Notes to the Accounts For the year ended 31 December 2007
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”.