NOTES TO THE ACCOUNTS

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1 REVENUE AND SEGMENTAL INFORMATION

REVENUE

An analysis of the Group's revenue is as follows:

	2009 £m	2008 £m
Sale of goods	2,743.5	3,053.6
Total revenue	2,743.5	3,053.6
Finance income	11.7	11.9
Total income	2,755.2	3,065.5

SEGMENTAL INFORMATION

A) SEGMENTAL RESULTS

Following the adoption of IFRS 8 “Operating Segments”, the Group has identified its reportable segments as those upon which the Group Board regularly bases its opinion and assesses performance. The Group has deemed it appropriate to aggregate its operating segments into two reported segments: UK and Ireland; and Mainland Europe. The constituent operating segments have been aggregated as they have similar products and services; production processes; types of customer; methods of distribution; regulatory environments; and economic characteristics.

	2009 UK and Ireland £m	2009 Mainland Europe £m	2009 Eliminations £m	2009 Total £m	2008 UK and Ireland £m	2008 Mainland Europe £m	2008 Eliminations £m	2008 Total £m
Revenue
External sales	1,326.2	1,417.3	–	2,743.5	1,669.4	1,384.2	–	3,053.6
Inter-segment sales*	0.5	3.9	(4.4)	–	–	2.3	(2.3)	–
Total revenue	1,326.7	1,421.2	(4.4)	2,743.5	1,669.4	1,386.5	(2.3)	3,053.6
Result
Segment result before amortisation of acquired intangibles, impairment charges and restructuring costs	37.7	50.2	–	87.9	111.2	67.9	–	179.1
Amortisation of acquired intangibles and impairment charges	(49.5)	(9.1)	–	(58.6)	(31.7)	(8.9)	–	(40.6)
Restructuring costs	(49.8)	(5.0)	–	(54.8)	(19.1)	(3.1)	–	(22.2)
Segment operating (loss)/profit	(61.6)	36.1	–	(25.5)	60.4	55.9	–	116.3
Parent Company costs				(7.0)				(9.3)
Operating (loss)/profit				(32.5)				107.0
Net finance costs				(20.3)				(32.5)
Net losses on derivative financial instruments				(2.5)				(41.4)
(Loss)/profit before tax				(55.3)				33.1
Income tax credit/(expense)				10.2				(26.3)
Minority interests				(0.5)				(0.5)
Retained (loss)/profit				(45.6)				6.3

Balance sheet
Assets
Segment assets	801.1	826.0	–	1,627.1	909.0	961.4	–	1,870.4
Unallocated assets				170.9				74.0
Consolidated total assets				1,798.0				1,944.4

Liabilities
Segment liabilities	260.4	188.0	–	448.4	245.4	246.5	–	491.9
Unallocated liabilities				517.8				833.6
Consolidated total liabilities				966.2				1,325.5

Other segment information
Capital expenditure on:
Property, plant and equipment	10.7	8.9	–	19.6	39.7	29.0	–	68.7
Intangible assets	–	–	–	–	35.8	4.6	–	40.4
Goodwill	(3.0)	1.7	–	(1.3)	40.2	25.8	–	66.0
Non-cash expenditure:
Depreciation	25.7	14.5	–	40.2	28.4	14.2	–	42.6
Impairment of property, plant and equipment	6.8	–	–	6.8	–	–	–	–
Amortisation of acquired intangibles	19.5	9.1	–	28.6	17.5	8.9	–	26.4
Goodwill impairment charges	30.0	–	–	30.0	14.2	–	–	14.2

* Inter-segment sales are charged at the prevailing market rates.

B) REVENUE BY PRODUCT GROUP

The Group focuses its activities into four product sectors: Insulation and Building Environments; Interiors; Exteriors; and Specialist Construction Products (“SCP”).

The following table provides an analysis of Group sales by type of product:

	2009 £m	2008 £m
Insulation and Building Environments	1,086.4	1,111.5
Interiors	685.9	809.2
Exteriors	749.0	848.9
SCP	222.2	284.0
Total	2,743.5	3,053.6

C) GEOGRAPHIC INFORMATION

The Group’s revenue from external customers and its non-current assets (i.e. property, plant and equipment, goodwill, intangible assets and deferred tax assets) by geographical location are as follows:

Country	2009 Revenue £m	2009 Non-current assets £m	2008 Revenue £m	2008 Non-current assets £m
United Kingdom	1,239.3	442.6	1,536.2	501.2
Ireland	86.9	14.0	133.2	52.9
France	520.0	269.6	484.5	288.1
Germany and Austria	588.6	73.7	570.5	79.5
Poland	122.7	23.0	171.1	26.7
Benelux*	156.3	46.1	120.0	49.3
Central Europe	29.7	29.5	38.1	30.8
Total	2,743.5	898.5	3,053.6	1,028.5

* Includes international air handling business (headquartered in Benelux).

There is no material difference between the basis of preparation of the information reported above and the Accounting Policies adopted by the Group.

Annual Report and Accounts 2009

Investor contact

Richard Monro Company Secretary