Notes to the financial statements
For the 52 weeks ended 1 March 2008
5. Segmental information
Primary reporting format – business segments
The Group’s primary reporting format is by business segment. This is in line with the current management structure, which reflects the different risks associated with the different businesses. The Group is organised into three main business segments: Argos, Homebase and Financial Services together with Central Activities. Revenue earned from sales is disclosed by origin and is not materially different from revenue by destination.
52 weeks ended 1 March 2008
| Income statement | Notes | Argos £m |
Homebase £m |
Financial Services £m |
Central Activities £m |
Total £m |
|---|---|---|---|---|---|---|
| Revenue | 6 | 4,320.9 | 1,568.5 | 95.4 | – | 5,984.8 |
| Profit | ||||||
| Operating profit/(loss) before exceptional items | 376.2 | 45.1 | 5.5 | (40.5) | 386.3 | |
| Exceptional items | 10 | – | (19.4) | – | 20.2 | 0.8 |
| Segment result | 376.2 | 25.7 | 5.5 | (20.3) | 387.1 | |
| – Finance income | 11 | 62.3 | ||||
| – Finance expense | 11 | (25.0) | ||||
| Net financing income | 11 | 37.3 | ||||
| Share of post-tax results of joint ventures and associates | 18 | 1.6 | ||||
| Profit before tax | 426.0 | |||||
| Taxation | 12 | (131.4) | ||||
| Profit for the period | 294.6 | |||||
The result for Financial Services is after deducting funding costs of £19.6m (note 11).
As at 1 March 2008
| Balance sheet | Notes | Argos £m |
Homebase £m |
Financial Services £m |
Central Activities £m |
Total £m |
|---|---|---|---|---|---|---|
| Segment assets | 1,280.1 | 686.7 | 459.1 | 273.2 | 2,699.1 | |
| Investment in associates and joint ventures | 18 | – | – | – | 7.7 | 7.7 |
| Taxation | – | – | – | 63.5 | 63.5 | |
| Goodwill | 15 | 1,152.3 | 770.4 | – | – | 1,922.7 |
| Total assets | 2,432.4 | 1,457.1 | 459.1 | 344.4 | 4,693.0 | |
| Segment liabilities | (743.8) | (432.1) | (56.1) | (0.3) | (1,232.3) | |
| Taxation | – | – | – | (115.5) | (115.5) | |
| Total liabilities | (743.8) | (432.1) | (56.1) | (115.8) | (1,347.8) | |
| Net assets | 1,688.6 | 1,025.0 | 403.0 | 228.6 | 3,345.2 | |
| Less goodwill | (1,152.3) | (770.4) | – | – | (1,922.7) | |
| Net operating assets | 536.3 | 254.6 | 403.0 | 228.6 | 1,422.5 |
52 weeks ended 1 March 2008
| Other segment items | Notes | Argos £m |
Homebase £m |
Financial Services £m |
Central Activities £m |
Total £m |
|---|---|---|---|---|---|---|
| Depreciation of property, plant and equipment | 17 | (71.3) | (55.6) | – | – | (126.9) |
| Impairment of fixed assets | 17 | – | (10.3) | – | – | (10.3) |
| Amortisation of intangible assets | 16 | (21.1) | (3.0) | (0.6) | – | (24.7) |
| Capital expenditure on property, plant and equipment | 17 | (80.9) | (95.4) | – | – | (176.3) |
| Capital expenditure on intangible assets | 16 | (29.8) | (4.5) | (0.7) | – | (35.0) |
Short period ended 3 March 2007
| Income statement | Notes | Argos £m |
Homebase £m |
Financial Services £m |
Central Activities £m |
Total £m |
|---|---|---|---|---|---|---|
| Revenue | 6 | 3,912.8 | 1,606.3 | 87.6 | – | 5,606.7 |
| Profit | ||||||
| Operating profit/(loss) before exceptional items | 300.9 | 51.2 | 4.5 | (28.7) | 327.9 | |
| Exceptional items | 10 | – | (4.1) | – | (18.6) | (22.7) |
| Segment result | 300.9 | 47.1 | 4.5 | (47.3) | 305.2 | |
| – Finance income | 11 | 55.5 | ||||
| – Finance expense | 11 | (71.4) | ||||
| – Exceptional finance income | 10 | 6.9 | ||||
| Net financing costs | 11 | (9.0) | ||||
| Share of post-tax results of joint ventures and associates | 18 | 0.7 | ||||
| Profit before tax | 296.9 | |||||
| Taxation | 12 | (109.5) | ||||
| Profit for the period | 187.4 | |||||
The results for Financial Services are after deducting funding costs of £16.4m (note 11).
As at 3 March 2007
| Balance sheet | Notes | Argos £m |
Homebase £m |
Financial Services £m |
Central Activities £m |
Total £m |
|---|---|---|---|---|---|---|
| Segment assets | 1,222.8 | 605.0 | 439.7 | 292.9 | 2,560.4 | |
| Investment in associates and joint ventures | 18 | – | – | – | 9.2 | 9.2 |
| Taxation | – | – | – | 77.4 | 77.4 | |
| Goodwill | 15 | 1,152.3 | 726.6 | – | – | 1,878.9 |
| Total assets | 2,375.1 | 1,331.6 | 439.7 | 379.5 | 4,525.9 | |
| Segment liabilities | (708.8) | (383.7) | (49.3) | (1.8) | (1,143.6) | |
| Borrowings | 23 | – | – | – | (223.6) | (223.6) |
| Taxation | – | – | – | (80.0) | (80.0) | |
| Total liabilities | (708.8) | (383.7) | (49.3) | (305.4) | (1,447.2) | |
| Net assets | 1,666.3 | 947.9 | 390.4 | 74.1 | 3,078.7 | |
| Less goodwill | (1,152.3) | (726.6) | – | – | (1,878.9) | |
| Net operating assets | 514.0 | 221.3 | 390.4 | 74.1 | 1,199.8 |
Short period ended 3 March 2007
| Other segment items | Notes | Argos £m |
Homebase £m |
Financial Services £m |
Central Activities £m |
Total £m |
|---|---|---|---|---|---|---|
| Depreciation of property, plant and equipment | 17 | (70.2) | (59.8) | – | – | (130.0) |
| Impairment of fixed assets | 17 | – | (4.1) | – | – | (4.1) |
| Amortisation of intangible assets | 16 | (14.1) | (1.8) | (0.5) | – | (16.4) |
| Capital expenditure on property, plant and equipment | 17 | (54.8) | (79.3) | – | – | (134.1) |
| Capital expenditure on intangible assets | 16 | (27.6) | – | (0.7) | – | (28.3) |
Geographical segments
Home Retail Group trades predominantly in the UK and the Republic of Ireland and consequently the majority of revenues, capital expenditure and segment assets arise there.
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