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Revenue and segmental analysis
 12 Months Ended
Dec. 31, 2017
Disclosure of entity's operating segments [Abstract]  
Revenue and segmental analysis
Revenue and segmental analysis
For management purposes, the Group is organized into two reporting divisions, Gas Cylinders and Elektron. These divisions are aggregated from the six identified operating segments in the Group; Luxfer Gas Cylinders and Luxfer Superform aggregate to Gas Cylinders; and Luxfer MEL Technologies, Luxfer Magtech, Luxfer Graphic Arts and Luxfer Czech Republic aggregate to Elektron. The change in operating segments has come about with the change of CEO during 2017, and the way the group has been re-organized to reflect the common elements within the group. This rationale is in line with IFRS 8 which allows for aggregation of operating segments on the basis they share similar economic characteristics for the nature of the products and services; the nature of the production processes; the type or class of customer for their products and services; the methods used to distribute their products or provide their services; and the nature of the regulatory environment. For the purposes of impairment testing, the cash generating units (CGUs) have been assessed to be at the same level as the operating segments. The tables below set out information on the results of these two reportable divisions.
Management monitors the operating results of its operating segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated by the chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments and has been identified as the CEO, based on trading profit or loss (defined as operating profit or loss before profits on sale of redundant site, changes to defined benefit pension plans and restructuring and other expense), and adjusted EBITDA (defined as profit on operations before taxation for the period, finance income (which comprises interest received and foreign exchange gains) and costs (which comprises interest costs, IAS 19R retirement benefits finance charge and the unwind of the discount on deferred contingent consideration from acquisitions), net gain / loss on acquisitions and disposals of businesses, changes to defined benefit pension plans, restructuring and other expense, other share based compensation charges, depreciation and amortization and loss on disposal of property, plant and equipment). For the purposes of our divisional segmental analysis, IFRS 8 requires the use of "segment profit" performance measures that are used by our chief operating decision maker. Trading profit is the "segment profit" used to satisfy this requirement in the below analysis.
Unallocated assets and liabilities include those which are held on behalf of the Group and cannot be allocated to a division, such as taxation, investments, cash, retirement benefits obligations, bank and other loans and holding company assets and liabilities.

REPORTING SEGMENTS:
Year ended December 31, 2017
 
 
Gas
Cylinders
 
Elektron
 
Unallocated
 
Total
Continuing
Activities
 
 
 
$M
 
$M
 
$M
 
$M
 
 
Revenue
 

 
 

 
 

 
 

 
 
Segment revenue
220.2

 
221.6

 
—

 
441.8

 
 
Inter-segment revenue
—

 
(0.5
)
 
—

 
(0.5
)
 
 
Revenue to external customers
220.2

 
221.1

 
—

 
441.3

 
 
Result
 

 
 

 
 

 
 
 
 
Adjusted EBITDA
17.3

 
44.5

 
—

 
61.8

 
 
Other share based compensation charges
(1.0
)
 
(1.2
)
 
—

 
(2.2
)
 
 
Loss on disposal of property, plant and equipment
—

 
(0.1
)
 
—

 
(0.1
)
 
 
Depreciation and amortization
(7.6
)
 
(11.4
)
 
—

 
(19.0
)
 
 
Trading profit—segment result
8.7

 
31.8

 
—

 
40.5

 
 
Profit on sale of redundant site
—

 
—

 
0.4

 
0.4

 
 
Restructuring and other expense (Note 5)
(6.6
)
 
(12.7
)
 
(2.3
)
 
(21.6
)
 
 
Operating profit
2.1

 
19.1

 
(1.9
)
 
19.3

 
 
Acquisitions and disposals (Note 5)
—

 
1.3

 
—

 
1.3

 
 
Net interest costs
—

 
—

 
(6.7
)
 
(6.7
)
 
 
IAS 19R retirement benefits finance charge
—

 
—

 
(1.8
)
 
(1.8
)
 
 
Unwind of discount on deferred contingent consideration from acquisitions
—

 
(0.2
)
 
—

 
(0.2
)
 
 
Profit / (loss) on operations before taxation
2.1

 
20.2

 
(10.4
)
 
11.9

 
 
Tax expense
 

 
 

 
 
 
(0.4
)
 
 
Net income for the year
 

 
 

 
 

 
11.5

 
 
Other segment information
 

 
 

 
 

 
 
 
 
Segment assets
150.5

 
207.6

 
44.5

 
402.6

 
 
Segment liabilities
(22.6
)
 
(22.3
)
 
(195.4
)
 
(240.3
)
 
 
Net assets / (liabilities) employed(2)
127.9

 
185.3

 
(150.9
)
 
162.3

 
 
Capital expenditure: Property, plant and equipment
3.5

 
5.7

 
—

 
9.2

 
 
Capital expenditure: Intangible assets
1.4

 
0.3

 
—

 
1.7

 


Year ended December 31, 2016
 
 
Gas
Cylinders
 
Elektron
 
Unallocated
 
Total
Continuing
Activities
 
 
 
$M
 
$M
 
$M
 
$M
 
 
Revenue
 

 
 

 
 

 
 

 
 
Segment revenue
225.8

 
189.1

 
—

 
414.9

 
 
Inter-segment revenue
—

 
(0.1
)
 
—

 
(0.1
)
 
 
Revenue to external customers
225.8

 
189.0

 
—

 
414.8

 
 
Result
 

 
 

 
 

 
 
 
 
Adjusted EBITDA
19.7

 
35.6

 
—

 
55.3

 
 
Other share based compensation charges
(0.6
)
 
(0.8
)
 
—

 
(1.4
)
 
 
Loss on disposal of property, plant and equipment
(0.1
)
 
(0.1
)
 
—

 
(0.2
)
 
 
Depreciation and amortization
(7.6
)
 
(10.8
)
 
—

 
(18.4
)
 
 
Trading profit—segment result
11.4

 
23.9

 
—

 
35.3

 
 
Profit on sale of redundant site
—

 
—

 
2.1

 
2.1

 
 
Changes to defined benefit pension plans (Note 5)
—

 
—

 
0.6

 
0.6

 
 
Restructuring and other expense (Note 5)
—

 
(2.2
)
 
—

 
(2.2
)
 
 
Operating profit
11.4

 
21.7

 
2.7

 
35.8

 
 
Acquisitions and disposals (Note 5)
—

 
0.2

 
—

 
0.2

 
 
Net interest costs
—

 
—

 
(5.6
)
 
(5.6
)
 
 
IAS 19R retirement benefits finance charge
—

 
—

 
(2.1
)
 
(2.1
)
 
 
Unwind of discount on deferred contingent consideration from acquisitions
—

 
(0.4
)
 
—

 
(0.4
)
 
 
Profit / (loss) on operations before taxation
11.4

 
21.5

 
(5.0
)
 
27.9

 
 
Tax expense
 

 
 

 
 
 
(6.0
)
 
 
Net income for the year
 

 
 

 
 

 
21.9

 
 
Other segment information
 

 
 

 
 

 
 
 
 
Segment assets
146.8

 
190.6

 
54.1

 
391.5

 
 
Segment liabilities
(21.7
)
 
(14.2
)
 
(213.7
)
 
(249.6
)
 
 
Net assets / (liabilities) employed(2)
125.1

 
176.4

 
(159.6
)
 
141.9

 
 
Capital expenditure: Property, plant and equipment
6.5

 
10.0

 
—

 
16.5

 
 
Capital expenditure: Intangible assets
1.5

 
0.9

 
—

 
2.4

 
Year ended December 31, 2015
 
 
Gas
Cylinders
 
Elektron
 
Unallocated
 
Total
Continuing
Activities
 
 
 
$M
 
$M
 
$M
 
$M
 
 
Revenue
 
 
 
 
 
 
 
 
 
Segment revenue
239.1

 
221.8

 
—

 
460.9

 
 
Inter-segment revenue
—

 
(0.6
)
 
—

 
(0.6
)
 
 
Revenue to external customers
239.1

 
221.2

 
—

 
460.3

 
 
Result
 

 
 

 
 

 
 
 
 
Adjusted EBITDA
16.5

 
45.7

 
—

 
62.2

 
 
Other share based compensation charges
(0.7
)
 
(0.6
)
 
—

 
(1.3
)
 
 
Depreciation and amortization
(7.2
)
 
(11.4
)
 
—

 
(18.6
)
 
 
Trading profit—segment result
8.6

 
33.7

 
—

 
42.3

 
 
Changes to defined benefit pension plans (Note 5)
—

 
—

 
18.0

 
18.0

 
 
Restructuring and other expense (Note 5)
(21.9
)
 
(0.5
)
 
—

 
(22.4
)
 
 
Operating (loss)/profit
(13.3
)
 
33.2

 
18.0

 
37.9

 
 
Acquisitions and disposals (Note 5)
(0.2
)
 
—

 
(1.8
)
 
(2.0
)
 
 
Net interest costs
—

 
—

 
(6.9
)
 
(6.9
)
 
 
IAS 19R retirement benefits finance charge
—

 
—

 
(3.0
)
 
(3.0
)
 
 
Unwind of discount on deferred contingent consideration from acquisitions
—

 
(0.4
)
 
—

 
(0.4
)
 
 
(Loss)/profit on operations before taxation
(13.5
)
 
32.8

 
6.3

 
25.6

 
 
Tax expense
 

 
 

 
 
 
(9.5
)
 
 
Net income for the year
 

 
 

 
 

 
16.1

 
 
Other segment information
 

 
 

 
 

 
 
 
 
Segment assets
158.3

 
208.5

 
68.9

 
435.7

 
 
Segment liabilities
(32.3
)
 
(21.4
)
 
(212.3
)
 
(266.0
)
 
 
Net assets/(liabilities) employed(2)
126.0

 
187.1

 
(143.4
)
 
169.7

 
 
Capital expenditure: Property, plant and equipment
6.0

 
9.3

 
—

 
15.3

 
 
Capital expenditure: Intangible assets
1.2

 
0.9

 
—

 
2.1

 

GEOGRAPHIC ORIGIN:
Year ended December 31, 2017
 
 
United
Kingdom
 
Rest of
Europe
 
North
America
 
Australasia
 
Asia
 
Total
 
 
 
$M
 
$M
 
$M
 
$M
 
$M
 
$M
 
 
Revenue
 

 
 

 
 

 
 

 
 

 
 

 
 
Segment revenue
162.6

 
48.6

 
275.9

 
0.1

 
2.7

 
489.9

 
 
Inter-segment revenue
(23.1
)
 
(1.5
)
 
(24.0
)
 
—

 
—

 
(48.6
)
 
 
Revenue to external customers
139.5

 
47.1

 
251.9

 
0.1

 
2.7

 
441.3

 
 
Result
 

 
 

 
 

 
 

 
 

 
 
 
 
Adjusted EBITDA
16.2

 
1.3

 
44.1

 
0.1

 
0.1

 
61.8

 
 
Other share based compensation charges
(1.4
)
 
—

 
(0.8
)
 
—

 
—

 
(2.2
)
 
 
Loss on disposal of property, plant and equipment
—

 
(0.1
)
 
—

 
—

 
—

 
(0.1
)
 
 
Depreciation and amortization
(5.9
)
 
(2.4
)
 
(10.7
)
 
—

 
—

 
(19.0
)
 
 
Trading profit/(loss)—segment result
8.9

 
(1.2
)
 
32.6

 
0.1

 
0.1

 
40.5

 
 
Sale of redundant site
0.4

 
—

 
—

 
—

 
—

 
0.4

 
 
Restructuring and other expense (Note 5)
(14.4
)
 
(2.3
)
 
(4.9
)
 
—

 
—

 
(21.6
)
 
 
Operating (loss) / profit
(5.1
)
 
(3.5
)
 
27.7

 
0.1

 
0.1

 
19.3

 
 
Other geographical segment information
 

 
 

 
 

 
 

 
 

 
 
 
 
Non-current assets(1)
74.3

 
14.2

 
142.5

 
—

 
0.3

 
231.3

 
 
Net assets employed(2)
10.0

 
30.7

 
118.8

 
—

 
2.8

 
162.3

 
 
Capital expenditure: Property, plant and equipment
4.4

 
0.7

 
4.1

 
—

 
—

 
9.2

 
 
Capital expenditure: Intangible assets
1.4

 
—

 
0.3

 
—

 
—

 
1.7

 
Year ended December 31, 2016
 
 
United
Kingdom
 
Rest of
Europe
 
North
America
 
Australasia
 
Asia
 
Total
 
 
 
$M
 
$M
 
$M
 
$M
 
$M
 
$M
 
 
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment revenue
142.6

 
39.1

 
282.5

 
0.1

 
3.4

 
467.7

 
 
Inter-segment revenue
(28.6
)
 
(1.6
)
 
(22.7
)
 
—

 
—

 
(52.9
)
 
 
Revenue to external customers
114.0

 
37.5

 
259.8

 
0.1

 
3.4

 
414.8

 
 
Result
 

 
 

 
 

 
 

 
 

 
 
 
 
Adjusted EBITDA
17.4

 
(0.4
)
 
37.8

 
0.1

 
0.4

 
55.3

 
 
Other share based compensation charges
(1.0
)
 
—

 
(0.4
)
 
—

 
—

 
(1.4
)
 
 
Loss on disposal of property, plant and equipment
—

 
(0.1
)
 
(0.1
)
 
—

 
—

 
(0.2
)
 
 
Depreciation and amortization
(5.7
)
 
(2.3
)
 
(10.3
)
 
—

 
(0.1
)
 
(18.4
)
 
 
Trading profit/(loss)—segment result
10.7

 
(2.8
)
 
27.0

 
0.1

 
0.3

 
35.3

 
 
Sale of redundant site
2.1

 
—

 
—

 
—

 
—

 
2.1

 
 
Changes to defined benefit pension plans
—

 
—

 
0.6

 
—

 
—

 
0.6

 
 
Restructuring and other expense (Note 5)
(0.6
)
 
—

 
(1.6
)
 
—

 
—

 
(2.2
)
 
 
Operating profit/(loss)
12.2

 
(2.8
)
 
26.0

 
0.1

 
0.3

 
35.8

 
 
Other geographical segment information
 

 
 

 
 

 
 

 
 

 
 
 
 
Non-current assets(1)
77.5

 
13.8

 
143.9

 
—

 
0.2

 
235.4

 
 
Net assets employed(2)
6.9

 
19.7

 
112.3

 
0.3

 
2.7

 
141.9

 
 
Capital expenditure: Property, plant and equipment
6.7

 
1.2

 
8.6

 
—

 
—

 
16.5

 
 
Capital expenditure: Intangible assets
2.0

 
—

 
0.4

 
—

 
—

 
2.4

 
Year ended December 31, 2015
 
 
United
Kingdom
 
Rest of
Europe
 
North
America
 
Australasia
 
Asia
 
Total
 
 
 
$M
 
$M
 
$M
 
$M
 
$M
 
$M
 
 
Revenue
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment revenue
145.0

 
62.4

 
299.6

 
0.1

 
3.9

 
511.0

 
 
Inter-segment revenue
(27.0
)
 
(2.9
)
 
(20.8
)
 
—

 
—

 
(50.7
)
 
 
Revenue to external customers
118.0

 
59.5

 
278.8

 
0.1

 
3.9

 
460.3

 
 
Result
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted EBITDA
13.6

 
1.3

 
46.5

 
0.2

 
0.6

 
62.2

 
 
Other share based compensation charges
(1.0
)
 
—

 
(0.3
)
 
—

 
—

 
(1.3
)
 
 
Depreciation and amortization
(6.1
)
 
(2.3
)
 
(10.1
)
 
—

 
(0.1
)
 
(18.6
)
 
 
Trading profit/(loss)—segment result
6.5

 
(1.0
)
 
36.1

 
0.2

 
0.5

 
42.3

 
 
Changes to defined benefit pension plans
18.0

 
—

 
—

 
—

 
—

 
18.0

 
 
Restructuring and other expense (Note 5)
(8.0
)
 
(7.8
)
 
(6.6
)
 
—

 
—

 
(22.4
)
 
 
Operating profit/(loss)
16.5

 
(8.8
)
 
29.5

 
0.2

 
0.5

 
37.9

 
 
Other geographical segment information
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-current assets(1)
67.8

 
14.5

 
147.6

 
—

 
0.3

 
230.2

 
 
Net assets employed(2)
19.7

 
23.7

 
122.6

 
0.3

 
3.4

 
169.7

 
 
Capital expenditure: Property, plant and equipment
5.5

 
1.4

 
8.4

 
—

 
—

 
15.3

 
 
Capital expenditure: Intangible assets
1.7

 
—

 
0.4

 
—

 
—

 
2.1

 
(1) 
The Group's non-current assets analyzed by geographic origin include property, plant and equipment, intangible assets and investments.
(2) 
Represents net assets employed—excluding inter-segment assets and liabilities.

GEOGRAPHIC DESTINATION:
 
 
United
Kingdom
 
Rest of
Europe
 
Africa
 
North
America
 
South
America
 
Asia
Pacific
 
Total
 
 
 
$M
 
$M
 
$M
 
$M
 
$M
 
$M
 
$M
 
 
Revenue—Continuing activities
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 
Year ended December 31, 2017
40.7

 
102.9

 
3.0

 
238.7

 
8.6

 
47.4

 
441.3

 
 
Year ended December 31, 2016
36.4

 
94.2

 
2.4

 
226.3

 
9.9

 
45.6

 
414.8

 
 
Year ended December 31, 2015
53.5

 
98.9

 
2.7

 
245.9

 
13.4

 
45.9

 
460.3