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3. SEGMENTAL INFORMATION

The Group organised into two operating segments, development, registration and commercialisation of products through marketing partners, and direct sales and marketing of pharmaceutical products. These segments are on the basis on which the Group reports its primary segment information.

	2008				2007
	Marketing				Marketing
	partners	Direct	Total		partners	Direct	Total
Business segments	£'000	£'000	£'000		£'000	£'000	£'000
Revenue	16,540	13,738	30,278		11,344	11,834	23,178
Segment opertaing profit/(loss) before exceptional items	836	(1,635)	(799)		(1,974)	(505)	(2,479)
Exceptional items			2,997				(1,467)
Operating profit/(loss)			2,198				(3,946)
Finance income			447				95
Finance cost			(1,071)				(129)
Profit/(loss) before tax			1,574				(3,980)
Taxation			1,764				(226)
Profit/(loss) for the financial year			3,338				(4,206)

During the year there was £813,000 (2007: £338,000) of sales at arm’s length prices between segments. The revenue analysis above is stated net of inter-company sales.

The Group now manages and reports all export business through the marketing partner segment, including the export relationships it inherited with the acquisitions of Sinclair Pharma France and Sinclair Srl. The comparative figures for 2007 have been amended to reflect this reclassification.

Other segmental items included in the income statement are:

	2008				2007
	Marketing				Marketing
	partners	Direct	Total		partners	Direct	Total
Primary reporting format business sector	£'000	£'000	£'000		£'000	£'000	£'000
Depreciation	177	395	572		126	316	442
Intangible amortisation	107	1,376	1,483		82	893	975
Employee share-based payments	494	184	678		229	11	240
Segment and liabilities
	2008				2007
	Marketing				Marketing
	partners	Direct	Total		partners	Direct	Total
Primary reporting business sector	£'000	£'000	£'000		£'000	£'000	£'000
Segment assets	22,709	63,524	86,233		19,757	49,521	69,278
Unallocated assets			21				524
			86,254				69,802
Segment liabilities	6,059	11,908	17,967		5,197	5,732	10,929
Unallocated liabilities			1,956				485
			19,923				11,414
Capital expenditure	178	190	368		299	628	927
Purcahse of intantigibles	869	3,784	4,653		82	2,268	2,350

Unallocated assets and liabilities are cash and cash equivalents and borrowings in the Parent Company which are used to the benefit of the Group as a whole and therefore not allocated to a particular segment.

	2008				2007
		Rest of				Rest of
	UK	Europe	Total		UK	Europe	Total
Secondary reporting format by location	£'000	£'000	£'000		£'000	£'000	£'000
Segment assets	8,934	77,320	86,254		16,785	53,017	69,802
Capital expenditure	99	269	368		741	186	927
Purchase intangibles	869	3,784	4,653		376	1,974	2,350

The purchase of intangibles includes amounts capitalised as goodwill.

 

Revenue Analysis

By destination, the Group’s revenue derives from the UK, rest of Europe, USA and rest of world.

	2008	2007
	£'000	£'000
Untied Kingdom	2,450	2,077
Rest of Europe	18,517	15,878
United States of America	2,804	3,278
Rest of World	6,507	1,945
	30,278	23,178

 

An analysis of revenue by category is set out in the table below:
	2008	2007
	£'000	£'000
Product revenue	24,808	20,091
Royalties	660	747
Licence fees and milestones	4,810	2,340
	30,278	23,178

 

 

 

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