Notes 1-5
- 1. General information
- 2. Segment information
- 3. Operating costs
- 4. Share of results of associates
- 5. Our people
2. Segment information
The Group is a leading worldwide communications services organisation offering national and multinational clients a comprehensive range of communications services.
For management purposes, the Group is currently organised into four operating segments – Advertising and Media Investment Management; Information, Insight & Consultancy; Public Relations & Public Affairs; and Branding & Identity, Healthcare and Specialist Communications. These disciplines are the basis on which the Group reports its primary information. The Group’s operations are located in North America; the UK; Continental Europe; and Asia Pacific, Latin America, Africa & Middle East and the Group’s performance has historically been linked with the economic performance of these regions. These geographic divisions are the basis on which the Group reports its secondary information.
Operating sectors
Segment information about these businesses is presented below:
Revenue1 |
Operating profit |
Share of result of associates |
Profit before interest and taxation |
Finance income |
Finance costs |
Profit before taxation |
Taxation |
Profit for the year |
|
|---|---|---|---|---|---|---|---|---|---|
| £m | £m | £m | £m | £m | £m | £m | £m | £m | |
| 2008 | |||||||||
| Advertising and Media Investment Management |
3,329.5 |
501.0 |
32.7 |
533.7 |
|||||
| Information, Insight & Consultancy | 1,301.8 | 119.3 | 5.4 | 124.7 | |||||
| Public Relations & Public Affairs | 752.3 | 117.9 | 4.1 | 122.0 | |||||
| Branding & Identity, Healthcare and Specialist Communications |
2,093.3 | 137.8 | 3.8 | 141.6 | |||||
| 7,476.9 | 876.0 | 46.0 | 922.0 | 169.6 | (344.8) | 746.8 | (232.9) | 513.9 | |
| 2007 | |||||||||
| Advertising and Media Investment Management |
2,871.3 | 384.4 | 28.1 | 412.5 | |||||
| Information, Insight & Consultancy | 905.4 | 99.2 | 3.9 | 103.1 | |||||
| Public Relations & Public Affairs | 641.4 | 101.7 | 2.1 | 103.8 | |||||
| Branding & Identity, Healthcare and Specialist Communications |
1,767.8 | 219.4 | 7.3 | 226.7 | |||||
| 6,185.9 | 804.7 | 41.4 | 846.1 | 139.4 | (266.1) | 719.4 | (204.3) | 515.1 | |
| 2006 | |||||||||
| Advertising and Media Investment Management |
2,806.9 | 365.2 | 21.9 | 387.1 | |||||
| Information, Insight & Consultancy | 892.9 | 89.0 | 1.9 | 90.9 | |||||
| Public Relations & Public Affairs | 595.7 | 83.5 | 3.2 | 86.7 | |||||
| Branding & Identity, Healthcare and Specialist Communications |
1,612.3 | 203.9 | 14.1 | 218.0 | |||||
| 5,907.8 | 741.6 | 41.1 | 782.7 | 111.0 | (211.7) | 682.0 | (199.4) | 482.6 | |
Note
- 1
- Intersegment sales have not been separately disclosed as they are not material.
Headline PBIT1 |
Headline PBIT margin |
Headline PBIT1 |
Headline PBIT margin |
Headline PBIT1 |
Headline PBIT margin |
|
|---|---|---|---|---|---|---|
| 2008 £m |
2008 % |
2007 £m |
2007 % |
2006 £m |
2006 % |
|
| Advertising and Media Investment Management | 581.3 | 17.5 | 466.9 | 16.3 | 443.7 | 15.8 |
| Information, Insight & Consultancy | 147.6 | 11.3 | 104.3 | 11.5 | 98.7 | 11.1 |
| Public Relations & Public Affairs | 124.9 | 16.6 | 106.5 | 16.6 | 89.5 | 15.0 |
| Branding & Identity, Healthcare and Specialist Communications | 264.4 | 12.6 | 250.3 | 14.2 | 227.1 | 14.1 |
| 1,118.2 | 15.0 | 928.0 | 15.0 | 859.0 | 14.5 |
Note
- 1
- Headline PBIT is defined in note 31.
Other information |
Share-based payments |
Goodwill additions |
Acquired intangibles additions |
Capital additions1 |
Depreciation and amortisation |
Goodwill impairment & write-downs |
Interest in associates |
|---|---|---|---|---|---|---|---|
| £m | £m | £m | £m | £m | £m | £m | |
| 2008 | |||||||
| Advertising and Media Investment Management | 33.3 | 90.0 | 14.0 | 93.3 | 117.8 | 9.1 | 474.9 |
| Information, Insight & Consultancy | 7.5 | 1,179.4 | 715.6 | 50.9 | 43.5 | 3.0 | 96.7 |
| Public Relations & Public Affairs | 4.3 | – | 0.5 | 13.3 | 16.0 | – | 59.6 |
| Branding & Identity, Healthcare and Specialist Communications | 17.2 | 81.7 | – | 63.1 | 74.1 | 73.5 | 83.1 |
| 62.3 | 1,351.1 | 730.1 | 220.6 | 251.4 | 85.6 | 714.3 | |
| 2007 | |||||||
| Advertising and Media Investment Management | 35.0 | 56.8 | 3.9 | 96.5 | 100.0 | 33.2 | 328.9 |
| Information, Insight & Consultancy | 7.4 | 39.3 | 2.3 | 19.9 | 18.1 | – | 90.8 |
| Public Relations & Public Affairs | 4.3 | 35.9 | – | 10.7 | 14.1 | 0.6 | 59.0 |
| Branding & Identity, Healthcare and Specialist Communications | 15.7 | 471.7 | 79.5 | 45.2 | 52.5 | 12.0 | 61.4 |
| 62.4 | 603.7 | 85.7 | 172.3 | 184.7 | 45.8 | 540.1 | |
| 2006 | |||||||
| Advertising and Media Investment Management | 43.7 | 60.9 | 4.5 | 105.8 | 114.3 | 28.7 | 257.1 |
| Information, Insight & Consultancy | 7.7 | 12.9 | 0.4 | 19.5 | 17.2 | 5.6 | 83.1 |
| Public Relations & Public Affairs | 4.7 | 55.5 | 6.0 | 15.1 | 13.8 | 0.9 | 18.7 |
| Branding & Identity, Healthcare and Specialist Communications | 14.8 | 78.3 | 9.4 | 44.1 | 40.6 | 9.1 | 52.5 |
| 70.9 | 207.6 | 20.3 | 184.5 | 185.9 | 44.3 | 411.4 | |
Note
- 1
- Capital additions include purchases of property, plant and equipment and other intangible assets (including capitalised computer software).
| Assets | Liabilities | |||||
|---|---|---|---|---|---|---|
| Balance sheet | Segment assets |
Unallocated corporate assets1 |
Consolidated total assets |
Segment liabilities |
Unallocated corporate liabilities1 |
Consolidated total liabilities |
| £m | £m | £m | £m | £m | £m | |
| 2008 | ||||||
| Advertising and Media Investment Management | 12,034.5 | (8,757.8) | ||||
| Information, Insight & Consultancy | 3,830.0 | (1,022.3) | ||||
| Public Relations & Public Affairs | 1,583.3 | (363.7) | ||||
| Branding & Identity, Healthcare and Specialist Communications | 4,324.3 | (1,225.7) | ||||
| 21,772.1 | 2,691.2 | 24,463.3 | (11,369.5) | (7,134.0) | (18,503.5) | |
| 2007 | ||||||
| Advertising and Media Investment Management | 8,963.4 | (7,238.5) | ||||
| Information, Insight & Consultancy | 1,008.9 | (395.5) | ||||
| Public Relations & Public Affairs | 1,307.2 | (296.0) | ||||
| Branding & Identity, Healthcare and Specialist Communications | 3,839.1 | (1,031.1) | ||||
| 15,118.6 | 2,133.4 | 17,252.0 | (8,961.1) | (4,196.1) | (13,157.2) | |
Note
- 1
- Included in unallocated corporate assets and liabilities are corporate income tax, deferred tax and net interest-bearing debt. The debt has not been allocated as it is held centrally and specifically allocating it to individual segments is not considered to be a fair representation of the net assets of those segments.
Contributions by geographical area were as follows:
| 2008 £m |
2007 £m |
2006 £m |
|
|---|---|---|---|
| Revenue1 | |||
| North America | 2,603.2 | 2,266.7 | 2,291.1 |
| UK | 954.2 | 890.3 | 856.3 |
| Continental Europe | 2,127.3 | 1,657.4 | 1,532.9 |
| Asia Pacific, Latin America, Africa & Middle East |
1,792.2 | 1,371.5 | 1,227.5 |
| 7,476.9 | 6,185.9 | 5,907.8 | |
Margin |
Margin | Margin | ||||
|---|---|---|---|---|---|---|
| Headline PBIT2 | ||||||
| North America | 16.8% | 438.3 | 17.3% | 391.5 | 17.0% | 389.0 |
| UK | 13.0% | 124.1 | 12.0% | 107.1 | 11.4% | 97.9 |
| Continental Europe | 14.3% | 303.5 | 13.5% | 223.0 | 12.7% | 194.3 |
| Asia Pacific, Latin America, Africa & Middle East |
14.1% | 252.3 | 15.0% | 206.4 | 14.5% | 177.8 |
| 15.0% | 1,118.2 | 15.0% | 928.0 | 14.5% | 859.0 | |
Segment assets |
||||||
| North America | 7,430.5 | 5,494.4 | 4,536.0 | |||
| UK | 2,499.2 | 1,691.4 | 1,693.8 | |||
| Continental Europe | 7,304.1 | 4,748.5 | 3,946.0 | |||
| Asia Pacific, Latin America, Africa & Middle East |
4,538.3 | 3,184.3 | 2,721.1 | |||
| 21,772.1 | 15,118.6 | 12,896.9 | ||||
Capital additions3 |
||||||
| North America | 93.5 | 74.8 | 90.1 | |||
| UK | 27.3 | 28.2 | 29.4 | |||
| Continental Europe | 54.6 | 31.2 | 28.7 | |||
| Asia Pacific, Latin America, Africa & Middle East |
45.2 | 38.1 | 36.3 | |||
| 220.6 | 172.3 | 184.5 | ||||
Notes
- 1
- Intersegment sales have not been separately disclosed as they are not material.
- 2
- Headline PBIT is defined in note 31.
- 3
- Capital additions include purchases of property, plant and equipment and other intangible assets (including capitalised computer software).