Annual Report and Accounts 2009

Notes to the Consolidated Financial Statements for the year to 31 December 2009

4. Operating segments

The Group has adopted IFRS 8 Operating segments requiring information to be presented in the same basis as it is reviewed internally. The Group's Board of Directors view the businesses on a geographic basis when making strategic decisions for the Group and as such the Group is organised into four operating divisions – Housing United Kingdom, Housing North America, Housing Spain and Gibraltar, and Corporate.

Taylor Woodrow Construction, previously reported as the business segment 'Construction', was disposed of on 9 September 2008, and is disclosed as a discontinued operation in 2008. The results and net assets of a minor residual construction operation, which was disposed of in April 2009, are presented within the 'Corporate' segment.

Segment information about these businesses is presented below:

2009 Housing
United
Kingdom
£m
Housing
North
America
£m
Housing
Spain and
Gibraltar
£m
Corporate
£m
Consolidated
£m
Revenue from continuing operations:
External sales 1,700.4 824.3 61.0 9.9 2,595.6
Result from continuing operations:
Operating profit/(loss) before joint ventures and exceptional items 15.3 41.5 (1.4) (17.7) 37.7
Share of results of joint ventures (1.0) 6.6 5.6
Profit/(loss) on ordinary activities before finance costs, exceptional items and after share of results of joint ventures 14.3 48.1 (1.4) (17.7) 43.3
Exceptional items (452.8) (79.8) (3.3) (44.8) (580.7)
Loss on ordinary activities before finance costs, after share of results of joint ventures (438.5) (31.7) (4.7) (62.5) (537.4)
Finance costs, net (including exceptional finance costs) (162.5)
Loss on ordinary activities before taxation   (699.9)
Taxation (including exceptional tax)   59.3
Loss for the year – total Group (640.6)
2009 Housing
United
Kingdom*
£m
Housing
North
America
£m
Housing
Spain and
Gibraltar
£m
Corporate
£m
Consolidated
£m
Assets and liabilities:
Segment operating assets 2,865.4 805.4 124.5 11.6 3,806.9
Joint ventures 30.0 21.7 0.2 51.9
Segment operating liabilities (1,202.3) (269.0) (21.2) (54.1) (1,546.6)
Net operating assets/(liabilities) 1,693.1 558.1 103.5 (42.5) 2,312.2
Goodwill 2.4
Net current taxation (181.6)
Net deferred taxation 118.8
Net debt (750.9)
Net assets 1,500.9

* Following the disposal of the Construction division and other subsidiaries that previously participated in the Taylor Woodrow Group Pension and Life Assurance Fund the Group has determined that all the participating interests materially sit within the Housing United Kingdom business segment.

2009 Housing
United
Kingdom
£m
Housing
North
America
£m
Housing
Spain and
Gibraltar
£m
Corporate
£m
Consolidated
£m
Other information:
Property, plant and equipment additions 0.8 0.8 0.7 0.2 2.5
Depreciation – plant and equipment 2.3 1.5 0.7 0.2 4.7

2008 segment information about these businesses is presented below:

2008 Housing
United
Kingdom
£m
Housing
North
America
£m
Housing
Spain and
Gibraltar
£m
Corporate
£m
Consolidated
£m
Revenue from continuing operations:  
External sales 2,390.1 981.6 59.8 36.2 3,467.7
Result from continuing operations:
Operating profit/(loss) before joint ventures, brand amortisation and exceptional items 53.2 52.1 (2.4) (14.2) 88.7
Share of results of joint ventures (0.2) 7.8 7.6
Profit/(loss) on ordinary activities before finance costs, exceptional items and brand amortisation, after share of results of joint ventures 53.0 59.9 (2.4) (14.2) 96.3
Brand amortisation (2.4) (2.4)
Exceptional items (1,750.4) (76.6) (37.4) (20.1) (1,884.5)
Loss on ordinary activities before finance costs, after share of results of joint ventures (1,699.8) (16.7) (39.8) (34.3) (1,790.6)
Finance costs, net (including exceptional finance costs) (179.1)
Loss on ordinary activities before taxation (1,969.7)
Taxation (including exceptional tax) 76.6
 
Result from discontinued operations:
Profit for the year from discontinued operations 53.1
Loss for the year – total Group (1,840.0)
2008 Housing
United
Kingdom*
£m
Housing
North
America
£m
Housing
Spain and
Gibraltar
£m
Corporate
£m
Consolidated
£m
Assets and liabilities:
Segment operating assets 3,919.9 1,014.8 175.4 25.2 5,135.3
Joint ventures 45.4 22.1 0.2 67.7
Segment operating liabilities (1,379.6) (359.1) (47.6) (113.4) (1,899.7)
Net operating assets/(liabilities) 2,585.7 677.8 128.0 (88.2) 3,303.3
Net current taxation (106.1)
Net deferred taxation 5.3
Net debt (1,529.3)
Net assets 1,673.2

* The Group was unable to allocate the defined benefit pension scheme assets and liabilities of the Taylor Woodrow Group Pension and Life Assurance Fund, a multi-employer pension scheme, on an actuarial basis by entity. However, for the purposes of the 2008 segmental analysis above, the Group has allocated the deficit to Housing United Kingdom as the participating entities materially sit within this business segment. The assets and liabilities of the George Wimpey Staff Pension Scheme have been allocated in their entirety to Housing United Kingdom.

2008 Housing
United
Kingdom
£m
Housing
North
America
£m
Housing
Spain and
Gibraltar
£m
Corporate
£m
Consolidated
£m
Other information:
Property, plant and equipment additions 2.3 1.3 0.1 5.5 9.2
Amortisation of intangibles 6.7 6.7
Depreciation – plant and equipment 3.5 1.5 0.2 2.3 7.5