1. Segmental Analysis

The Group's operating segments under IFRS 8 have been determined based on management accounts reviewed by the Board. The performance of operating segments is assessed on profits before interest and tax, excluding equity settled share option charges recognised under IFRS 2 Share-Based Payment and unrealised foreign exchange gains or losses on derivatives which do not qualify for hedge accounting. The activities, products and services of the operating segments are detailed in the Business Model. The Property Management segment holds properties and property leases which are sub-let to other segments and external parties.

Segment sales and revenue

Year to January 2015
Total sales
excluding
VAT
£m
Commission
sales
adjustment
£m
External
Revenue
£m
Internal
Revenue
£m
Total
Segment
Revenue
£m
NEXT Retail*2,348.2(6.7)2,341.57.22,348.7
NEXT Directory*1,540.6(20.8)1,519.81,519.8
NEXT International Retail86.286.286.2
NEXT Sourcing7.57.5593.1600.6
3,982.5(27.5)3,955.0600.34,555.3
Lipsy*36.8(0.5)36.324.560.8
Property Management5.65.6196.6202.2
Total segment sales/revenues4,024.9(28.0)3,996.9821.44,818.3
Third party distribution2.92.92.9
Eliminations(821.4)(821.4)
Total4,027.8(28.0)3,999.83,999.8
Year to January 2014
Total sales
excluding
VAT
£m
Commission
sales
adjustment
£m
External
Revenue
£m
Internal
Revenue
£m
Total
Segment
Revenue
£m
NEXT Retail*2,240.5(0.8)2,239.76.12,245.8
NEXT Directory*1,373.9(17.4)1,356.51,356.5
NEXT International Retail85.685.685.6
NEXT Sourcing11.011.0560.2571.2
3,711.0(18.2)3,692.8566.34,259.1
Lipsy*35.335.320.555.8
Property Management4.84.8192.9197.7
Total segment sales/revenues3,751.1(18.2)3,732.9779.74,512.6
Third party distribution7.17.17.1
Eliminations(779.7)(779.7)
Total3,758.2(18.2)3,740.03,740.0

Where third party branded goods are sold on a commission basis, only the commission receivable is included in statutory revenue. Total Sales represents the amount paid by the customer, excluding VAT.

*Lipsy sales made through NEXT Retail and Directory are now reported in those divisions. For comparability, prior year figures have been restated resulting in £12.1m of Lipsy sales being re–allocated to NEXT Retail and £15.5m to Directory.

Segment profit2015
£m
2014
£m
NEXT Retail383.8347.7
NEXT Directory376.8358.5
NEXT International Retail11.712.1
NEXT Sourcing41.434.1
813.7752.4
Lipsy5.12.7
Property Management6.91.8
Total segment profit825.7756.9
Central costs and other(10.0)(14.9)
Share option charge(13.4)(15.8)
Unrealised foreign exchange gains/(losses)8.9(5.9)
Trading profit811.2720.3
Share of results of associates0.92.5
Finance income0.80.7
Finance costs(30.7)(28.3)
Profit before tax and exceptional items782.2695.2
Exceptional gains12.6
Profit before tax794.8695.2

Transactions between operating segments are made on an arm's length basis in a manner similar to those with third parties. Segment revenue and segment profit include transactions between business segments which are eliminated on consolidation. The substantial majority of NEXT Sourcing's revenues and profits are derived from sales to NEXT Retail and NEXT Directory.

Segment assets, capital expenditure and depreciation

Property, plant &
equipment
Capital
expenditure
Depreciation
2015
£m
2014
£m
2015
£m
2014
£m
2015
£m
2014
£m
NEXT Retail342.1347.891.488.096.2101.8
NEXT Directory81.380.713.58.413.011.8
NEXT International Retail1.10.90.60.40.30.4
NEXT Sourcing2.32.40.60.80.80.9
Lipsy2.34.70.91.51.9
Property Management74.172.54.16.60.10.1
Other0.10.20.20.10.1
Total503.3509.2110.2105.3112.0117.0

Analyses of the Group's external revenues (by customer location) and non-current assets (excluding investments, the defined benefit pension surplus, other financial assets and deferred tax assets) by geographical location are detailed below:

External revenue by geographical location2015
£m
2014
£m
United Kingdom3,648.03,447.0
Rest of Europe225.6197.7
Middle East60.446.5
Asia37.519.6
Rest of World28.329.2
3,999.83,740.0
Non-current assets by geographical location2015
£m
2014
£m
United Kingdom508.3514.1
Rest of Europe7.37.5
Middle East4.74.3
Asia27.027.6
Rest of World0.1
547.3553.6