Notes to the Accounts For the year ended 31 December 2007

Previous page | Next page

2. Segment reporting

The consolidated entity operates in one business segment, being that of recruitment services, and this is the Group's primary segment. As a result, no additional business segment information is required to be provided. The Group's secondary segment is geography. The segment results by geography are shown below:

(a) Revenue, gross profit and operating profit by geographic region

Revenue Gross Profit Operating Profit
    2007
£'000
2006
£'000
2007
£'000
2006
£'000
2007
£'000
2006
£'000
EMEA   321,102 222,993 196,421 126,577 63,013 34,171
United Kingdom   360,395 312,408 186,024 155,811 59,412 44,270
Asia Pacific Australia 72,020 63,208 32,855 26,017 9,899 8,982
  Other 25,741 20,370 24,366 18,944 10,922 8,077
  Total 97,761 83,578 57,221 44,961 20,821 17,059
Americas   52,382 30,081 38,428 21,468 6,186 1,867
    831,640 649,060 478,094 348,817 149,432 97,367

The above analysis by destination is not materially different to analysis by origin.

The analysis below is of the carrying amount of segment assets, liabilities and capital expenditure. Segment assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. The individual geographic segments exclude income tax assets and liabilities. Capital expenditure comprises additions to property, plant and equipment, motor vehicles and computer hardware/software.

(b) Segment assets, liabilities and capital expenditure by geographic region

Total Assets Total Liabilities Capital Expenditure
    2007
£'000
2006
£'000
2007
£'000
2006
£'000
2007
£'000
2006
£'000
EMEA   165,719 91,281 58,325 39,734 5,934 3,899
United Kingdom   89,679 88,364 114,622 73,228 5,043 3,113
Asia Pacific Australia 22,899 14,592 7,103 5,457 436 958
  Other 15,672 10,165 2,738 2,251 303 386
  Total 38,571 24,757 9,841 7,708 739 1,344
Americas   20,575 11,520 6,047 3,370 1,790 1,548
Segment assets/liabilities/capital expenditure 314,544 215,922 188,835 124,040 13,506 9,904
Income tax   213 17,859 11,704    
    314,544 216,135 206,694 135,744    

The above table is shown gross of the effect of the multi-currency notional cash pool. Were the cash pool to be shown on a net basis, this would reduce both the total liabilities in the UK and the total assets in EMEA by £29.5m each. Further information on the notional cash pool is provided in Note 21.

(c) Revenue and gross profit by discipline

Revenue Gross Profit
  2007
£'000
2006
£'000
2007
£'000
2006
£'000
Finance and Accounting 496,506 408,250 258,667 202,542
Marketing, Sales and Retail 119,103 100,153 89,910 67,863
Legal, Technology, HR, Secretarial and Other 134,908 96,595 73,835 46,655
Engineering, Property & Construction, Procurement & Supply Chain 81,123 44,062 55,682 31,757
  831,640 649,060 478,094 348,817

(d) Revenue and gross profit generated from permanent and temporary placements

Revenue Gross Profit
  2007 £'000 2006 £'000 2007 £'000 2006 £'000
Permanent 392,583 276,346 371,998 261,000
Temporary 439,057 372,714 106,096 87,817
  831,640 649,060 478,094 348,817

The above analyses in notes (a) operating profit by geographic region, (b) segment liabilities by geographic region, (c) revenue and gross profit by discipline (being the professions of candidates placed) and (d) revenue and gross profit generated from permanent and temporary placements have been included as additional disclosure over and above the requirements of IAS14 “Segment Reporting”.

Back to Top