m
Capital additions 2.2 5.2 7.4
Depreciation and amortisation 5.4 3.8 0.1 9.3
Balance sheet



Assets:



Segment assets 173.4 135.1 4.3 312.8
Liabilities:



Segment liabilities (34.0) (34.4) (0.3) (68.7)
Segment net assets 139.4 100.7 4.0 244.1
Automotive & General Industrial Half year to 30 June 2011
Western
Europe
£m
North
America
£m
Emerging
markets
£m
Total
AGI
£m
Capital additions 9.0 1.0 2.7 12.7
Depreciation and amortisation 11.2 1.5 2.6 15.3
Balance sheet



Assets:



Segment assets 312.6 53.7 77.2 443.5
Other investments 0.5 0.5
Consolidated total assets 313.1 53.7 77.2 444.0
Liabilities:



Segment liabilities (83.2) (13.4) (18.9) (115.5)
Segment net assets 229.9 40.3 58.3 328.5
GroupYear ended 31 December 2011
ADE
£m
AGI
£m
Head
Office and
eliminations
£m
Total
Group
£m
Capital additions 16.1 27.7 2.2 46.0
Depreciation and amortisation 18.5 30.8 1.8 51.1
Impairment losses recognised in income 4.2 4.2
Balance sheet



Assets:



Segment assets 314.0 411.7 32.2 757.9
Other investments 0.8 0.8
Consolidated total assets 314.0 411.7 33.0 758.7
Liabilities:



Segment liabilities (67.3) (128.0) (80.8) (276.1)

246.7 283.7 (47.8) 482.6
Allocation of head office net liabilities (22.2) (25.6) 47.8
Adjusted segment net assets 224.5 258.1 482.6
Aerospace, Defence & EnergyYear ended 31 December 2011
Western
Europe
£m
North
America
£m
Emerging
markets
£m
Total
ADE
£m
Capital additions 5.0 11.1 16.1
Depreciation and amortisation 10.5 7.8 0.2 18.5
Balance sheet



Assets:



Segment assets 171.8 140.1 2.1 314.0
Liabilities:



Segment liabilities (33.6) (33.4) (0.3) (67.3)
Segment net assets 138.2 106.7 1.8 246.7
Automotive & General IndustrialYear ended 31 December 2011
Western
Europe
£m
North
America
£m
Emerging
markets
£m
Total
AGI
£m
Capital additions 17.7 3.9 6.1 27.7
Depreciation and amortisation 22.4 3.3 5.1 30.8
Impairment losses recognised in income 4.2 4.2
Balance sheet



Assets:



Segment assets 292.9 56.0 62.8 411.7
Liabilities:



Segment liabilities (96.3) (15.3) (16.4) (128.0)
Segment net assets 196.6 40.7 46.4 283.7

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