4 Segmental information
The group's primary reporting format is business segments and its secondary format is geographical segments. The companies within each business segment, together with the significant products made by each, are detailed here.
The business segments for which information has been included in these accounts are different from those disclosed in prior years. The new disclosures for business segments reflect the manner in which the business is currently managed by the Board of Directors. Prior year comparatives have been restated accordingly.
| a) Business segments | ||||||||||||||||
| Segment revenue | Inter-segment revenue | External customer revenue |
Segment result | |||||||||||||
| 2007 £m |
2006 Restated £m |
2007 £m |
2006 Restated £m |
2007 £m |
2006 Restated £m |
2007 £m |
2006 Restated £m |
|||||||||
| Materials Analysis | 214.1 | 206.0 | (0.3) | (0.3) | 213.8 | 205.7 | 33.5 | 28.2 | ||||||||
| Test and Measurement | 208.1 | 202.2 | (0.6) | (0.7) | 207.5 | 201.5 | 26.0 | 18.4 | ||||||||
| In-line Instrumentation | 209.3 | 235.2 | (0.5) | (0.7) | 208.8 | 234.5 | 34.8 | 28.1 | ||||||||
| Industrial Controls | 38.3 | 42.8 | – | – | 38.3 | 42.8 | 8.6 | 8.0 | ||||||||
| Eliminate inter-segment sales | (1.4) | (1.7) | 1.4 | 1.7 | – | – | – | – | ||||||||
| Total continuing operations | 668.4 | 684.5 | – | – | 668.4 | 684.5 | 102.9 | 82.7 | ||||||||
| Profit on disposal of businesses | 19.0 | 9.5 | ||||||||||||||
| Financial income | 9.6 | 9.0 | ||||||||||||||
| Finance costs | (13.4) | (15.6) | ||||||||||||||
| Profit before tax | 118.1 | 85.6 | ||||||||||||||
| Tax | (31.9) | (24.2) | ||||||||||||||
| Profit after tax | 86.2 | 61.4 | ||||||||||||||
| Inter-segment pricing is on an arm's length basis. Segments are presented on the basis of actual inter-segment charges made. As noted in Note 28, profit on disposal of businesses of £19.0m (2006: £9.5m) relates to the In-line Instrumentation segment (2006: Electronic Controls segment). | ||||||||||||||||
| Segment assets | Segment liabilities | |||||||||||||||
| 2007 £m |
2006 Restated £m |
2007 £m |
2006 Restated £m |
|||||||||||||
| Materials Analysis | 199.8 | 184.6 | (67.8) | (59.1) | ||||||||||||
| Test and Measurement | 191.9 | 179.8 | (53.6) | (50.6) | ||||||||||||
| In-line Instrumentation | 169.2 | 167.0 | (46.1) | (45.4) | ||||||||||||
| Industrial Controls | 9.8 | 9.9 | (4.1) | (5.2) | ||||||||||||
| Total segment assets and liabilities | 570.7 | 541.3 | (171.6) | (160.3) | ||||||||||||
| Cash and borrowings | 51.4 | 51.0 | (112.5) | (112.9) | ||||||||||||
| Derivative financial instruments | 0.1 | 1.3 | (16.1) | (12.8) | ||||||||||||
| Net pension liability | – | – | (11.1) | (18.8) | ||||||||||||
| Taxation (including amounts disclosed within assets and liabilities held for sale) | 25.7 | 39.7 | (33.8) | (34.4) | ||||||||||||
| Consolidated total assets and liabilities | 647.9 | 633.3 | (345.1) | (339.2) | ||||||||||||
| Additions to non-current assets |
Depreciation and amortisation |
Impairment charges | ||||||||||||||
| 2007 £m |
2006 Restated £m |
2007 £m |
2006 Restated £m |
2007 £m |
2006 £m |
|||||||||||
| Materials Analysis | 4.2 | 6.1 | 4.3 | 3.6 | – | – | ||||||||||
| Test and Measurement | 3.5 | 5.8 | 6.3 | 6.8 | – | – | ||||||||||
| In-line Instrumentation | 10.8 | 5.5 | 4.2 | 4.4 | – | – | ||||||||||
| Industrial Controls | 0.4 | 0.3 | 0.3 | 0.3 | – | – | ||||||||||
| 18.9 | 17.7 | 15.1 | 15.1 | – | – | |||||||||||
| b) Geographical segments | ||||||||||||||||
| The group's business operations are each located in several geographical locations, and sell on to external customers in all parts of the world. The following is an analysis of revenue by geographical destination. | ||||||||||||||||
| Total | ||||||||||||||||
| Materials Analysis £m |
Test and Measurement £m |
In-line Instrumentation £m |
Industrial Controls £m |
2007 £m |
2006 £m |
|||||||||||
| UK | 9.4 | 8.6 | 10.2 | 1.5 | 29.7 | 36.3 | ||||||||||
| Continental Europe | 66.2 | 112.4 | 70.7 | 7.2 | 256.5 | 253.5 | ||||||||||
| North America | 50.0 | 23.5 | 58.9 | 24.2 | 156.6 | 176.4 | ||||||||||
| Japan | 18.9 | 16.5 | 17.9 | 0.4 | 53.7 | 55.8 | ||||||||||
| China | 18.7 | 14.4 | 21.2 | 1.1 | 55.4 | 50.1 | ||||||||||
| Rest of Asia Pacific | 33.9 | 19.0 | 17.3 | 3.4 | 73.6 | 76.9 | ||||||||||
| Rest of the world | 16.7 | 13.1 | 12.6 | 0.5 | 42.9 | 35.5 | ||||||||||
| 213.8 | 207.5 | 208.8 | 38.3 | 668.4 | 684.5 | |||||||||||
| The following is an analysis of the carrying amount of segment assets, and additions to property, plant and equipment and intangible assets, analysed by the geographical area in which the assets are located. | ||||||||||||||||
| Carrying amount of segment assets |
Additions to non-current assets |
|||||||||||||||
| 2007 £m |
2006 £m |
2007 £m |
2006 £m |
|||||||||||||
| UK | 58.4 | 63.1 | 3.9 | 1.8 | ||||||||||||
| Continental Europe | 385.6 | 355.6 | 5.5 | 5.9 | ||||||||||||
| North America | 84.5 | 84.2 | 7.8 | 7.7 | ||||||||||||
| Japan | 15.0 | 13.9 | 0.1 | 0.1 | ||||||||||||
| China | 10.5 | 10.1 | 0.6 | 0.3 | ||||||||||||
| Rest of Asia Pacific | 12.0 | 11.6 | 0.9 | 1.3 | ||||||||||||
| Rest of the world | 4.7 | 2.8 | 0.1 | 0.6 | ||||||||||||
| 570.7 | 541.3 | 18.9 | 17.7 | |||||||||||||