The Group has three reportable segments (four including the divested Services Segment), as discussed below, which are based on information provided to the Board of Directors, which is deemed to be the Group's chief operating decision maker. Several operating segments which have similar economic characteristics have been aggregated into the reporting segments.
On 16 August 2013, the Group completed the disposal of the Services Segment. This Segment comprised National Veterinary Services, Dechra Laboratory Services and Dechra Specialist Laboratories. This Segment serviced UK veterinary practices in both the companion animal and livestock sectors. The Segment is a discontinued operation and was classified as held for sale at 30 June 2013. Refer to note 30 for further details and segmental analysis in relation to the Services Segment.
The European Pharmaceuticals Segment comprises Dechra Veterinary Products EU and Dechra Pharmaceuticals Manufacturing. This Segment operates internationally and manufactures and markets Companion Animal, Equine and Food producing Animal Products. This Segment also includes third party manufacturing sales.
The US Pharmaceuticals Segment consists of Dechra Veterinary Products US which sells companion animal pharmaceuticals into that territory. The Segment expanded during this financial year with the acquisition of PSPC Inc.'s manufacturing unit based in Melbourne, Florida.
The Pharmaceuticals Research and Development Segment includes all of the Group's pharmaceutical research and development activities. From a Board perspective, this Segment has no revenue income.
Reconciliations of reportable segment revenues, profit or loss and liabilities and other material items:
|Revenue by segment|
|European Pharmaceuticals||— total||172,449||168,684|
|— inter segment||(35)||—|
|US Pharmaceuticals||— total||21,215||20,889|
|— inter segment||(58)||(397)|
|Operating profit/(loss) by segment|
|Pharmaceuticals Research and Development||(8,248)||(7,961)|
|Segment operating profit||46,748||43,443|
|Corporate and other unallocated costs||(4,580)||(4,335)|
|Underlying operating profit||42,168||39,108|
|Amortisation of acquired intangibles||(16,543)||(18,195)|
|Total operating profit||24,996||18,336|
|Profit before taxation — continuing operations||21,442||12,478|
|Total liabilities by segment|
|Services (classified as held for sale in 2013)||—||(53,961)|
|Pharmaceuticals Research and Development||(633)||(804)|
|Corporate loans and revolving credit facility||(31,653)||(113,110)|
|Corporate accruals and other payables||(3,222)||(3,496)|
|Current and deferred tax liabilities||(27,961)||(37,552)|
|Revenue by product category|
|Third party manufacturing||18,002||17,445|
|Additions to intangible non-current assets by segment (including through business combinations)|
|Services (classified as held for sale in 2013)||—||88|
|Pharmaceuticals Research and Development||1,065||1,092|
|Corporate and central costs||25||—|
|Additions to Property, Plant and Equipment by segment (including through business combinations)|
|Services (classified as held for sale in 2013)||—||733|
|Pharmaceuticals Research and Development||55||69|
|Corporate and central costs||26||223|
|Depreciation and amortisation by segment|
|Services (included within discontinued operations)||—||757|
|Pharmaceuticals Research and Development||816||426|
|Corporate and central costs||50||16|
The following table shows revenue based on the geographical location of customers and non-current assets based on the country of domicile of the entity holding the asset:
|Rest of Europe||71,918||152,158||74,285||176,674|
|Rest of World||12,400||—||10,137||—|
* £2,309,000 has been reclassified from UK to Rest of Europe due to customer reclassification.