Notes to the financial statements

3 SEGMENTAL INFORMATION

Geographical segments
The Group’s business segments operate primarily in the UK, the home country of the Company. There are additional operations in Europe.

The geographical analysis of turnover is as follows:

Turnover by destination	2008 £m	2007 £m
United Kingdom	76.4	70.4
Europe	4.2	4.0
North America	–	0.1
Rest of World	0.3	0.7
Total turnover	80.9	75.2

Turnover is allocated based on the country in which the customer is located. All turnover originates from the United Kingdom. Turnover from the provision of services is £79.0 million (2007: £73.4 million) and from licence income is £1.9 million (2007: £1.8 million).

Total assets

	2008 £m	2007 £m
United Kingdom	26.1	29.7
Europe	0.1	–
Total assets	26.2	29.7

Total assets are allocated based on the country in which the asset is located.

Capital expenditure

	2008 £m	2007 £m
United Kingdom	0.4	1.0
North America	–	0.7
Total capital expenditure	0.4	1.7

Capital expenditure relates to property, plant & equipment and intangible assets. Capital expenditure is allocated based on the country in which the asset is located.

Business segments

Based on risks and returns the Directors consider that the primary reporting format is by business segment. The Directors consider that there is only one business segment, being consultancy, policy support and programme management. Therefore, the disclosures for the primary segment are already given in these financial statements.

The prior year discontinued business segmental results are shown below.

Segmental results for the year ended 31 March 2007 (discontinued operations)

		Engineering	AEA	Nuclear	Battery
	Kinectrics	Services Inc	Rail1	Programmes	Systems	Other	Group
	£m	£m	£m	£m	£m	£m	£m
External sales	12.4	2.5	18.6	4.7	0.5	–	38.7
Inter-segment sales	–	–	0.5	–	–	(0.5)	–
Turnover	12.4	2.5	19.1	4.7	0.5	(0.5)	38.7
Operating profit/(loss)	0.4	0.3	(0.1)	(1.2)	(0.1)	0.1	(0.6)
Finance costs							(7.4)
Finance income							7.8
Loss before tax							(0.2)
Tax expense							(0.5)
Loss for the year from discontinued operations							(0.7)

Segmental capital expenditure for the year ended 31 March 2007 (discontinued operations)

		Engineering	AEA	Nuclear	Battery
	Kinectrics	Services Inc	Rail1	Programmes	Systems	Other	Group
	£m	£m	£m	£m	£m	£m	£m
Capital expenditure	0.5	0.2	0.2	–	–	–	0.9


1	Includes ESR Technology Limited and the nCode group of companies.