SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2017

Disclosure of operating segments [abstract]

SEGMENT INFORMATION

2. SEGMENT INFORMATION

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating decision-maker, who is responsible for allocating resources and assessing the performance of the operating segments, has been identified as the Board of Directors. Management has determined the operating segments based on the reports reviewed by the Board of Directors, which are used to make strategic decisions. The Board considers the business from a geographic perspective based on the Group’s management and internal reporting structure. Sales of product between companies in the Group are made on commercial terms which reflect the nature of the relationship between the relevant companies. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items comprise interest-bearing loans, borrowings and expenses and corporate expenses. Segment capital expenditure is the total cost during the year to acquire segment plant, property and equipment and intangible assets that are expected to be used for more than one period, whether acquired on acquisition of a business combination or through acquisitions as part of the current operations.

The Group comprises two main geographical segments (i) the Americas and (ii) Rest of World. The Group’s geographical segments are determined by the location of the Group’s assets and operations. The Group has also presented a geographical analysis of the segmental data for Ireland as is consistent with the information used by the Board of Directors.

The reportable operating segments derive their revenue primarily from one source (i.e. the market for diagnostic tests for a range of diseases and other medical conditions). In determining the nature of its segmentation, the Group has considered the nature of the products, their risks and rewards, the nature of the production base, the customer base and the nature of the regulatory environment. The Group acquires, manufactures and markets a range of diagnostic products. The Group’s products are sold to a similar customer base and the main body whose regulation the Group’s products must comply with is the Food and Drug Administration (“FDA”) in the US.

The following presents revenue and profit information and certain asset and liability information regarding the Group’s geographical segments.

i) The distribution of revenue by geographical area based on location of assets was as follows:

			Rest of World
Revenue	Americas		Ireland		Other		Eliminations			Total
Year ended December 31, 2017	US$‘000		US$‘000		US$‘000		US$’000			US$‘000
Revenue from external customers		66,092		33,048		—		—			99,140
Inter-segment revenue		42,147		3,587		—		(45,734	)		—
Total revenue		108,239		36,635		—		(45,734	)		99,140
			Rest of World
	Americas		Ireland		Other		Eliminations			Total
Year ended December 31, 2016	US$‘000		US$‘000		US$‘000		US$’000			US$‘000
Revenue from external customers		63,889		35,718		4		—			99,611
Inter-segment revenue		39,322		5,349		348		(45,019	)		—
Total revenue		103,211		41,067		352		(45,019	)		99,611
			Rest of World
	Americas		Ireland		Other		Eliminations			Total
Year ended December 31, 2015	US$‘000		US$‘000		US$‘000		US$’000			US$‘000
Revenue from external customers		60,431		38,521		1,243		—			100,195
Inter-segment revenue		38,996		6,750		10,484		(56,230	)		—
Total revenue		99,427		45,271		11,727		(56,230	)		100,195

ii) The distribution of revenue by customers’ geographical area was as follows:

Revenue	December 31, 2017 US$‘000		December 31, 2016 US$‘000		December 31, 2015 US$‘000
Americas		59,539		61,613		62,421
Asia / Africa		27,131		25,501		22,346
Europe (including Ireland) *		12,470		12,497		15,428
		99,140		99,611		100,195

* Revenue from customers in Ireland is not disclosed separately due to the immateriality of these revenues.

iii) The distribution of revenue by major product group was as follows:

Revenue	December 31, 2017 US$‘000		December 31, 2016 US$‘000		December 31, 2015 US$‘000
Clinical laboratory		73,366		74,166		73,576
Point-of-Care		16,774		16,908		18,810
Laboratory services		9,000		8,537		7,809
		99,140		99,611		100,195

iv) The distribution of segment results by geographical area was as follows:

				Rest of World
	Americas			Ireland			Other			Total
Year ended December 31, 2017	US$‘000			US$‘000			US$‘000			US$‘000
Result before impairment		3,744			1,125			(44	)		4,825
Impairment		(9,194	)		(32,561	)		—			(41,755	)
Result after impairment		(5,450	)		(31,436	)		(44	)		(36,930	)
Unallocated expenses *											(738	)
Operating loss											(37,668	)
Net financing expense (Note 3)											(2,207	)
Loss before tax											(39,875	)
Income tax credit (Note 9)											1,214
Loss for the year on continuing operations											(38,661	)
Loss for the year on discontinued operations (Note 10)											(1,609	)
Loss for the year											(40,270	)

				Rest of World
	Americas			Ireland			Other		Total
Year ended December 31, 2016	US$‘000			US$‘000			US$‘000		US$‘000
Result before exceptional expenses		4,564			4,270			384		9,218
Impairment		(22,989	)		(20,390	)		—		(43,379	)
Inventory provision		(335	)		(4,451	)		—		(4,786	)
Result after exceptional expenses		(18,760	)		(20,571	)		384		(38,947	)
Unallocated expenses *										(901	)
Operating profit										(39,848	)
Net financing expense (Note 3)										(2,292	)
Loss before tax										(42,140	)
Income tax credit (Note 9)										3,557
Loss for the year on continuing operations										(38,583	)
Loss for the year on discontinued operations (Note 10)										(62,042	)
Loss for the year										(100,625	)

			Rest of World
	Americas		Ireland		Other		Total
Year ended December 31, 2015	US$‘000		US$‘000		US$‘000		US$‘000
Result		4,183		9,782		524		14,489
Unallocated expenses *								(983	)
Operating profit								13,506
Net financing income (Note 3)								9,437
Profit before tax								22,943
Income tax expense (Note 9)								(756	)
Profit for the year on continuing operations								22,187
Loss for the year on discontinued operations (Note 10)								(391	)
Profit for the year								21,796

* Unallocated expenses represent head office general and administration costs of the Group which cannot be allocated to the results of any specific geographical area.

v) The distribution of segment assets and segment liabilities by geographical area was as follows:

			Rest of World
	Americas		Ireland		Other		Total
As at December 31, 2017	US$‘000		US$‘000		US$‘000		US$‘000
Assets and liabilities
Segment assets		88,714		36,513		3		125,230
Unallocated assets:
Income tax assets (current and deferred)								10,137
Cash and cash equivalents and short-term investments								57,607
Total assets as reported in the Group balance sheet								192,974
Segment liabilities		11,486		104,901		249		116,636
Unallocated liabilities:
Income tax liabilities (current and deferred)								11,142
Total liabilities as reported in the Group balance sheet								127,778
			Rest of World
	Americas		Ireland		Other		Total
As at December 31, 2016	US$‘000		US$‘000		US$‘000		US$‘000
Assets and liabilities
Segment assets		93,589		63,062		71		156,722
Unallocated assets:
Income tax assets (current and deferred)								15,761
Cash and cash equivalents and short-term investments								77,109
Total assets as reported in the Group balance sheet								249,592
Segment liabilities		9,746		108,049		4,534		122,329
Unallocated liabilities:
Income tax liabilities (current and deferred)								18,536
Total liabilities as reported in the Group balance sheet								140,865

vi) The distribution of long-lived assets, which are property, plant and equipment, goodwill and intangible assets and other non-current assets (excluding deferred tax assets), by geographical area was as follows:

	December 31, 2017 US$‘000		December 31, 2016 US$‘000
Rest of World – Ireland		15,873		41,909
Rest of World – Other		—		—
Americas		55,812		59,639
		71,685		101,548

vii) The distribution of depreciation and amortisation by geographical area was as follows:

	December 31, 2017 US$‘000		December 31, 2016 US$‘000		December 31, 2015 US$‘000
Depreciation:
Rest of World – Ireland		1,186		1,072		825
Rest of World – Other		—		304		151
Americas		1,238		2,197		2,081
		2,424		3,573		3,057
Amortisation:
Rest of World – Ireland		1,164		1,533		1,468
Americas		2,139		1,440		1,185
		3,303		2,973		2,653

viii) The distribution of share-based payment expense by geographical area was as follows:

	December 31, 2017US$‘000		December 31, 2016US$‘000		December 31, 2015US$‘000
Rest of World – Ireland		841		1,187		1,415
Rest of World – Other		—		41		13
Americas		87		153		122
		928		1,381		1,550
Share based-payments – discontinued operations		—		33		—
		928		1,414		1,550

See Note 21 for further information on share-based payments.

ix) The distribution of interest income and interest expense by geographical area was as follows:

			Rest of World
Interest Income Year ended December 31, 2017	Americas US$‘000		Ireland US$‘000		Other US$‘000		Eliminations US$‘000			Total US$‘000
Interest income earned		44		764		—		—			808
Non-cash financial income		—		2,390		—		—			2,390
Inter-segment interest income		—		—		4,853		(4,853	)		—
Total		44		3,154		4,853		(4,853	)		3,198
			Rest of World
Interest Expense Year ended December 31, 2017	Americas US$‘000		Ireland US$‘000		Other US$‘000		Eliminations US$‘000			Total US$’000
Interest on licence fee		—		40		—		—			40
Interest on finance leases		—		42		—		—			42
Cash interest on exchangeable notes		—		4,600		—		—			4,600
Non-cash interest on exchangeable notes		—		723		—		—			723
Inter-segment interest expense		4,853		—		—		(4,853	)		—
Total		4,853		5,405		—		(4,853	)		5,405
			Rest of World
Interest Income Year ended December 31, 2016	Americas US$‘000		Ireland US$‘000		Other US$‘000		Eliminations US$‘000			Total US$‘000
Interest income earned		21		856		—		—			877
Non-cash financial income		—		2,270		—		—			2,270
Inter-segment interest income		—		—		4,853		(4,853	)		—
Total		21		3,126		4,853		(4,853	)		3,147
			Rest of World
Interest Expense Year ended December 31, 2016	Americas US$‘000		Ireland US$‘000		Other US$‘000		Eliminations US$‘000			Total US$’000
Interest on deferred consideration and licence fee		—		66		—		—			66
Interest on finance leases		—		55		—		—			55
Cash interest on exchangeable notes		—		4,600		—		—			4,600
Non-cash interest on exchangeable notes		—		718		—		—			718
Inter-segment interest expense		4,853		—		—		(4,853	)		—
Total		4,853		5,439		—		(4,853	)		5,439
			Rest of World
Interest Income	Americas		Ireland		Other		Eliminations			Total
Year ended December 31, 2015	US$‘000		US$‘000		US$‘000		US$’000			US$‘000
Interest income earned		4		472		—		—			476
Non-cash financial income		—		13,015		—		—			13,015
Inter-segment interest income		—		—		4,854		(4,854	)		—

Total 4 13,487 4,854 (4,854 ) 13,491

			Rest of World
Interest Expense Year ended December 31, 2015	Americas US$‘000		Ireland US$‘000		Other US$‘000		Eliminations US$’000			Total US$‘000
Interest on deferred consideration and licence fee		—		138		—		—			138
Interest on finance leases		—		33		—		—			33
Cash interest on exchangeable notes		—		3,348		—		—			3,348
Non-cash interest on exchangeable notes		—		535		—		—			535
Inter-segment interest expense		4,854		—		—		(4,854	)		—
Total		4,854		4,054		—		(4,854	)		4,054

Interest expense in 2016 does not include US$5,000) (2015: US$9,000) that has been stated in Note 10 in respect of the discontinued operations in Fiomi.

x) The distribution of taxation (expense)/credit by geographical area was as follows:

	December 31, 2017 US$‘000			December 31, 2016 US$‘000			December 31, 2015 US$‘000
Rest of World – Ireland		192			2,038			(1,050	)
Rest of World – Other		(81	)		(48	)		(72	)
Americas		1,103			1,567			366
		1,214			3,557			(756	)

xi) During 2017, 2016 and 2015 there were no customers generating 10% or more of total revenues.

xii) The distribution of capital expenditure by geographical area was as follows:

	December 31, 2017 US$‘000		December 31, 2016 US$‘000
Rest of World – Ireland		7,602		14,431
Rest of World – Other		—		763
Americas		8,080		7,591
		15,682		22,785