Notes to the consolidated financial statements

From 1 April 2009, the Group has adopted IFRS 8 Operating Segments. The Group has identified the Chief Operating Decision Maker ‘CODM’ as the Board of Directors, as key decisions on assessing performance and allocation of resources are reviewed by the Board or its sub-committees. Under IFRS 8, there has been no change to the Group’s reportable segments. Central costs, which include head office, treasury and reinsurance activities, do not meet the operating segment definition under IFRS 8 but has been disclosed as a reportable segment in the results below to be consistent with internal management reporting.

Discontinued operations comprise international Sugar Trading and Eastern Sugar (see Note 12).

The segment results for the year to 31 March 2010 are as follows:

(XLS:) Download Excel

 

Continuing operations

 

 

 

Food & Industrial Ingredients, Americas
£m

Food & Industrial Ingredients, Europe
£m

Sugars
£m

Sucralose
£m

Central costs
£m

Total
£m

Discontinued operations (Note 12)
£m

Total from continuing & discontinued operations
£m

Sales

 

 

 

 

 

 

 

 

Total sales

1 866

493

973

187

3 519

135

3 654

Inter-segment sales

(11)

(2)

(13)

(34)

(47)

External sales (note a)

1 855

491

973

187

3 506

101

3 607

Operating profit/(loss)

 

 

 

 

 

 

 

 

Before exceptional items and amortisation of acquired intangible assets

178

54

30

67

(31)

298

(2)

296

Exceptional items (Note 7)

(245)

(3)

22

(55)

5

(276)

(276)

Amortisation of acquired intangible assets (Note 15)

(3)

(8)

(3)

(14)

(14)

Operating (loss)/profit

(70)

43

52

9

(26)

8

(2)

6

Net finance expense

 

 

 

 

 

(69)

(2)

(71)

Loss before tax

 

 

 

 

 

(61)

(4)

(65)

 

 

 

 

 

 

 

 

 

Segment assets

1 183

563

478

178

98

2 500

71

2 571

Unallocated assets:

 

 

 

 

 

 

 

 

– cash and cash equivalents

 

 

 

 

 

 

 

504

– debt-related derivative assets

 

 

 

 

 

 

 

66

– current tax assets

 

 

 

 

 

 

 

4

– deferred tax assets

 

 

 

 

 

 

 

143

Total assets

 

 

 

 

 

 

 

3 288

 

 

 

 

 

 

 

 

 

Segment liabilities

483

92

182

54

104

915

24

939

Unallocated liabilities:

 

 

 

 

 

 

 

 

– corporate borrowings

 

 

 

 

 

 

 

1 309

– debt-related derivative liabilities

 

 

 

 

 

 

 

75

– current tax liabilities

 

 

 

 

 

 

 

52

– deferred tax liabilities

 

 

 

 

 

 

 

59

Total liabilities

 

 

 

 

 

 

 

2 434

 

 

 

 

 

 

 

 

 

Other segment information

 

 

 

 

 

 

 

 

Net operating assets/(liabilities)

700

471

296

124

(6)

1 585

47

1 632

Capital investments (note b)

32

31

22

2

5

92

92

Depreciation (Note 16)

61

15

17

21

2

116

116

Amortisation of intangible assets (Note 15)

5

11

4

20

20

Impairment charges

217

2

16

235

235

Share-based payments (Note 9)

1

1

3

5

5

  1. (a)One external customer (2009 – none) contributed more than 10% of the Group’s continuing external sales for the year ended 31 March 2010. The external sales for this customer are £354 million which has been recorded across all the reportable segments, excluding central costs.
  2. (b)Capital investments comprise capital expenditure on property, plant and equipment, intangible assets and investments. These items include amounts arising on acquisition of businesses.

The segment results for the year to 31 March 2009 are as follows:

(XLS:) Download Excel

 

Continuing operations

 

 

 

Food & Industrial Ingredients, Americas
£m

Food & Industrial Ingredients, Europe
£m

Sugars
£m

Sucralose
£m

Central costs
£m

Total
£m

Discontinued operations (Note 12)
£m

Total from continuing & discontinued operations
£m

Sales

 

 

 

 

 

 

 

 

Total sales

1 810

541

1 053

169

3 573

874

4 447

Inter-segment sales

(13)

(2)

(5)

(20)

(22)

(42)

External sales

1 797

539

1 048

169

3 553

852

4 405

Operating profit/(loss)

 

 

 

 

 

 

 

 

Before exceptional items and amortisation of acquired intangible assets

181

51

12

72

(18)

298

1

299

Exceptional items (Note 7)

(13)

(9)

(97)

(119)

(22)

(141)

Amortisation of acquired intangible assets (Note 15)

(3)

(8)

(4)

(15)

(15)

Operating profit/(loss)

165

43

3

(29)

(18)

164

(21)

143

Net finance expense

 

 

 

 

 

(51)

(2)

(53)

Profit/(loss) before tax

 

 

 

 

 

113

(23)

90

 

 

 

 

 

 

 

 

 

Segment assets

1 723

606

562

272

131

3 294

175

3 469

Unallocated assets:

 

 

 

 

 

 

 

 

– cash and cash equivalents

 

 

 

 

 

 

 

434

– debt-related derivative assets

 

 

 

 

 

 

 

60

– current tax assets

 

 

 

 

 

 

 

6

– deferred tax assets

 

 

 

 

 

 

 

30

Total assets

 

 

 

 

 

 

 

3 999

 

 

 

 

 

 

 

 

 

Segment liabilities

537

76

177

29

116

935

171

1 106

Unallocated liabilities:

 

 

 

 

 

 

 

 

– corporate borrowings

 

 

 

 

 

 

 

1 652

– debt-related derivative liabilities

 

 

 

 

 

 

 

73

– current tax liabilities

 

 

 

 

 

 

 

77

– deferred tax liabilities

 

 

 

 

 

 

 

78

Total liabilities

 

 

 

 

 

 

 

2 986

 

 

 

 

 

 

 

 

 

Other segment information

 

 

 

 

 

 

 

 

Net operating assets

1 186

530

385

243

15

2 359

4

2 363

Capital investments (note a)

164

33

31

5

9

242

242

Depreciation (Note 16)

55

14

16

25

2

112

112

Amortisation of intangible assets (Note 15)

6

9

5

20

20

Impairment charges

3

1

10

97

111

12

123

Share-based payments (Note 9)

1

1

3

5

5

  1. (a)Capital investments comprise capital expenditure on property, plant and equipment, intangible assets and investments. These items include amounts arising on acquisition of businesses.

The United Kingdom is the home country of the parent. Sales (from continuing operations) and non-current assets, other than financial instruments, deferred tax assets and retirement benefit assets in the principal territories are as follows:

(XLS:) Download Excel

 

External sales by destination
Year to 31 March

External sales by origin
Year to 31 March

Location of non-current assets
Year to 31 March

 

2010
£m

2009
£m

2010
£m

2009
£m

2010
£m

2009
£m

United Kingdom

473

461

630

710

248

248

United States

1 656

1 598

1 846

1 786

735

1 066

Other European countries

768

954

613

686

372

382

Rest of world

609

540

417

371

202

239

Total

3 506

3 553

3 506

3 553

1 557

1 935

Sales (from continuing operations) are split between the following types of products:

(XLS:) Download Excel

 

Year to 31 March

 

2010
£m

2009
£m

Primary

2 476

2 584

Value added

1 030

969

Total

3 506

3 553