Notes to the consolidated financial statements

Following the change in the organisational structure announced in May 2010, the Group restructured its internal organisation into four distinct segments: Speciality Food Ingredients, Bulk Ingredients, Sugars and Central costs. Sugars was subsequently classified as discontinued. Management reporting has been realigned with this reorganisation and, as a result, the segment information set out below reflects this change. Comparative information for the year ended 31 March 2010 has been reclassified.

Central costs, which include head office, treasury and reinsurance activities, do not meet the operating segment definition under IFRS 8 but have been disclosed as a reportable segment in the tables below to be consistent with internal management reporting.

Discontinued operations comprise previously disclosed International Sugar Trading and Eastern Sugar together with the Sugars division (Note 12).

The segment results for the year to 31 March 2011 are as follows:

(XLS:) Download Excel

 

 

Continuing operations

 

 

 

Notes

Speciality Food Ingredients
£m

Bulk Ingredients
£m

Central costs
£m

Total
£m

Discontinued operations (Note 12)
£m

Total from continuing and discontinued operations
£m

Sales

 

 

 

 

 

 

 

Total sales

 

916

1 987

2 903

590

3 493

Inter-segment sales

 

(111)

(72)

(183)

(183)

External sales (note a)

 

805

1 915

2 720

590

3 310

Operating profit/(loss)

 

 

 

 

 

 

 

Before exceptional items and amortisation of acquired intangible assets

 

206

157

(42)

321

(2)

319

Exceptional items

7

(7)

9

(7)

(5)

(43)

(48)

Amortisation of acquired intangible assets

15

(13)

(13)

(13)

Operating profit/(loss)

 

186

166

(49)

303

(45)

258

Net finance expense

 

 

 

 

(58)

(58)

Profit/(loss) before tax

 

 

 

 

245

(45)

200

 

 

 

 

 

 

 

 

Segment assets (note b)

 

207

511

13

731

40

771

Unallocated assets:

 

 

 

 

 

 

 

– non-current assets

 

 

 

 

 

 

1 424

– current assets

 

 

 

 

 

 

856

Total assets

 

 

 

 

 

 

3 051

 

 

 

 

 

 

 

 

Segment liabilities (note b)

 

(106)

(237)

(61)

(404)

(8)

(412)

Unallocated liabilities:

 

 

 

 

 

 

 

– non-current liabilities

 

 

 

 

 

 

(1 236)

– current liabilities

 

 

 

 

 

 

(430)

Total liabilities

 

 

 

 

 

 

(2 078)

 

 

 

 

 

 

 

 

Other segment information

 

 

 

 

 

 

 

Net working capital

 

101

274

(48)

327

32

359

Capital investments (note c)

 

26

34

16

76

8

84

Depreciation

 

34

55

2

91

9

100

Amortisation of intangible assets

15

18

18

18

Impairment charges

 

2

2

4

6

Share-based payments

9

1

8

9

9

  1. (a) There were no customers that contributed more than 10% of the Group’s external sales from continuing operations for the year ended 31 March 2011.
  2. (b) Segment assets and liabilities relates to controllable working capital (trade and other receivables, inventories and trade and other payables), as reported to the Chief Operating Decision Maker. All other assets and liabilities are reported within segment information as unallocated as these are not reported to the Chief Operating Decision Maker at operations segment level.
  3. (c) 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 2010 are as follows:

(XLS:) Download Excel

 

 

Continuing operations

 

 

 

Notes

Speciality Food Ingredients
£m

Bulk
Ingredients
£m

Central
costs
£m

Total
£m

Discontinued operations
(Note 12)
£m

Total from
continuing and
discontinued
operations
£m

Sales

 

 

 

 

 

 

 

Total sales

 

869

1 772

2 641

1 074

3 715

Inter-segment sales

 

(81)

(27)

(108)

(108)

External sales (note a)

 

788

1 745

2 533

1 074

3 607

Operating profit/(loss)

 

 

 

 

 

 

 

Before exceptional items and amortisation of acquired intangible assets

 

163

136

(31)

268

28

296

Exceptional items

7

(66)

(237)

5

(298)

22

(276)

Amortisation of acquired intangible assets

15

(14)

(14)

(14)

Operating profit/(loss)

 

83

(101)

(26)

(44)

50

6

Net finance (expense)/income

 

 

 

 

(72)

1

(71)

(Loss)/profit before tax

 

 

 

 

(116)

51

(65)

 

 

 

 

 

 

 

 

Segment assets (note b)

 

216

386

11

613

222

835

Unallocated assets:

 

 

 

 

 

 

 

– non-current assets

 

 

 

 

 

 

1 777

– current assets

 

 

 

 

 

 

676

Total assets

 

 

 

 

 

 

3 288

 

 

 

 

 

 

 

 

Segment liabilities (note b)

 

(90)

(198)

(37)

(325)

(161)

(486)

Unallocated liabilities:

 

 

 

 

 

 

 

– non-current liabilities

 

 

 

 

 

 

(1 555)

– current liabilities

 

 

 

 

 

 

(393)

Total liabilities

 

 

 

 

 

 

(2 434)

 

 

 

 

 

 

 

 

Other segment information

 

 

 

 

 

 

 

Net working capital

 

126

188

(26)

288

61

349

Capital investments (note c)

 

25

40

5

70

22

92

Depreciation

 

39

58

2

99

17

116

Amortisation of intangible assets

15

18

2

20

20

Impairment charges

 

2

217

219

16

235

Share-based payments

9

4

4

1

5

  1. (a) Two external customers contributed more than 10% of the Group’s external sales from continuing operations for the year ended 31 March 2010. The combined external sales for these customers were £553 million which have been recorded across all the reportable segments, excluding central costs.
  2. (b) Segment assets and liabilities relates to controllable working capital (trade and other receivables, inventories and trade and other payables) as reported to the Chief Operating Decision Maker. All other assets and liabilities are reported within segment information as unallocated as these are not reported to the Chief Operating Decision Maker at operations segment level.
  3. (c) 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

 

2011
£m

2010
£m

2011
£m

2010
£m

2011
£m

2010
£m

United Kingdom

65

43

16

19

38

248

United States

1 746

1 652

1 948

1 841

660

735

Other European countries

432

426

451

425

327

372

Rest of world

477

412

305

248

156

202

Total

2 720

2 533

2 720

2 533

1 181

1 557