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.
| Half year to 30 June 2013 |
|---|
| Group | ADE
£m | AGI
£m | Head
Office and
eliminations
£m | Consolidated
£m |
|---|
| Revenue | | | | |
| Total revenue | 133.8 | 182.7 | – | 316.5 |
| Result | | | | |
| Headline operating profit prior to share-based payments and unallocated corporate expenses | 35.5 | 26.5 | – | 62.0 |
| Share-based payments | (1.0) | (1.4) | (1.2) | (3.6) |
| Unallocated corporate expenses | – | – | (6.0) | (6.0) |
| Headline operating profit / (loss) | 34.5 | 25.1 | (7.2) | 52.4 |
| Amortisation of acquired intangible fixed assets | (0.7) | (1.4) | – | (2.1) |
| Segment result | 33.8 | 23.7 | (7.2) | 50.3 |
| Investment revenue | | | | 0.1 |
| Finance costs | | | | (1.9) |
| Profit before taxation | | | | 48.5 |
| Taxation | | | | (12.5) |
| Profit for the period | | | | 36.0 |
Inter-segment sales are not material.
The Group does not rely on any individual major customers.
| Half year to 30 June 2013 |
|---|
| Aerospace, Defence & Energy | Western
Europe
£m | North
America
£m | Emerging
markets
£m | Total
ADE
£m |
|---|
| Revenue | | | | |
| Total revenue | 61.7 | 70.5 | 1.6 | 133.8 |
| Result | | | | |
| Headline operating profit prior to share-based payments | 15.7 | 19.5 | 0.3 | 35.5 |
| Share-based payments | (0.3) | (0.7) | – | (1.0) |
| Headline operating profit | 15.4 | 18.8 | 0.3 | 34.5 |
| Amortisation of acquired intangible fixed assets | (0.2) | (0.5) | – | (0.7) |
| Segment result | 15.2 | 18.3 | 0.3 | 33.8 |
| Half year to 30 June 2013 |
|---|
| Automotive & General Industrial | Western
Europe
£m | North
America
£m | Emerging
markets
£m | Total
AGI
£m |
|---|
| Revenue | | | | |
| Total revenue | 114.9 | 44.8 | 23.0 | 182.7 |
| Result | | | | |
| Headline operating profit prior to share-based payments | 16.6 | 8.4 | 1.5 | 26.5 |
| Share-based payments | (0.9) | (0.4) | (0.1) | (1.4) |
| Headline operating profit | 15.7 | 8.0 | 1.4 | 25.1 |
| Amortisation of acquired intangible fixed assets | (0.1) | (1.2) | (0.1) | (1.4) |
| Segment result | 15.6 | 6.8 | 1.3 | 23.7 |
| Half year to 30 June 2012 (Restated) |
|---|
| Group | ADE
£m | AGI
£m | Head
Office an
eliminations
£m | Consolidated
£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 | – | – | (5.5) | (5.5) |
| Headline operating profit / (loss) | 31.3 | 22.8 | (6.8) | 47.3 |
| 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 | (6.8) | 45.4 |
| Investment revenue | | | | 0.1 |
| Finance costs | | | | (1.6) |
| Profit before taxation | | | | 43.9 |
| Taxation | | | | (11.2) |
| Profit for the period | | | | 32.7 |
| Half year to 30 June 2012 |
|---|
| Aerospace, Defence & Energy | 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 |
| Half year to 30 June 2012 |
|---|
| Automotive & General Industrial | 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 |
| Year ended 31 December 2012 (Restated) |
|---|
| Group | ADE
£m | AGI
£m | Head
Office and
eliminations
£m | Consolidated
£m |
|---|
| Revenue | | | | |
| Total revenue | 260.4 | 327.4 | – | 587.8 |
| Result | | | | |
| Headline operating profit prior to share-based payments and unallocated corporate expenses | 71.4 | 45.1 | – | 116.5 |
| Share-based payments | (1.8) | (1.5) | (2.1) | (5.4) |
| Unallocated corporate expenses | – | – | (13.6) | (13.6) |
| Headline operating profit / (loss) | 69.6 | 43.6 | (15.7) | 97.5 |
| Amortisation of acquired intangible fixed assets | (1.1) | (0.9) | – | (2.0) |
| Profit on disposal of investment | – | – | 2.4 | 2.4 |
| Acquisition costs | (0.8) | (1.7) | – | (2.5) |
| Reorganisation costs | – | – | (2.4) | (2.4) |
| Segment result | 67.7 | 41.0 | (15.7) | 93.0 |
| Investment revenue | | | | 0.2 |
| Finance costs | | | | (3.2) |
| Profit before taxation | | | | 90.0 |
| Taxation | | | | (22.8) |
| Profit for the year | | | | 67.2 |
| Year ended 31 December 2012 |
|---|
| Aerospace, Defence & Energy | Western
Europe
£m | North
America
£m | Emerging
markets
£m | Total
ADE
£m |
|---|
| Revenue | | | | |
| Total revenue | 118.3 | 140.4 | 1.7 | 260.4 |
| Result | | | | |
| Headline operating profit / (loss) prior to share-based payments | 27.9 | 43.7 | (0.2) | 71.4 |
| Share-based payments | (0.5) | (1.3) | – | (1.8) |
| Headline operating profit / (loss) | 27.4 | 42.4 | (0.2) | 69.6 |
| Amortisation of acquired intangible fixed assets | (0.3) | (0.8) | – | (1.1) |
| Acquisition costs | – | (0.8) | – | (0.8) |
| Segment result | 27.1 | 40.8 | (0.2) | 67.7 |
| Year ended 31 December 2012 |
|---|
| Automotive & General Industrial | Western
Europe
£m | North
America
£m | Emerging
markets
£m | Total
AGI
£m |
|---|
| Revenue | | | | |
| Total revenue | 219.2 | 61.8 | 46.4 | 327.4 |
| Result | | | | |
| Headline operating profit prior to share-based payments | 30.3 | 13.1 | 1.7 | 45.1 |
| Share-based payments | (1.0) | (0.5) | – | (1.5) |
| Headline operating profit | 29.3 | 12.6 | 1.7 | 43.6 |
| Amortisation of acquired intangible fixed assets | (0.2) | (0.5) | (0.2) | (0.9) |
| Acquisition costs | – | (1.7) | – | (1.7) |
| Segment result | 29.1 | 10.4 | 1.5 | 41.0 |