Notes to the Financial Statements

Notes to the Financial Statements31 December 2006 continued2. Summary of significant accounting policies continued(o) Share-based paymentsThe Group issues equity-settled share-based payments to certain employees. Equity-settled sharebasedpayments are measured at fair value (excluding the effect of non market-based vestingconditions) at the date of grant. The fair value determined at the date of grant of the equity-settledshare-based payments is expensed on a straight-line basis over the vesting period, based on theGroup’s estimate of the shares that will eventually vest.Fair value is measured using the Black-Scholes option pricing model. The expected life used in themodel has been adjusted, based on management’s best estimate, for the effects of nontransferability,any exercise restrictions and behavioural considerations.3. Segment informationPrimary reporting format – business segmentsAt 31 December 2006, the Group is organised into two main business segments: (i) manufactureand sale of de-icing products, and (ii) manufacture and sale of oilfield process chemicals.Other Group operations mainly comprise the sale of food additives, sale of semi-finished products,provision of production facilities and corporate activities. These do not constitute separatelyreportable segments.28The segments results for the period ended 31 December 2006 are as follows:OilfieldDe-icing processproducts chemicals Other Total$’000 $’000 $’000 $’000Revenue 13,570 9,170 2,218 24,958Operating profit 3,429 1,573 (979) 4,023Finance costs and netforeign exchange (90)Profit before taxation 3,933Taxation (1,132)Profit for the year 2,801ZiRAX Annual Report & Accounts 2006