Notes to the financial statements
26. Statement of changes in shareholders’ equity
| Group | Called-up share capital £m |
Other reserve £m |
Foreign exchange reserve £m |
Hedging reserve £m |
Shares held by employee trust £m |
Retained earnings £m |
Total equity £m |
|---|---|---|---|---|---|---|---|
| At 1 January 2007 | 3.2 | – | 6.4 | (0.7) | – | 73.0 | 81.9 |
| Exchange gains on foreign currency translation | – | – | 21.1 | – | – | – | 21.1 |
| Net fair value gains – cash flow hedges | – | – | – | 1.4 | – | – | 1.4 |
| Actuarial losses on retirement benefit asset | – | – | – | – | – | (2.0) | (2.0) |
| Tax (charge) / credit on items taken to equity | – | – | – | (0.4) | – | 0.5 | 0.1 |
| Net income / (expense) recognised directly in equity | – | – | 21.1 | 1.0 | – | (1.5) | 20.6 |
| Profit after taxation for the year | – | – | – | – | – | 32.5 | 32.5 |
| Total recognised income for the year | – | – | 21.1 | 1.0 | – | 31.0 | 53.1 |
| Increase in share capital | 437.3 | 226.3 | – | – | – | – | 663.6 |
| Capital reorganisation and reverse acquisition adjustment | (414.8) | (248.8) | – | – | – | – | (663.6) |
| Capital contribution | – | – | – | – | – | 70.0 | 70.0 |
| Share-based payment adjustment to reserves | – | – | – | – | – | 3.5 | 3.5 |
| Dividends paid to Company shareholders | – | – | – | – | – | (4.9) | (4.9) |
| At 31 December 2007 | 25.7 | (22.5) | 27.5 | 0.3 | – | 172.6 | 203.6 |
At 1 January 2008 |
25.7 | (22.5) | 27.5 | 0.3 | – | 172.6 | 203.6 |
| Exchange gains on foreign currency translation | – | – | 30.2 | – | – | – | 30.2 |
| Net fair value losses – cash flow hedges | – | – | – | (8.9) | – | – | (8.9) |
| Actuarial losses on retirement benefit asset / obligation | – | – | – | – | – | (3.3) | (3.3) |
| Tax credit on items taken to equity | – | – | – | 2.5 | – | 0.9 | 3.4 |
| Net income / (expense) recognised directly in equity | – | – | 30.2 | (6.4) | – | (2.4) | 21.4 |
| Profit after taxation for the year | – | – | – | – | – | 50.6 | 50.6 |
| Total recognised income / (expense) for the year | – | – | 30.2 | (6.4) | – | 48.2 | 72.0 |
| Share-based payment adjustment to reserves | – | – | – | – | – | 2.1 | 2.1 |
| Purchase of shares by employee trust | – | – | – | – | (5.7) | – | (5.7) |
| Dividends paid to Company shareholders | – | – | – | – | – | (13.2) | (13.2) |
| At 31 December 2008 | 25.7 | (22.5) | 57.7 | (6.1) | (5.7) | 209.7 | 258.8 |
| Company | Called-up share capital £m |
Other reserve £m |
Hedging reserve £m |
Shares held by employee trust £m |
Retained earnings £m |
Total equity £m |
|---|---|---|---|---|---|---|
| At 1 January 2007 | – | – | – | – | – | – |
| Actuarial losses on retirement benefit asset | – | – | – | – | (0.4) | (0.4) |
| Tax credit on items taken to equity | – | – | – | – | 0.1 | 0.1 |
| Net expense recognised directly in equity | – | – | – | – | (0.3) | (0.3) |
| Loss after taxation for the period | – | – | – | – | (2.8) | (2.8) |
| Total recognised expense for the period | – | – | – | – | (3.1) | (3.1) |
| Issue of new share capital | 437.3 | 226.3 | – | – | – | 663.6 |
| Capital reduction | (411.6) | – | – | – | 411.6 | – |
| Share-based payment adjustment to reserves | – | – | – | – | 0.9 | 0.9 |
| Dividends paid to Company shareholders | – | – | – | – | (4.9) | (4.9) |
| At 31 December 2007 | 25.7 | 226.3 | – | – | 404.5 | 656.5 |
At 1 January 2008 |
25.7 | 226.3 | – | – | 404.5 | 656.5 |
| Net fair value gains – cash flow hedges | – | – | 0.2 | – | – | 0.2 |
| Actuarial losses on retirement benefit asset | – | – | – | – | (0.7) | (0.7) |
| Tax (charge) / credit on items taken to equity | – | – | (0.1) | – | 0.2 | 0.1 |
| Net expense recognised directly in equity | – | – | 0.1 | – | (0.5) | (0.4) |
| Loss after taxation for the period | – | – | – | – | (9.7) | (9.7) |
| Total recognised income / (expense) for the period | – | – | 0.1 | – | (10.2) | (10.1) |
| Purchase of shares by employee trust | – | – | – | (5.7) | – | (5.7) |
| Share-based payment adjustment to reserves | – | – | – | – | 2.1 | 2.1 |
| Dividends paid to Company shareholders | – | – | – | – | (13.2) | (13.2) |
| At 31 December 2008 | 25.7 | 226.3 | 0.1 | (5.7) | 383.2 | 629.6 |
The other reserve represents the difference between the nominal value of the shares issued when the Company became listed on 16 July 2007 and the fair value of the subsidiary companies acquired in exchange for this share capital.
An employee trust established by the Company purchased 4 million shares on various dates between 22 October 2008 and 7 November 2008 at a cost of £5.7m. These shares have been purchased in order to satisfy future vestings of awards and options under the Company’s various equity incentive schemes.
The Company has elected to take the exemption under section 230 of the Companies Act 1985 to not present the Parent Company income statement. The loss after taxation of the Parent Company for the period was £9.7m.