Advanced Computer Software Group plc Annual report 2013

4 RevenueRevenue for the Group was generated from subsidiaries and almost all of the revenue is from customers based inthe UK. Revenue can be split into recurring (managed services and software and hardware support contracts) andnon-recurring (services and sale of software licences and hardware). The split of revenues for the year to 28 February2013 is shown below.2013Continuingoperations£’000Continuingoperations£’0002012Discontinuedoperations£’000Recurring revenues 69,454 56,140 1,469 57,609Non-recurring revenues 51,460 42,060 2,156 44,216120,914 98,200 3,625 101,8255 SegmentsDuring the year the Group had three reportable segments as described below, which were the Group’s divisions.These divisions represent the lower level of operating segment, excluding any aggregation, which is consistent withthe internal reporting to the Board. The cash generating units (CGU) used for the goodwill impairment test in note 12is in line with the reported segments.The divisions offered differing solutions and were managed separately as they required different resources andstrategies. For each of the divisions, the Group’s Board reviewed internal management reports on a monthly basis,which showed adjusted EBITDA performance of each division. The following summary describes the operations ofeach division:Total£’000Overview Business review Governance Financials> > Health & Care: provides clinical software solutions, including patient care management and clinical supportsoftware to urgent and unscheduled healthcare providers and social care providers;> > 365 Managed Services: provides hosting, cloud-enablement and managed IT services to a wide range ofcustomers in both the public and private sectors;> > Business Solutions: provides a complete suite of back office applications including financial management, payroll,human capital management, e-procurement and document management to businesses in the retail, health & care,banking, leisure and other commercial sectors.All three segments were reported in the prior year. In the year under review, the acquisition of Serco Learning andATMS augmented the size of the Business Solutions segment and the acquisition of Strand and Fabric augmentedthe size of Health & Care and 365 Managed Services respectively.‘Unallocated items’ represents the elimination of the inter-segment sales and shows the non-segmental Groupexpenses incurred during the period.Information regarding the result of each reportable segment is included below which is consistent with the monthlyinformation provided to the Board.Advanced Computer Software Group plcAnnual Report 201347