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SEGMENT INFORMATION

12 Months Ended

Dec. 31, 2020

Disclosure of operating segments [abstract]

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, 2020	US$‘000		US$‘000		US$‘000		US$’000			US$‘000
Revenue from external customers		77,688		24,292		-		-			101,980
Inter-segment revenue		59,304		1,095		-		(60,399	)		-

Total revenue		136,992		25,387		-		(60,399	)		101,980

			Rest of World
Revenue	Americas		Ireland		Other		Eliminations			Total
Year ended December 31, 2019	US$‘000		US$‘000		US$‘000		US$’000			US$‘000
Revenue from external customers		64,045		26,390		-		-			90,435
Inter-segment revenue		39,563		1,629		-		(41,192	)		-

Total revenue		103,608		28,019		-		(41,192	)		90,435

			Rest of World
	Americas		Ireland		Other		Eliminations			Total
Year ended December 31, 2018	US$‘000		US$‘000		US$‘000		US$’000			US$‘000
Revenue from external customers		65,863		31,172		-		-			97,035
Inter-segment revenue		38,665		2,899		-		(41,564	)		-

Total revenue		104,528		34,071		-		(41,564	)		97,035

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

Revenue	December 31, 2020 US$‘000		December 31, 2019 US$‘000		December 31, 2018 US$‘000
Americas		70,408		52,183		57,559
Asia / Africa		22,567		27,686		29,466
Europe (including Ireland) *		9,005		10,566		10,010

		101,980		90,435		97,035

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, 2020 US$‘000		December 31, 2019 US$‘000		December 31, 2018 US$‘000
Clinical laboratory goods		84,280		68,127		71,618
Clinical laboratory services		8,485		10,915		10,581
Point-of-Care		9,215		11,393		14,836

		101,980		90,435		97,035

iv)	The group has recognised the following amounts relating to revenue in the consolidated statement of operations:

Revenue	December 31, 2020 US$‘000		December 31, 2019 US$‘000		December 31, 2018 US$‘000
Revenue from contracts with customers (a)		101,980		90,435		97,035
Revenue from other sources		-		-		-

		101,980		90,435		97,035

(a)

Disaggregation of revenue from contracts with customers:

The Group derives revenue from the transfer of goods and services over time and at a point in time in the following geographical areas:

Timing of revenue recognition	Americas		Ireland		Other		Total
Year ended December 31, 2020	US$‘000		US$‘000		US$‘000		US$‘000
At a point in time		77,060		24,292		—		101,352
Over time		628		—		—		628

Total		77,688		24,292		—		101,980

Timing of revenue recognition	Americas		Ireland		Other		Total
Year ended December 31, 2019	US$‘000		US$‘000		US$‘000		US$‘000
At a point in time		63,300		26,390		—		89,690
Over time		745		—		—		745

Total		64,045		26,390		—		90,435

Timing of revenue recognition	Americas		Ireland		Other		Total
Year ended December 31, 2018	US$‘000		US$‘000		US$‘000		US$‘000
At a point in time		64,941		31,172		—		96,113
Over time		922		—		—		922

Total		65,863		31,172		—		97,035

(b)

The Group derives revenue from the transfer of goods and services over time and at a point in time based on customers’ geographical area as follows:

Timing of revenue recognition	Americas		Asia / Africa		Europe		Total
Year ended December 31, 2020	US$‘000		US$‘000		US$‘000		US$‘000
At a point in time		69,780		22,567		9,005		101,352
Over time		628		—		—		628

Total		70,408		22,567		9,005		101,980

Timing of revenue recognition	Americas		Asia / Africa		Europe		Total
Year ended December 31, 2019	US$‘000		US$‘000		US$‘000		US$‘000
At a point in time		51,438		27,686		10,566		89,690
Over time		745		—		—		745

Total		52,183		27,686		10,566		90,435

Timing of revenue recognition	Americas		Asia / Africa		Europe		Total
Year ended December 31, 2018	US$‘000		US$‘000		US$‘000		US$‘000
At a point in time		56,637		29,466		10,010		96,113
Over time		922		—		—		922

Total		57,559		29,466		10,010		97,035

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

				Rest of World
	Americas			Ireland		Other			Total
Year ended December 31, 2020	US$‘000			US$‘000		US$‘000			US$‘000
Result before impairment and unallocated expenses		14,495			4,264		(71	)		18,688
Impairment		(17,779	)		-		—			(17,779	)

Result after impairment		(3,284	)		4,264		(71	)		909
Unallocated expenses *										(827	)

Operating profit										82
Net financing expense (Note 8)										(6,715	)

Loss before tax										(6,633	)
Income tax credit (Note 9)										620

Loss for the year on continuing operations										(6,013	)
Loss for the year on discontinued operations (Note 10)										(375	)

Loss for the year										(6,388	)

				Rest of World
	Americas			Ireland			Other			Total
Year ended December 31, 2019	US$‘000			US$‘000			US$‘000			US$‘000
Result before impairment and unallocated expenses		5,239			(4,334	)		(108	)		797
Impairment		(14,562	)		(9,733	)		—			(24,295	)

Result after impairment		(9,323	)		(14,067	)		(108	)		(23,498	)
Unallocated expenses *											(614	)

Operating loss											(24,112	)
Net financing expense (Note 8)											(5,885	)

Loss before tax											(29,997	)
Income tax credit (Note 9)											1,006

Loss for the year on continuing operations											(28,991	)
Profit for the year on discontinued operations (Note 10)											77

Loss for the year											(28,914	)

				Rest of World
	Americas			Ireland			Other			Total
Year ended December 31, 2018	US$‘000			US$‘000			US$‘000			US$‘000
Result before impairment and unallocated expenses		5,514			1,900			(44	)		7,370
Impairment		(19,095	)		(7,837	)		—			(26,932	)

Result after impairment		(13,581	)		(5,937	)		(44	)		(19,562	)
Unallocated expenses *											(665	)

Operating loss											(20,227	)
Net financing expense (Note 8)											(2,956	)

Loss before tax											(23,183	)
Income tax credit (Note 9)											525

Loss for the year on continuing operations											(22,658	)
Loss for the year on discontinued operations (Note 10)											568

Loss for the year											(22,090	)

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

vi)	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, 2020

US$‘000

Assets and liabilities

Segment assets

58,164

37,632

95,799

Unallocated assets:

Income tax assets (current and deferred)

7,271

Cash and cash equivalents and short-term investments

27,327

Total assets as reported in the Group balance sheet

130,397

Segment liabilities

20,431

107,080

127,557

Unallocated liabilities:

Income tax liabilities (current and deferred)

5,059

Total liabilities as reported in the Group balance sheet

132,616

Rest of World

Americas

Ireland

Other

Total

As at December 31, 2019

US$‘000

Assets and liabilities

Segment assets

69,224

37,212

106,437

Unallocated assets:

Income tax assets (current and deferred)

8,234

Cash and cash equivalents and short-term investments

16,400

Total assets as reported in the Group balance sheet

131,071

Segment liabilities

14,575

104,396

200

119,171

Unallocated liabilities:

Income tax liabilities (current and deferred)

7,187

Total liabilities as reported in the Group balance sheet

126,358

vii)	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 and derivative financial instruments), by geographical area was as follows:

	December 31, 2020 US$‘000		December 31, 2019 US$‘000
Rest of World – Ireland		19,927		14,626
Americas		22,835		38,803

		42,762		53,429

viii)

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

	December 31, 2020 US$‘000		December 31, 2019 US$‘000		December 31, 2018 US$‘000
Depreciation:
Rest of World – Ireland		127		322		74
Americas		1,587		2,208		1,301

		1,714		2,530		1,375

Rest of World – Ireland		32		642		655
Americas		1,371		1,726		2,170

		1,403		2,368		2,825

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

	December 31, 2020 US$‘000		December 31, 2019 US$‘000		December 31, 2018 US$‘000
Rest of World – Ireland		722		659		1,265
Americas		70		99		104

		792		758		1,369

See Note 22 for further information on share-based payments.

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

Interest Income Year ended December 31, 2020	Americas US$‘000		Ireland US$‘000		Rest of world Other US$‘000		Eliminations US$‘000			Total US$‘000
Interest income earned		9		27		—		—			36
Inter-segment interest income		—		3,656		4,853		(8,509	)		—

Total		9		3,683		4,853		(8,509	)		36

Interest Expense Year ended December 31, 2020	Americas US$‘000		Ireland US$‘000		Rest of World Other US$‘000		Eliminations US$‘000			Total US$’000
Interest on finance leases		290		606		—		—			896
Cash interest on exchangeable notes		—		3,996		—		—			3,996
Non-cash interest on exchangeable notes ( Note 25)		—		643		—		—			643
Non-cash financial expense		—		1,216		—		—			1,216
Inter-segment interest expense		6,668		363		1,478		(8,509	)		—

Total		6,958		6,824		1,478		(8,509	)		6,751

			Rest of world
Interest Income Year ended December 31, 2019	Americas US$‘000		Ireland US$‘000		Other US$‘000		Eliminations US$‘000			Total US$‘000
Interest income earned		47		417		—		—			464
Non-cash financial income		—		233		—		—			233
Inter-segment interest income		—		—		4,853		(4,853	)		—

Total		47		650		4,853		(4,853	)		697

			Rest of World
Interest Expense Year ended December 31, 2019	Americas US$‘000		Ireland US$‘000		Other US$‘000		Eliminations US$‘000			Total US$’000
Interest on finance leases		294		653		—		—			947
Interest on tax audit settlement (Note 6)		—		1,000		—		—			1,000
Cash interest on exchangeable notes		—		3,996		—		—			3,996
Non-cash interest on exchangeable notes ( Note 25)		—		639		—		—			639


Inter-segment interest expense		4,853		—		—		(4,853	)		—

Total		5,147		6,288		—		(4,853	)		6,582

			Rest of world
Interest Income Year ended December 31, 2018	Americas US$‘000		Ireland US$‘000		Other US$‘000		Eliminations US$’000			Total US$‘000
Interest income earned		32		704		—		—			736
Non-cash financial income		—		1,388		—		—			1,388
Inter-segment interest income		—		—		4,853		(4,853	)		—

Total		32		2,092		4,853		(4,853	)		2,124

			Rest of world
Interest Income Year ended December 31, 2018	Americas US$‘000		Ireland US$‘000		Other US$‘000		Eliminations US$’000			Total US$‘000
Interest on finance leases		7		32		—		—			39
Cash interest on exchangeable notes		—		4,352		—		—			4,352
Non-cash interest on exchangeable notes ( Note 25)		—		689		—		—			689
Inter-segment interest expense		4,853		—		—		(4,853	)		—

Total		4,860		5,073		—		(4,853	)		5,080

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

	December 31, 2020 US$‘000			December 31, 2019 US$‘000		December 31, 2018 US$‘000
Rest of World – Ireland		293			831		(59	)
Rest of World – Other		(8	)		—		(3	)
Americas		335			175		587

		620			1,006		525

xii)	During 2020, 2019 and 2018 there were no customers generating 10% or more of total revenues.

xiii)

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

	December 31, 2020 US$‘000		December 31, 2019 US$‘000
Rest of World – Ireland		5,609		20,758
Rest of World – Other		-		-
Americas		4,317		12,863

		9,926		33,621