Annual Report and Accounts - Hemscott IR

NOTES TO THE FINANCIAL STATEMENTS
5. Profit continued
c. Adjusted operating margin
General Specialist Plumbing
merchanting Merchanting Consumer & Heating Unallocated Group
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2012 2011 2012 2011 2012 2011 2012 2011 2012 2011 2012 2011
£m £m £m £m £m £m £m £m £m £m £m £m
Revenue 1,456.7 1,443.3 603.6 582.2 1,152.5 1,017.8 1,632.1 1,735.8 - - 4,844.9 4,779.1
Segment result 167.3 164.6 31.3 25.3 65.8 46.0 45.8 63.6 (9.7) (9.0) 300.5 290.5
Amortisation of
intangible assets - - - - 4.9 - 12.5 12.9 - - 17.4 12.9
Exceptional items - 5.9 0.2 0.6 (6.0) - 14.5 3.3 - - 8.7 9.8
Adjusted segment
result 167.3 170.5 31.5 25.9 64.7 46.0 72.8 79.8 (9.7) (9.0) 326.6 313.2
Adjusted operating
margin 11.5% 11.8% 5.2% 4.4% 5.6% 4.5% 4.5% 4.6% - - 6.7% 6.6%
Segmental information is shown in note 6. As outlined in note 6, on 1 January 2012 the Group was reorganised into four divisions, General Merchanting,
Specialist Merchanting, Consumer and Plumbing and Heating.
6. Business and geographical segments
As required by IFRS 8 the operating segments are identified on the basis of internal reports about components of the Group that are regularly reviewed
by the Chief Executive to assess their performance. On 1 January 2012, the Group was reorganised into four divisions, General Merchanting, Specialist
Merchanting, Consumer and Plumbing and Heating. Prior year figures have been restated to reflect the new segments. All four divisions sell building
materials to a wide range of customers, none of which are dominant, and operate almost exclusively in the United Kingdom and consequently no
geographical information is presented.
Segment profit represents the profit earned by each segment without allocation of certain central costs, finance income and costs and income tax
expense. Unallocated segment assets and liabilities comprise financial instruments, current and deferred taxation, cash and borrowings and pension
scheme assets and liabilities.
Inter-segment sales are eliminated. During 2012 and 2011 there were no impairment losses or reversals of impairment losses recognised in profit or loss
or in equity in any of the reportable segments.
2012
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General Specialist Plumbing
M merchanting Merchanting Consumer & Heating Unallocated Eliminations Consolidated
£m £m £m £m £m £m £m
Revenue 1,456.7 603.6 1,152.5 1,632.1 - - 4,844.9
Result
Segment result 167.3 31.3 65.8 45.8 (9.7) - 300.5
Exceptional investment income - - 39.5 - - - 39.5
Finance income - - - - 13.8 - 13.8
Finance costs - - - - (40.5) - (40.5)
Profit before taxation 167.3 31.3 105.3 45.8 (36.4) - 313.3
Taxation - - - - (53.7) - (53.7)
Profit for the year 167.3 31.3 105.3 45.8 (90.1) - 259.6
Segment assets 2,121.7 469.7 1,653.4 1,166.6 179.3 (1,233.5) 4,357.2
Segment liabilities (659.7) (13.7) (415.5) (232.4) (1,961.3) 1,233.5 (2,049.1)
Consolidated net assets 1,462.0 456.0 1,237.9 934.2 (1,782.0) - 2,308.1
Exceptional items - 0.2 (6.0) 14.5 - - 8.7
Capital expenditure 44.2 11.5 17.8 11.0 - - 84.5
Amortisation - - 4.9 12.5 - - 17.4
Depreciation 33.6 8.3 17.8 9.7 - - 69.4
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