Halma

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Half Year Report 2012/13

2 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 market characteristics. These segments are consistent with the internal reporting as reviewed by the Chief Executive Officer.

These reportable segments remain unchanged from the 31 March 2012 consolidated accounts.

Segment revenue and results

 

Revenue (all continuing operations)

 

Unaudited
26 weeks to 29 September 2012
£000

Unaudited
26 weeks to
1 October
2011
£000

Audited
52 weeks to
31 March
2012
£000

Health and Analysis

135,157

121,070

253,647

Infrastructure Sensors

100,509

101,102

204,280

Industrial Safety

62,535

58,007

122,240

Inter-segmental sales

(123)

(182)

(284)

Revenue for the period

298,078

279,997

579,883

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)

 

Unaudited
26 weeks to
29 September
2012

£000

Unaudited
 26 weeks to
1 October
2011
£000

Audited
52 weeks to
31 March
2012
£000

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

 

 

 

Health and Analysis

30,886

27,953

57,848

Infrastructure Sensors

18,907

19,364

39,099

Industrial Safety

15,335

13,596

29,226

 

65,128

60,913

126,173

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

 

 

 

Health and Analysis

24,416

22,024

49,779

Infrastructure Sensors

18,907

19,364

39,276

Industrial Safety

23,222

13,307

28,627

Segment profit

66,545

54,695

117,682

Central administration costs

(2,548)

(2,849)

(4,266)

Net finance expense

(1,802)

(563)

(1,442)

Group profit before taxation

62,195

51,283

111,974

Taxation

(12,590)

(11,646)

(25,260)

Profit for the period

49,605

39,637

86,714

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 adjustments to contingent purchase 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, movements on contingent consideration (including
any arising from foreign exchange revaluation) and profit on disposal of continuing operations are analysed as follows:

 

 

For the 26 weeks ended 29 September 2012

 

 

Acquisition costs

 

 

 

 

Amortisation of acquired intangible assets

£000

Transaction costs

£000

Adjustments to contingent consideration

£000

Total amortisation charge and acquisition costs

£000

Disposal of continuing operations (note 11)

£000

Total

£000

Health and Analysis

(6,128)

(1,468)

1,126

(6,470)

(6,470)

Infrastructure Sensors

– 

Industrial Safety

(301)

(301)

8,188

7,887

Total Group

(6,429)

(1,468)

1,126

(6,771)

8,188

1,417

The transaction costs mainly arose on the acquisitions in note 10 of Accutome, Inc. (£225,000), Sensorex Inc. (£295,000) and SunTech Medical Group Limited (£939,000).

 

 

For the 26 weeks ended 1 October 2011

 

 

Acquisition costs

 

 

 

 

Amortisation
of acquired intangible assets
£000

Transaction costs
£000

Adjustments
to contingent consideration
£000

Total amortisation charge and acquisition costs
£000

Disposal of continuing operations
(note 11)
£000

Total
£000

Health and Analysis

(4,901)

(66)

(962)

(5,929)

(5,929)

Infrastructure Sensors

Industrial Safety

(244)

(45)

(289)

(289)

Total Group

(5,145)

(111)

(962)

(6,218)

(6,218)

 

 

For the 52 weeks ended 31 March 2012

 

 

Acquisition costs

 

 

 

 

Amortisation
of acquired intangible assets
£000

Transaction costs
£000

Adjustments
to contingent consideration
£000

Total amortisation charge and acquisition costs
£000

Disposal of continuing operations
(note 11)
£000

Total
£000

Health and Analysis

(9,804)

(667)

(1,141)

(11,612)

3,543

(8,069)

Infrastructure Sensors

– 

177

177

177

Industrial Safety

(548)

(51)

(599)

(599)

Total Group

(10,352)

(718)

(964)

(12,034)

3,543

(8,491)

The total assets of the Health and Analysis sector were £385,299,000 at 29 September 2012 (£332,051,000 at 1 October 2011; £317,280,000 at 31 March 2012), the increase in the period being primarily due to additional goodwill and acquired intangible assets arising from the three acquisitions (see note 10). The other two sectors' total assets have not been disclosed as there
have been no material changes to those disclosed in the 2012 Annual Report.

Geographical information

The Group's revenue from external customers (by location of customer) is as follows:

 

Revenue by destination

 

Unaudited
26 weeks to 29 September
2012
£000

Unaudited
26 weeks to
1 October
 2011
£000

Audited
52 weeks to
31 March
2012
£000

United States of America

93,491

78,598

161,951

Mainland Europe

73,306

75,264

154,428

United Kingdom

57,213

60,638

125,613

Asia Pacific and Australasia

48,826

41,611

87,277

Africa, Near and Middle East

14,240

13,024

27,750

Other countries

11,002

10,862

22,864

Group revenue

298,078

279,997

579,883