Annual Report 2010 - Leeden Limited

A Stronger Leeden in Asia.Notes to the Financial Statementsfor the Financial Year ended 31 December 201040. Segment informationReporting formatFor management purposes, the Group is organised into business units based on their products and services and isorganised into 2 main operating segments, namely:(a)(b)Manufacturing and distribution of welding, safety and gas products; andproperty investment/development and other operationsSegment results, assets and liabilities include items directly attributable to a segment as well as those that can beallocated on a reasonable basis. Except as indicated above, no operating segments have been aggregated to form theabove reportable operating segments.Management monitors the operating results of its business units separately for the purpose of making decisions aboutresource allocation and performance assessment. Segment performance is evaluated based on operating profit or losswhich in certain respects, as explained in the table below, is measured differently from operating profit or loss in theconsolidated financial statements. Group financing (including finance costs) and income taxes are managed on a groupbasis and are not allocated to operating segments.Transfer prices between operating segments are on an arm’s length basis in a manner similar to transactions with thirdparties.Distribution of welding,gas and safety products Property and others Consolidated2010 2009 2010 2009 2010 2009$’000 $’000 $’000 $’000 $’000 $’000Segment revenueSales to external customers 177,066 168,998 14,404 17,150 191,470 186,148Segment results 15,285 14,590 1,528 4,436 16,813 19,026Interest expenses (1,921) (2,016)Share of profit in associated and jointventure companies 191 218Profit before taxation 15,083 17,228Tax expense (3,244) (3,334)Net profit after taxation 11,839 13,894Segment assets 187,676 168,781 20,240 31,530 207,916 200,311Segment liabilities 97,206 96,670 3,031 5,869 100,237 102,539Other segment informationCapital expenditure 15,270 10,430 90 351 15,360 10,781Depreciation 5,931 5,451 731 709 6,662 6,160Amortisation of intangible assets 176 176 – – 176 176Other non-cash expenses 70 3,371 – – 70 3,371104