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Revenue recognition and operating segments (Tables)

12 Months Ended

Dec. 31, 2022

Revenue recognition and operating segments


				Operating		Operating		Operating
	Revenue	Revenue¹	Revenue¹	profit		profit¹		profit¹
	2022	2021	2020	2022		2021		2020
	£m	£m	£m	£m		£m		£m
North America²
Pest Control	1,746	1,149	979	297		187		131
Hygiene & Wellbeing	103	142	218	18		29		78
	1,849	1,291	1,197	315		216		209
Europe (incl. LATAM)
Pest Control	427	350	324	103		92		75
Hygiene & Wellbeing	322	316	330	53		54		59
France Workwear	192	166	173	31		17		19
	941	832	827	187		163		153
UK & Sub-Saharan Africa
Pest Control	187	176	163	48		46		37
Hygiene & Wellbeing	183	183	164	48		49		22
	370	359	327	96		95		59
Asia & MENAT
Pest Control	231	187	171	34		25		20
Hygiene & Wellbeing	90	84	92	11		11		16
	321	271	263	45		36		36
Pacific
Pest Control	104	90	81	16		14		15
Hygiene & Wellbeing	123	107	97	32		25		20
	227	197	178	48		39		35
Central and regional overheads	6	7	11	(108)		(97)		(95)
Restructuring costs	—	—	—	(12)		(10)		(13)
Revenue and Adjusted Operating Profit	3,714	2,957	2,803	571		442		384
Adjusted Operating Profit Margin				15.4	%	14.9	%	13.7	%
One-off and adjusting items				(136)		(21)		(8)
Amortisation and impairment of intangible assets³				(118)		(74)		(82)
Operating Profit				317		347		294
Operating Profit Margin				8.5	%	11.7	%	10.5	%
Share of profit from associates (net of tax)				9		8		8
Net adjusted interest payable				(48)		(34)		(37)
Net interest adjustments				18		4		(35)
Profit Before Tax				296		325		230
Net interest adjustments				(18)		(4)		35
One-off and adjusting items				136		21		8
Amortisation and impairment of intangible assets³				118		74		82
Adjusted Profit Before Tax				532		416		355

1.	During 2022, internal management reporting structures changed and revenue and profit have been represented for 2020 and 2021 under the new structure.

2.	During 2022 there were impairment losses recognised in North America of £17m (2021: £nil; 2020: £nil) related to ROU assets and £8m (2021: £nil; 2020: £nil) related to property, plant and equipment.

3.	Excluding computer software.


				Operating	Operating	Operating
	Revenue	Revenue	Revenue¹	profit	profit	profit¹
	2022	2021	2020	2022	2021	2020
	£m	£m	£m	£m	£m	£m
Pest Control	2,695	1,952	1,718	498	364	278
Hygiene & Wellbeing	821	832	901	162	168	195
France Workwear	192	166	173	31	17	19
Total business segments	3,708	2,950	2,792	691	549	492
Central and regional overheads	6	7	11	(108)	(97)	(95)
Restructuring costs	—	—	—	(12)	(10)	(13)
Revenue and Adjusted Operating Profit	3,714	2,957	2,803	571	442	384
One-off and adjusting items				(136)	(21)	(8)
Amortisation and impairment of intangible assets²				(118)	(74)	(82)
Operating Profit				317	347	294

1.	During 2022, internal management reporting structures changed and revenue and profit have been represented for 2020 and 2021 under the new structure.

2.	Excluding computer software.

Schedule of organic revenue growth measures


	Organic Revenue Growth				Organic Revenue Growth
	excluding disinfection				including disinfection
	2022		2021		2022		2021
	%		%		%		%
North America	5.7	%	8.7	%	3.2	%	1.5	%
Europe (incl. LATAM)	9.1	%	4.7	%	6.3	%	1.9	%
UK & Sub-Saharan Africa	4.7	%	12.3	%	2.9	%	9.9	%
Asia & MENAT	11.0	%	5.8	%	6.8	%	4.9	%
Pacific	7.9	%	6.4	%	7.5	%	6.3	%
Group	6.6	%	7.0	%	4.2	%	2.9	%

Pest Control	5.6	%	8.2	%	5.6	%	8.2	%
Hygiene & Wellbeing	9.3	%	7.2	%	(4.0)	%	(5.7)	%
France Workwear	16.6	%	1.5	%	16.6	%	1.5	%
Group	6.6	%	7.0	%	4.2	%	2.9	%

Schedule of revenue and non-current assets by countries


		Non-current		Non-current		Non-current
	Revenue	assets¹	Revenue	assets¹	Revenue	assets¹
	2022	2022	2021	2021	2020	2020
	£m	£m	£m	£m	£m	£m
UK	296	192	292	180	260	176
USA	1,786	7,033	1,240	1,768	1,153	1,550
France	338	268	306	234	310	249
Australia	166	132	149	120	132	114
India	58	83	54	81	49	82
Spain	56	76	46	42	44	41
Other countries	1,014	688	870	454	855	411
Total	3,714	8,472	2,957	2,879	2,803	2,623

1.	Non-current assets include intangible assets, property, plant and equipment, right-of-use assets, contract cost assets and non-current other receivables.

Schedule of analysis of revenue by business segment and by Type


	Revenue	Revenue	Revenue
	2022	2021	2020
	£m	£m	£m
Recognised over time
Contract service revenue	2,610	2,009	1,878
Recognised at a point in time
Job work	724	641	651
Sales of goods	380	307	274
Total	3,714	2,957	2,803

Schedule of analysis of one-off operating items


	One-off and adjusting items	One-off and adjusting items	One-off and adjusting items
	cost/(income)	tax impact	cash inflow/(outflow)
	£m	£m	£m
2020
Acquisition and integration costs	15	(3)	(15)
Pension scheme closure in North America	(7)	2	—
UK pension scheme – return of surplus¹	—	—	9
Other	—	(1)	4
Total	8	(2)	(2)

2021
Acquisition and integration costs	13	(1)	(12)
Terminix acquisition costs	6	—	(6)
Other	2	(1)	(9)
Total	21	(2)	(27)

2022
Acquisition and integration costs	5	(2)	(13)
Fees relating to Terminix acquisition	68	(4)	(38)
Terminix integration costs	62	(14)	(32)
UK pension scheme – return of surplus¹	—	—	22
Other	1	—	2
Total	136	(20)	(59)

1.More information about the UK pension scheme buy-out can be found in Note A10.

Schedule of other segment items included in the consolidated income statement


	Amortisation and	Amortisation and	Amortisation and
	impairment of	impairment of	impairment of
	intangibles¹	intangibles¹	intangibles¹
	2022	2021	2020
	£m	£m	£m
North America	59	34	30
Europe (incl. LATAM)	29	14	15
UK & Sub-Saharan Africa	—	9	9
Asia & MENAT	20	7	17
Pacific	4	4	4
Central and regional	6	6	7
Disposed businesses	—	—	—
Total	118	74	82
Tax effect	(25)	(18)	(18)
Total after tax effect	93	56	64

1.	Excluding computer software.