The following information has been extracted from the segmental report for 2006 for Carpetright plc, a leading carpet retailer. Segmental analysis The Group's primary reporting segment is geographic, as this is the basis on which the Group is organised and managed. The Group does not report a secondary segment on the basis of business operations because business operations throughout the Group are the same. The geographical sectors are: United Kingdom & Republic of Ireland (UK & Rol), and Poland, Belgium and The Netherlands ("Rest of Europe'). Central costs are incurred principally in the UK and are immaterial. As such these costs are included within the UK & Rol segment. Segment revenue, expense, result, assets and liabilities include transfers between geographical segments. Such transfers are priced at arm's length and are eliminated on consolidation.

Required:
Analyse the performance of each of the major segments in so far as the information allows.

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Analysis by geography 2006 2005 UK & Rol Rest of Group UK & Rol Rest of Group Europe Europe m Em Em Em Em Em Gross Revenue Inter-segment revenue 400.7 53.7 454.4 411.8 53.3 465.1 (3.0) (3.0) (2.8) = (2.6) Segment revenue (by origin and destination) 397.7 53.7 451.4 409.2 53.3 462.5 Gross profit 241.2 29.7 270.9 245.2 27.8 273.0 Operating profit before exceptional items 55.1 3.6 58.7 60.4 3.0 63.4 Segment result: operating 62.6 3.6 66.2 71.4 3.0 74.4 profit after exceptional items Net interest payable Profit before taxation Taxation Profit for the financial period Other non-cash expenses: and equipment Depreciation of property, plant Depreciation of investment property Amortisation of intangible assets Impairment of goodwill 9.9 2.2 0.1 0.3 1.1 - 0.4 220 ' (2.0) (1.9) (20.1) (23.2) 49.3 9.5 2.3 11.8 - 0.4 0.5 III Share-based payments 0.2 1820 0.4 0.5 0.2 Segment assets: Groes assets (by origin and destination). 163.1 74.8 237.9 151.9 64.2 Inter-segment balances (0.4) (0.4) (4.0) ' Total segment assets 162.7 74.8 237.5 147.9 64.2 216.1 (4.0 212.1 Segment liabilities: Gross liabilities (by origin and destination) 110.0 15.0 125.0 100.9 15.8 116.7 Inter-segment balances (0.4) (0.4) (4.0) (4.0) Total segment liabilities 110.0 14.6 124.6 100.9 11.8 112.7 Capital expenditure: Capital expenditure (by origin and destination) 30.8 4.3 35.1 23.6 9.5 33.1 Source: Carpetright plc Annual Report and Accounts 2000.