5. Segmental information

The Group’s operations are organised and managed separately according to the nature of the services provided, with each segment representing a strategic business unit offering a different package of related services across the Group’s markets. A description of the service provision for each segment can be found in the business review.

Before eliminating sales between business units on consolidation, the Group accounts for sales between business units as if they were to a third party at market rates.

The tables below present revenue, result and certain asset and liability information for the Group’s business segments for the years 2008 and 2007. All operations in 2008 are continuing.

Year ended 31 December 2008

Segment revenue	HR Solutions £m	Property Consultancy £m	Insurance Services £m	Investor Services £m	Integrated Services £m	ICT & Partnership Services £m	Life & Pensions £m	Professional Services £m	Total £m
Total segment revenue	278.5	284.2	263.6	173.9	393.4	464.8	489.0	378.9	2,726.3
Inter-segment revenue	(20.3)	(22.0)	(17.4)	–	(6.0)	(125.4)	(26.1)	(67.7)	(284.9)
Third party revenue	258.2	262.2	246.2	173.9	387.4	339.4	462.9	311.2	2,441.4
Segment result
Result after depreciation	25.3	24.0	32.7	40.3	58.4	35.7	56.5	57.2	330.1
Share based payment	(1.1)	(1.2)	(1.6)	(0.7)	(2.3)	(0.7)	(0.8)	(0.8)	(9.2)
Intangible amortisation	(0.2)	(1.4)	(3.7)	(3.7)	(1.2)	(1.6)	(3.5)	(3.3)	(18.6)
	24.0	21.4	27.4	35.9	54.9	33.4	52.2	53.1	302.3
Net finance costs (before callable swaps)									(43.5)
Callable swaps									(32.0)
Investment loss									(0.2)
Profit before tax									226.6
Corporation taxation									(60.8)
Profit after tax									165.8
Other segment information
Assets by segment
Assets	50.9	83.5	121.8	74.4	118.7	124.2	219.6	45.0	838.1
Intangible assets	84.3	63.2	244.3	179.6	39.8	45.9	111.3	138.6	907.0
	135.2	146.7	366.1	254.0	158.5	170.1	330.9	183.6	1,745.1
Liabilities	(27.8)	(48.8)	(135.3)	(42.1)	(123.5)	(110.2)	(103.4)	(164.5)	(755.6)
Net allocated assets	107.4	97.9	230.8	211.9	35.0	59.9	227.5	19.1	989.5
Unallocated assets									419.2
Unallocated liabilities									(1,011.8)
Total net assets									396.9
Capital expenditure
Tangible assets	1.5	2.2	7.6	17.9	10.0	12.2	34.1	5.4	90.9
Depreciation charge	1.3	2.9	4.2	2.8	19.8	6.2	7.7	5.1	50.0
Intangible assets	–	9.5	23.1	9.4	0.1	43.0	26.1	70.2	181.4
Intangible amortisation	0.2	1.4	3.7	3.7	1.2	1.6	3.5	3.3	18.6

Unallocated assets include held for sale financial assets, financial assets held at fair value through the income statement, the cash flow hedge financial asset, cash in bank, currency and interest rate swaps. Unallocated liabilities include lease obligations, loan notes, callable swaps, bonds and the pension liability.

The tables below present revenue by the geographical location of customers, carrying amount of assets and expenditure on tangible and intangible assets by location of those assets.

Revenue	United Kingdom £m	Non-United Kingdom £m	Total £m
Total segment revenue	2,639.5	86.8	2,726.3
Inter-segment revenue	(265.3)	(19.6)	(284.9)
Third party revenue	2,374.2	67.2	2,441.4
Other segment information
Assets	806.7	31.4	838.1
Intangible assets	859.5	47.5	907.0
Unallocated assets	419.2	–	419.2
Total assets	2,085.4	78.9	2,164.3
Capital expenditure
Tangible assets	85.1	5.8	90.9
Intangible assets	164.6	16.8	181.4

Year ended 31 December 2007

Segment revenue	HR Solutions £m	Property Consultancy £m	Insurance Services £m	Investor Services £m	Integrated Services £m	ICT & Partnership Services £m	Life & Pensions £m	Professional Services £m	Total £m
Total segment revenue	243.2	244.6	260.5	158.2	413.2	352.0	274.1	340.7	2,286.5
Inter-segment revenue	(18.2)	(12.7)	(19.0)	(1.3)	(8.2)	(92.5)	(10.5)	(50.8)	(213.2)
Third party revenue	225.0	231.9	241.5	156.9	405.0	259.5	263.6	289.9	2,073.3
Segment result
Result after depreciation	22.3	20.4	30.3	37.9	58.3	28.3	33.7	48.7	279.9
Share based payment	(1.0)	(1.1)	(1.2)	(0.6)	(2.5)	(0.6)	(0.8)	(0.8)	(8.6)
Intangible amortisation	(0.1)	(0.7)	(2.6)	(1.3)	(1.6)	–	(1.5)	(1.9)	(9.7)
	21.2	18.6	26.5	36.0	54.2	27.7	31.4	46.0	261.6
Net finance costs									(34.1)
Investment income									1.2
Profit before tax									228.7
Corporation taxation									(62.5)
Profit after tax									166.2
Other segment information
Assets by segment
Assets	41.8	72.0	142.8	59.0	141.8	61.4	119.6	53.0	691.4
Intangible assets	84.5	55.0	226.3	173.9	40.9	4.6	88.2	72.3	745.7
	126.3	127.0	369.1	232.9	182.7	66.0	207.8	125.3	1,437.1
Liabilities	(19.7)	(28.4)	(127.3)	(52.9)	(117.0)	(69.6)	(86.2)	(113.6)	(614.7)
Net allocated assets/(liabilities)	106.6	98.6	241.8	180.0	65.7	(3.6)	121.6	11.7	822.4
Unallocated assets									53.5
Unallocated liabilities									(544.1)
Total net assets									331.8
Capital expenditure
Tangible assets	1.8	2.7	2.9	3.7	19.0	8.8	23.4	5.6	67.9
Depreciation charge	0.9	2.7	3.6	2.0	21.4	4.9	5.8	4.8	46.1
Intangible assets	2.4	0.9	41.6	18.0	23.9	–	27.1	13.0	126.9
Intangible amortisation	0.1	0.7	2.7	1.2	1.6	–	1.9	1.5	9.7

The tables below present revenue by the geographical location of clients, carrying amount of assets and expenditure on tangible and intangible assets by location of those assets.

Revenue	United Kingdom £m	Non-United Kingdom £m	Total £m
Total segment revenue	2,217.5	69.0	2,286.5
Inter-segment revenue	(203.8)	(9.4)	(213.2)
Third party revenue	2,013.7	59.6	2,073.3
Other segment information
Assets	665.0	26.4	691.4
Intangible assets	712.1	33.6	745.7
Unallocated assets	53.5	–	53.5
Total assets	1,430.6	60.0	1,490.6
Capital expenditure
Tangible assets	62.5	5.4	67.9
Intangible assets	109.6	17.3	126.9