Full Annual Report - Inchcape

Financial statements
Notes to the accounts
1 Segmental analysis
From 1 January 2009, the Group has adopted IFRS 8 ‘Operating segments’. IFRS 8 replaced IAS 14 ‘Segment reporting’.
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 operating decision maker in order to assess their performance and to allocate resources to the segments.
These operating segments are then aggregated into reporting segments to combine those with similar characteristics. In contrast,
the predecessor standard required the Group to identify two sets of segments (business and geographical), using a risks and
rewards approach.
The Group has determined that the chief operating decision maker is the Executive Committee.
Under IFRS 8, the only change for the Group is that the businesses previously reported within the Rest of World segment under IAS 14 are
reported within the other segments that best match the characteristics of each individual business. Comparative information has been
restated accordingly.
Emerging markets are those countries in which the Group operates that have started to grow but have yet to reach a mature stage
of development and accordingly were in, and are expected to return to, the growth phase of the development cycle. These currently
comprise China, the Balkans, the Baltics, Poland, South America and Africa.
The Group’s reported segments are based on the location of the Group’s assets. Revenue earned from sales is disclosed by origin and
is not materially different from revenue by destination.
Transfer prices between segments are set on an arm’s length basis.
Distribution comprises Vertically Integrated Retail businesses as well as Financial Services and other businesses.
2009
Australasia
£m
Europe
£m
North Asia
£m
South Asia
£m
United
Kingdom
£m
Russia and
Emerging
Markets
£m
Distribution
Total
Distribution
£m
Revenue
Total revenue 607.4 947.8 312.2 548.2 30.0 300.1 2,745.7
Inter-segment revenue (129.0) (146.0) – – – (43.7) (318.7)
Revenue from third parties 478.4 801.8 312.2 548.2 30.0 256.4 2,427.0
Results
Segment result 26.7 30.2 19.9 55.9 3.9 1.0 137.6
Exceptional items – (0.2) – – – (3.9) (4.1)
Operating profit after exceptional items 26.7 30.0 19.9 55.9 3.9 (2.9) 133.5
Share of profit / (loss) after tax of joint ventures
and associates – 2.0 – – – – 2.0
Profit before finance and tax 26.7 32.0 19.9 55.9 3.9 (2.9) 135.5
Finance income
Finance costs
Profit before tax
Tax
Profit for the year
90
Inchcape plc ¦ Annual Report and Accounts 2009