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Notes to the financial statements year ended 31 March 2010

5. Business and geographical segments

Segment revenues and results

IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the Chief Executive to allocate resources to the segments and to assess their performance. The Group is managed around three operating divisions - UK Membership, Continental Europe, and United States of America.

2010	UK Membership £000	Continental Europe £000	United States of America £000	Total £000
Revenue
Total revenue	286,650	86,511	25,676	398,837
Exceptional revenue	10,195	—	—	10,195
Joint venture revenues, not recognisable for statutory reporting	—	(29,842)	—	(29,842)
External sales	296,845	56,669	25,676	379,190
Inter-segment sales are charged at prevailing market prices.
Result
Segment operating profit pre amortisation of acquisition
intangibles, exceptional items and tax on joint ventures	95,754	7,200	1,483 1	104,437
Amortisation of acquisition intangibles	(1,258)	(3,778)	(1,448)	(6,484)
Tax on joint ventures	—	(2,049)	—	(2,049)
Exceptional revenue	10,195	—	—	10,195
Operating profit	104,691	1,373	35	106,099
Investment income				191
Finance costs				(4,054)
Profit before tax from continuing operations			102,236
Tax				(29,513)
Profit after tax from continuing operations				72,723
Loss from discontinued operations			(42,025)
Profit for the year				30,698

2009	Restated (note 4) UK Membership £000	Continental Europe £000	Restated (note 4) United States of America £000	Restated (note 4) Total £000
Re venue
Total revenue	246,609	63,404	17,919	327,932
Eliminations	(497)	—	—	(497)
Joint venture revenues, not recognisable for statutory reporting	—	(23,154)	—	(23,154)
External sales	246,112	40,250	17,919	304,281
Inter-segment sales are charged at prevailing market prices.
Result
Segment operating profit/(loss) pre amortisation of acquisition
intangibles, exceptional items and tax on joint ventures	87,228	5,347	(294)	92,281
Amortisation of acquisition intangibles	(984)	(1,244)	(1,436)	(3,664)
Tax on joint ventures	—	(1,941)	—	(1,941)
Exceptional operating costs	(2,317)	—	—	(2,317)
Operating profit/(loss)	83,927	2,162	(1,730)	84,359
Investment income				1,237
Finance costs				(4,808)
Profit after tax from continuing operations				80,788
Tax				(24,352)
Profit before tax from continuing operations				56,436
Loss from discontinued operations				(91,742)
Loss for the year				(35,306)

The accounting policies of the reportable segments are the same as the Group's accounting policies described in note 2, except that revenues attributable to the Group's share of its French joint venture are included in revenues within 'Continental Europe' for segmental reporting, but are not recognised for statutory reporting.

Segment profit represents the profit earned by each segment including allocating costs associated with head office and shared functions, but before allocating investment revenue and finance costs and income tax expense. This is the measure reported to the Group's Chief Executive for the purposes of resource allocation and assessment of segment performance.

Segment information

	Assets		Liabilities		Capital additions		Depreciation, amortisation and impairment
	2010 £000	2009 £000	2010 £000	2009 £000	2010 £000	2009 £000	2010 £000	2009 £000
Continuing operations
UK Membership	408,639	344,106	232,551	183,034	20,671	10,655	8,211	5,440
Continental Europe	104,897	46,996	60,224	15,888	702	522	4,463	2,881
United States of America	36,301	28,613	23,001	19,911	2,802	96	1,932	539
	549,837	419,715	315,776	218,833	24,175	11,273	14,606	8,860
Discontinued operations
United Kingdom	—	80,669	—	68,567	968	6,002	1,845	111,352
	549,837	500,384	315,776	287,400	25,143	17,275	16,451	120,212

All assets and liabilities are allocated to reportable segments.

Revenues from major products and services

	2010 £000	Restated (note 4) 2009 £000
Continuing operations
Sale of home assistance and emergency policies	291,492	236,712
Provision of repair services	87,698	68,066
Eliminations	—	(497)
	379,190	304,281
Discontinued operations
Provision of repair services	81,983	233,601
Consolidated revenue (excluding investment revenue)	461,173	537,882

Geographical information

The Group operates in three principal geographical areas - United Kingdom, Continental Europe and the United States of America. The Group's revenue from external customers and information about its segment assets (non-current assets excluding investments in joint ventures, deferred tax assets and other financial assets) by geographical location are detailed below:

	Revenue from external customers Restated (note 4)		Non-current assets
	2010 £000	2009 £000	2010 £000	2009 £000
Continuing operations
United Kingdom	296,845	246,112	212,383	168,513
Continental Europe	56,669	40,250	53,270	28,245
United States of America	25,676	17,919	13,842	11,977
	379,190	304,281	279,495	208,735
Discontinued operations
United Kingdom	81,983	233,601	—	45,264
	461,173	537,882	279,495	253,999

Information about major customers

There are no customers in either year from which the Group earns more than 10% of its revenues.