Notes 1-5

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).

Back to top