Sinclair

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4 Segmental information

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


	2009			2008
Business segments	International operations £’000	Country operations £’000	Total £’000	International operations £’000	Country operations £’000	Total £’000
Revenue	18,032	12,376	30,408	16,540	13,738	30,278
Segment operating profit/(loss) before exceptional items	1,905	(2,213)	(308)	836	(1,635)	(799)
Exceptional items			(2,428)			2,997
Operating (loss)/profit			(2,736)			2,198
Finance income			131			447
Finance costs			(1,433)			(1,071)
(Loss)/profit before tax			(4,038)			1,574
Taxation			417			1,764
(Loss)/profit for the financial year			(3,621)			3,338
During the year there was £828,000 (2008: £813,000) of sales at arms length prices between segments. The revenue analysis above is stated net of inter‑company sales. Other segmental items included in the income statement are:

	2009			2008
Primary reporting format business sector	International operations £’000	Country operations £’000	Total £’000	International operations £’000	Country operations £’000	Total £’000
Depreciation	201	292	493	177	395	572
Intangible amortisation	434	1,650	2,084	107	1,376	1,483
Employee share-based payments	574	(1)	573	494	184	678

Segment assets and liabilities	2009			2008
Primary reporting format business sector	International operations £’000	Country operations £’000	Total £’000	International operations £’000	Country operations £’000	Total £’000
Segment assets	26,616	61,045	87,661	22,709	63,524	86,233
Unallocated assets			17			21
			87,678			86,254
Segment liabilities	6,785	10,791	17,576	6,059	11,908	17,967
Unallocated liabilities			2,744			1,956
			20,320			19,923
Capital expenditure	158	182	340	178	190	368
Purchase of intangibles	6,694	404	7,098	869	3,784	4,653
Unallocated assets and liabilities are cash and cash equivalents and borrowings and other loans in the Parent Company which are used to the benefit of the Group as a whole and therefore not allocated to a particular segment. The Group’s secondary segment reporting format is based on geographical location as set out below:

	2009			2008
Secondary reporting format by location	UK £’000	Rest of Europe £’000	Total £’000	UK £’000	Rest of Europe £’000	Total £’000
Segment assets	11,882	75,796	87,678	8,934	77,320	86,254
Capital expenditure	12	328	340	99	269	368
Purchase of intangibles	6,694	404	7,098	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.

	2009	2008
	£’000	£’000
United Kingdom	1,129	2,450
Rest of Europe	18,319	18,517
United States of America	7,280	2,804
Rest of World	3,680	6,507
	30,408	30,278
An analysis of revenue by category is set out in the table below:
	2009	2008
	£’000	£’000
Product revenue	21,999	24,808
Royalties	985	660
Licence fees and milestones	7,424	4,810
	30,408	30,278

Annual report

4 Segmental information