Halma

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Annual Report and Accounts 2012

1 Segmental Analysis

Sector Analysis

The Group has three main reportable segments (Health and Analysis, Infrastructure Sensors, and Industrial Safety), which are defined by markets rather than product type. Each segment includes businesses with similar operating and marketing characteristics. These segments are consistent with the internal reporting as reviewed by the Chief Executive Officer.

Segment Revenue and Results

 

Revenue (all continuing operations)

 

52 weeks to

31 March 2012

£000

52 weeks to

2 April

2011

£000

Health and Analysis

253,647

218,330

Infrastructure Sensors

204,280

197,209

Industrial Safety

122,240

103,058

Inter-segmental sales

(284)

(169)

Revenue for the year

579,883

518,428

Inter-segmental sales are charged at prevailing market prices and have not been disclosed separately by segment as they are
not considered material. The Group does not analyse revenue by product group and has no material revenue derived from the rendering of services.

 

Profit (all continuing operations)

 

52 weeks to

31 March 2012

£000

52 weeks

to 2 April

2011

£000

Segment profit before allocation of amortisation of acquired intangible assets, acquisition costs and profit on disposal of continuing operations

 

 

Health and Analysis

57,848

46,108

Infrastructure Sensors

39,099

39,023

Industrial Safety

29,226

24,435

 

126,173

109,566

Segment profit after allocation of amortisation of acquired intangible assets, acquisition costs and profit on disposal of continuing operations

 

 

Health and Analysis

49,779

40,170

Infrastructure Sensors

39,276

38,981

Industrial Safety

28,627

24,156

Segment profit

117,682

103,307

Central administration costs

(4,266)

(3,917)

Net finance expense

(1,442)

(1,098)

Group profit before taxation

111,974

98,292

Taxation

(25,260)

(25,858)

Profit for the year

86,714

72,434

The accounting policies of the reportable segments are the same as the Group’s accounting policies. For acquisitions after 3 April 2010, acquisition transaction costs and movement on contingent consideration are recognised in the Consolidated Income Statement. Segment profit, before these acquisition costs, the amortisation of acquired intangible assets and the profit on disposal of continuing operations is disclosed separately above as this is the measure reported to the Chief Executive Officer for the purpose of allocation of resources and assessment of segment performance.

The amortisation of acquired intangible assets, acquisition transaction costs, movement on contingent consideration (including any arising from foreign exchange revaluation) and profit on disposal of continuing operations are analysed as follows:

 

 

 

 

 

2012

 

 

Acquisition costs

 

 

 

Amortisation of acquired intangibles

Transaction costs

Adjustments to contingent consideration

Disposal of continuing operations (note 29)

Total

Health and Analysis

(9,804)

(667)

(1,141)

3,543

(8,069)

Infrastructure Sensors

177

177

Industrial Safety

(548)

(51)

(599)

Total Group

(10,352)

(718)

(964)

3,543

(8,491)

The transaction costs mainly arose on the acquisitions in note 24 of SunTech Medical Group Limited (£225,000), Kirk Key Interlock Company LLC. (£51,000), Avo Photonics, Inc. (£55,000), Accutome, Inc. (£100,000) and Sensorex Inc. (£141,000).

 

 

 

 

 

2011

 

 

Acquisition costs

 

 

 

Amortisation of acquired intangibles

Transaction costs

Adjustments to contingent consideration

Disposal of continuing operations

Total

Health and Analysis

(4,481)

(1,226)

(231)

(5,938)

Infrastructure Sensors

(42)

(42)

Industrial Safety

(279)

(279)

Total Group

(4,760)

(1,268)

(231)

(6,259)

Segment assets and liabilities

 

Assets

Liabilities

Before goodwill, interests in associates and acquired intangible assets

are allocated to specific segment assets/liabilities

2012

£000

2011

£000

2012

£000

2011

£000

Health and Analysis

94,933

90,854

31,018

33,733

Infrastructure Sensors

77,261

77,051

29,304

28,702

Industrial Safety

49,376

45,300

20,513

17,967

Total segment assets/liabilities excluding goodwill, interests in associates and acquired intangible assets

221,570

213,205

80,835

80,402

Goodwill

267,471

259,954

Interests in associates

1,968

1,989

Acquired intangible assets

61,082

60,851

Total segment assets/liabilities including goodwill, interests in associates and acquired intangible assets

552,091

535,999

80,835

80,402

 

 

Assets

Liabilities

After goodwill, interests in associates and acquired intangible assets

are allocated to specific segment assets/liabilities

2012

£000

2011

£000

2012

£000

2011

£000

Health and Analysis

317,280

310,219

31,018

33,733

Infrastructure Sensors

157,577

159,622

29,304

28,702

Industrial Safety

77,234

66,158

20,513

17,967

Total segment assets/liabilities including goodwill and acquired intangible assets

552,091

535,999

80,835

80,402

Cash and cash equivalents/borrowings

45,305

42,610

64,014

79,688

Derivative financial instruments

469

327

126

858

Other unallocated assets/liabilities

47,318

45,337

102,096

107,940

Total Group

645,183

624,273

247,071

268,888

Segment assets and liabilities, excluding the allocation of goodwill, interests in associates and acquired intangible assets, have been disclosed separately above as this is the measure reported to the Chief Executive Officer for the purpose of monitoring segment performance and allocating resources between segments. Other unallocated assets include land and buildings and tax assets, and unallocated liabilities include contingent purchase consideration, retirement benefit provisions and tax liabilities.

Other segment information

 

Additions to non-current assets

Depreciation and amortisation

 

2012

£000

2011

£000

2012

£000

2011

£000

Health and Analysis

21,934

120,593

16,987

11,221

Infrastructure Sensors

7,146

6,733

5,494

5,852

Industrial Safety

12,813

3,576

4,522

4,034

Total segment additions/depreciation and amortisation

41,893

130,902

27,003

21,107

Unallocated

979

2,324

666

623

Total Group

42,872

133,226

27,669

21,730

Non-current asset additions comprise acquired and purchased goodwill, intangible assets and property, plant and equipment.

There were no impairment losses incurred during the year (2011: £nil).

Geographical information

The Group's revenue from external customers (by location of customer) and its non-current assets by geographical location are detailed below:

 

Revenue by destination

Non-current assets

 

2012

£000

2011

£000

2012

£000

2011

£000

United States of America

161,951

150,280

40,021

38,977

Mainland Europe

154,428

138,313

26,682

26,296

United Kingdom

125,613

106,131

345,480

336,673

Asia Pacific and Australasia

87,277

76,207

3,792

3,378

Africa, Near and Middle East

27,750

28,756

Other countries

22,864

18,741

65

 

579,883

518,428

416,040

405,324

Non-current assets comprise goodwill, other intangible assets, investments in associates and property, plant and equipment.

Information about major customers

The Group had no revenue from a single customer, which accounts for more than 2% of the Group's revenue.