The Group's operations are organised and managed separately according to the nature of the services provided, with each segment representing a strategic business unit offering a different package of related services across the Group's markets. A description of the service provision for each segment can be found in the business review.
Before eliminating sales between business units on consolidation, the Group accounts for sales between business units as if they were to a third party at market rates. Revenues are attributed to geographic areas based on the location of the assets producing the revenues.
The tables below present revenue, result and certain asset and liability information for the Group's business segments for the years 2006 and 2005. All operations in 2006 are continuing.
During 2006 the Group changed the management reporting structure of its operations and therefore the disclosure below presents the information under the new structure. The comparatives have been restated accordingly.
| Year ended 31 December 2006 |
| Segment revenue |
HR solutions
£m |
Property consultancy
£m |
Insurance and specialist services
£m |
Financial services
£m |
Integrated services
£m |
ICT and advisory services
£m |
Life & pensions
£m |
Professional services
£m |
Total
£m |
| Total segment revenue |
226.0 |
225.5 |
310.1 |
120.9 |
317.6 |
329.3 |
186.9 |
249.5 |
1,965.8 |
| Inter-segment revenue |
(20.1) |
(26.1) |
(26.9) |
(0.1) |
(16.7) |
(77.0) |
(2.6) |
(57.8) |
(227.3) |
| Third party revenue |
205.9 |
199.4 |
283.2 |
120.8 |
300.9 |
252.3 |
184.3 |
191.7 |
1,738.5 |
| Segment result |
|
|
|
|
|
|
|
|
|
| Result after depreciation |
18.7 |
13.9 |
32.8 |
32.1 |
48.7 |
25.8 |
23.4 |
38.2 |
233.6 |
| Share based payment |
(1.0) |
(1.1) |
(1.5) |
(0.6) |
(2.1) |
(0.7) |
(0.7) |
(0.8) |
(8.5) |
| Intangible amortisation |
(0.2) |
(0.9) |
(2.2) |
(0.9) |
(0.9) |
(0.4) |
(1.2) |
(0.2) |
(6.9) |
| |
17.5 |
11.9 |
29.1 |
30.6 |
45.7 |
24.7 |
21.5 |
37.2 |
218.2 |
| Net finance costs |
|
|
|
|
|
|
|
|
(25.0) |
| Profit before tax and minority interests |
|
|
|
|
|
|
|
|
193.2 |
| Corporation taxation |
|
|
|
|
|
|
|
|
(53.5) |
| Minority interests |
|
|
|
|
|
|
|
|
0.1 |
| Profit after tax and minority interests |
|
|
|
|
|
|
|
|
139.8 |
Other segment information
Assets by segment |
| Assets |
58.8 |
68.1 |
135.7 |
62.7 |
118.0 |
37.2 |
75.3 |
51.5 |
607.3 |
| Intangible assets |
79.2 |
54.3 |
203.7 |
160.1 |
25.1 |
28.4 |
39.4 |
39.8 |
630.0 |
| |
138.0 |
122.4 |
339.4 |
222.8 |
143.1 |
65.6 |
114.7 |
91.3 |
1,237.3 |
| Liabilities |
(29.1) |
(24.0) |
(129.9) |
(60.8) |
(95.7) |
(34.9) |
(37.5) |
(101.0) |
(512.9) |
| Net allocated assets/ (liabilities) |
108.9 |
98.4 |
209.5 |
162.0 |
47.4 |
30.7 |
77.2 |
(9.7) |
724.4 |
| Unallocated assets |
|
|
|
|
|
|
|
|
29.8 |
| Unallocated liabilities |
|
|
|
|
|
|
|
|
(428.4) |
| Total net assets |
|
|
|
|
|
|
|
|
325.8 |
| Capital expenditure |
| Tangible assets |
4.4 |
3.1 |
5.3 |
3.6 |
16.6 |
4.9 |
18.4 |
6.7 |
63.0 |
| Depreciation charge |
1.6 |
2.7 |
4.7 |
2.0 |
19.1 |
3.8 |
4.9 |
3.4 |
42.2 |
| Intangible assets |
0.2 |
2.6 |
6.0 |
20.9 |
0.4 |
7.9 |
0.3 |
11.1 |
49.4 |
| Intangible amortisation |
0.2 |
0.9 |
2.2 |
0.9 |
0.9 |
0.4 |
1.2 |
0.2 |
6.9 |
Unallocated assets include held for sale financial assets and cash in bank. Unallocated liabilities include overdrafts, lease obligations, loan notes, currency and interest rate swaps, bonds and the aggregate pension deficit.
The tables below present revenue by the geographical location of customers, carrying amount of assets and expenditure on tangible and intangible assets by location of those assets.
| Revenue |
United Kingdom
£m |
Non-United Kingdom
£m |
Total
£m |
| Total segment revenue |
1,915.3 |
50.5 |
1,965.8 |
| Inter-segment revenue |
(231.1) |
3.8 |
(227.3) |
| Third party revenue |
1,684.2 |
54.3 |
1,738.5 |
| Other segment information |
| Assets |
581.1 |
26.2 |
607.3 |
| Intangible assets |
612.7 |
17.3 |
630.0 |
| Unallocated assets |
29.8 |
– |
29.8 |
| Total assets |
1,223.6 |
43.5 |
1,267.1 |
| Capital expenditure |
| Tangible assets |
59.4 |
3.6 |
63.0 |
| Intangible assets |
39.6 |
9.8 |
49.4 |
Year ended 31 December 2005
| Segment revenue |
HR solutions
£m |
Property consultancy
£m |
Insurance and specialist services
£m |
Financial services
£m |
Integrated services
£m |
ICT and advisory services
£m |
Life & pensions
£m |
Professional services
£m |
Total
£m |
| Total segment revenue |
216.5 |
200.7 |
271.4 |
99.4 |
287.0 |
191.0 |
117.1 |
190.1 |
1,573.2 |
| Inter-segment revenue |
(14.3) |
(10.2) |
(17.7) |
(1.9) |
(24.3) |
(46.0) |
(2.3) |
(21.0) |
(137.7) |
| Third party revenue |
202.2 |
190.5 |
253.7 |
97.5 |
262.7 |
145.0 |
114.8 |
169.1 |
1,435.5 |
| Segment result |
|
|
|
|
|
|
|
|
|
| Result after depreciation |
15.9 |
17.1 |
25.4 |
24.9 |
43.7 |
15.9 |
14.2 |
33.6 |
190.7 |
| Share based payment |
(0.9) |
(1.0) |
(1.3) |
(0.5) |
(1.9) |
(0.6) |
(0.6) |
(0.8) |
(7.6) |
| Intangible amortisation |
(1.7) |
(0.5) |
(0.9) |
(0.3) |
(0.6) |
– |
(0.5) |
– |
(4.5) |
| Impairment charge |
– |
– |
– |
– |
– |
– |
– |
(12.0) |
(12.0) |
| |
13.3 |
15.6 |
23.2 |
24.1 |
41.2 |
15.3 |
13.1 |
20.8 |
166.6 |
| Finance costs |
|
|
|
|
|
|
|
|
(13.5) |
| Profit before tax and minority interests |
|
|
|
|
|
|
|
|
153.1 |
| Corporation taxation |
|
|
|
|
|
|
|
|
(45.8) |
| Minority interests |
|
|
|
|
|
|
|
|
0.2 |
| Profit after tax and minority interests |
|
|
|
|
|
|
|
|
107.5 |
Other segment information
Assets by segment |
| Assets |
40.4 |
62.0 |
120.6 |
65.1 |
129.0 |
30.5 |
44.0 |
33.4 |
525.0 |
| Intangible assets |
79.2 |
52.6 |
201.0 |
140.2 |
25.6 |
20.9 |
40.3 |
28.9 |
588.7 |
| |
119.6 |
114.6 |
321.6 |
205.3 |
154.6 |
51.4 |
84.3 |
62.3 |
1,113.7 |
| Liabilities |
(22.1) |
(26.6) |
(122.1) |
(56.3) |
(106.1) |
(8.8) |
(21.2) |
(80.3) |
(443.5) |
| Net allocated assets/(liabilities) |
97.5 |
88.0 |
199.5 |
149.0 |
48.5 |
42.6 |
63.1 |
(18.0) |
670.2 |
| Unallocated assets |
|
|
|
|
|
|
|
|
13.6 |
| Unallocated liabilities |
|
|
|
|
|
|
|
|
(286.2) |
| Total net assets |
|
|
|
|
|
|
|
|
397.6 |
| Capital expenditure |
| Tangible assets |
1.8 |
4.1 |
5.3 |
1.8 |
14.0 |
2.9 |
15.1 |
4.7 |
49.7 |
| Depreciation charge |
3.1 |
2.2 |
3.2 |
1.7 |
11.3 |
4.1 |
2.6 |
3.5 |
31.7 |
| Intangible assets |
– |
3.8 |
41.9 |
10.6 |
21.3 |
– |
18.9 |
13.4 |
109.9 |
| Intangible amortisation |
1.7 |
0.5 |
0.9 |
0.3 |
0.6 |
– |
0.5 |
– |
4.5 |
The tables below present revenue by the geographical location of customers, carrying amount of assets and expenditure on tangible and intangible assets by location of those assets.
| Revenue |
United Kingdom
£m |
Non-United Kingdom
£m |
Total
£m |
| Total segment revenue |
1,542.3 |
30.8 |
1,573.1 |
| Inter-segment revenue |
(136.6) |
(1.0) |
(137.6) |
| Third party revenue |
1,405.7 |
29.8 |
1,435.5 |
| Other segment information |
| Assets |
485.0 |
14.7 |
499.7 |
| Intangible assets |
574.9 |
13.8 |
588.7 |
| Unallocated assets |
38.9 |
– |
38.9 |
| Total assets |
1,098.8 |
28.5 |
1,127.3 |
| Capital expenditure |
| Tangible assets |
46.3 |
3.4 |
49.7 |
| Intangible assets |
99.3 |
10.6 |
109.9 |