4 Operating segmental analysis

Segment information, as discussed above, is presented in the consolidated financial statements in respect of the Group's geographical segments. This reflects the Group's management and internal reporting structure, and the operating basis on which individual operations are reviewed by the Chief Operating Decision Maker (the Board).

Performance is measured based on segment underlying profit before finance costs and income tax as included in the internal management reports that are reviewed by the Chief Operating Decision Maker. This is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within the industry.

Inter-segment pricing is determined on an arm's length basis.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.

Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for more than one period.

Geographical operating segments

The Group is composed of the following main geographical operating segments:

UK

Mainland Europe/USA: includes Norway, Sweden, Hungary, Ireland, Holland, Poland, USA and Mexico

Asia: includes Malaysia, China, Singapore, Taiwan, Thailand and India

In presenting information on the basis of geographical operating segments, segment revenue and segment assets are based on the geographical location of our entities across the world, and are consolidated into the three distinct geographical regions, which the Board uses to monitor and assess the Group.

March 2012UK
£000
Mainland
Europe/USA
£000
Asia
£000
Common
Costs
£000
Total
£000
Revenue




Revenue from external customers 57,782 23,606 31,122 112,510
Inter segment revenue 1,489 549 4,052 6,090
Total revenue 59,271 24,155 35,174 118,600
Operating result before separately disclosed items and financing costs 2,735 619 3,764 (1,489) 5,629
Net financing costs (487) (1) (51) (88) (627)
Segment result before separately disclosed items 2,248 618 3,713 (1,577) 5,002
Separately disclosed items (see note 2)



(243)
Profit before tax



4,759
Specific disclosure items




Depreciation and amortisation 177 56 645 318 1,196
Assets and liabilities




Segment assets 35,291 10,230 50,327 5,993 101,841
Segment liabilities (26,396) (3,327) (16,048) (2,582) (48,353)
March 2011UK
£000
Mainland
Europe/USA
£000
Asia
£000
Common
Costs
£000
Total
£000
Revenue




Revenue from external customers 57,125 21,509 27,455 106,089
Inter segment revenue 1,809 366 3,989 6,164
Total revenue 58,934 21,875 31,444 112,253
Operating result before separately disclosed items and financing costs 2,462 (50) 3,204 (1,289) 4,327
Net financing costs (414) 4 11 (155) (554)
Segment result before separately disclosed items 2,048 (46) 3,215 (1,444) 3,773
Separately disclosed items (see note 2)



(1,251)
Profit before tax



2,522
Specific disclosure items




Depreciation and amortisation 260 65 555 318 1,198
Assets and liabilities




Segment assets 34,693 10,256 31,497 6,238 82,684
Segment liabilities (27,817) (3,490) (4,966) (3,566) (39,839)

There were no major customers that represent more than 10% of the revenue.

There was no material difference in the UK, Europe Mainland and USA regions between the external revenue based on location of the entities and the location of the customers. Of the Asian external revenue, £2.73 million (2011: £2.53 million) was sold into the American market and £4.81 million (2011: £5.96 million) sold into the European market.

Revenue is derived solely from the manufacture and logistical supply of industrial fasteners and category 'C' components.

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