The group’s revenue predominantly arises from the provision of services.
The group is organised into two principal operating divisions for management purposes, being regulated and non-regulated activities. These divisions form the basis on which the operating segment information, presented in accordance with IFRS 8 ‘Operating Segments’, is reported. The comparative figures for the year ended 31 March 2009 have been restated in accordance with IFRS 8.
The regulated activities segment is as previously reported and includes the regulated results of United Utilities Water PLC.
The non-regulated activities segment is as previously reported and includes the group’s utility outsourcing contracts in the United Kingdom and overseas.
The ‘all other segments’ category was previously reported as the group’s other activities segment. This category includes the results of United Utilities Property Services Limited (formerly United Utilities Property Solutions Limited), United Utilities Group PLC and other group holding companies.
The disclosure correlates with the information provided to the United Utilities Group PLC board of directors (the ‘board’) for the purposes of assessing performance and allocating resources. The board reviews revenue, underlying operating profit and operating profit by segment, but assets and liabilities are reviewed at a consolidated level. Investment income and finance expense, and taxation are managed on a group basis and are not allocated to operating segments.
Trading between segments is carried out on an arm’s length basis and transactions are priced accordingly. External market prices are used where available; where not available, margins generated are compared to those generated from external sales and adjusted where necessary.
For further information on the pension schemes curtailment gains arising on amendment of pension obligations see note 20.
For further information on the group’s discontinued operations see note 8.
Segment results and assets include items directly attributable to a segment as well as those that can be allocated on a reasonable basis.
*Segmental non-current assets exclude financial instruments.
The group does not rely on any major customers.