Financial Statements
Notes to the Accounts
20 Share capital and reserves
| Number of ordinary shares |
Share capital £m |
Share premium £m |
Other reserves £m |
Retained earnings £m |
Total £m | |
|---|---|---|---|---|---|---|
| Issued, called up and fully paid 1 April 2006 | 519,185,289 | 130 | 1,253 | 176 | 4,457 | 6,016 |
| Total recognised income and expense for the year | 356 | 2,454 | 2,810 | |||
| Shares issued | 2,113,068 | 10 | 10 | |||
| Purchase of ESOP shares | (16) | (16) | ||||
| Adjustment for share and share option awards | 18 | 18 | ||||
| Dividends paid in the year | (91) | (91) | ||||
| Issued, called up and fully paid 31 March 2007 | 521,298,357 | 130 | 1,263 | 532 | 6,822 | 8,747 |
| At 1 April 2007 | 521,298,357 | 130 | 1,263 | 532 | 6,822 | 8,747 |
| Total recognised income and expense for the year | (197) | (1,461) | (1,658) | |||
| Shares issued | 891,723 | 1 | 6 | 7 | ||
| Purchase of own shares | (151) | (151) | ||||
| Adjustment for share and share option awards | 11 | 11 | ||||
| Dividends paid in the year | (166) | (166) | ||||
| Issued, called up and fully paid 31 March 2008 | 522,190,080 | 131 | 1,269 | 335 | 5,055 | 6,790 |
The authorised share capital is 800,000,000 25p ordinary shares (2007: 800,000,000).
At 31 March 2008, of the issued 25p ordinary shares, 2,307,730 were held in the ESOP trust (2007: 2,509,897), 11,266,245 shares were held as Treasury shares (2007: nil) and 508,616,105 shares were in free issue (2007: 518,788,460). No treasury shares were acquired by the ESOP during the year. All issued shares are fully paid.
Other reserves
Other reserves comprise the following reserve accounts:
(i) Hedging reserve – The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow and foreign currency hedging instruments.
(ii) Translation reserve – The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations as well as the translation of the liabilities that hedge the Company’s net investment in a foreign subsidiary.
(iii) Revaluation reserve – The revaluation reserve relates to development properties and other investments.
At 31 March 2008, options over 5,177,427 ordinary shares were outstanding under employee shares option plans. These options had a weighted average life of seven years and two months. Details of outstanding share options and shares awarded to employees including executive directors are set out below:
| Exercise dates | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Date of grant | At 1 April 2007 |
Granted | Vested but not exercised |
Exercised/ vested | Forfeits/ lapses |
At 31 March 2008 |
Exercise/ share price at grant date pence |
From | To | |||
| Share options Sharesave Scheme | ||||||||||||
| 01.09.02 | 3,211 | (3,211) | 443 | 01.09.07 | 29.02.08 | |||||||
| 01.03.03 | 16,743 | (15,847) | (439) | 457 | 359 | 01.03.08 | 31.08.08 | |||||
| 01.09.03 | 1,995 | 1,995 | 383 | 01.09.08 | 28.02.09 | |||||||
| 01.03.04 | 1,718 | (1,718) | 472 | 01.03.07 | 31.08.07 | |||||||
| 01.03.04 | 28,540 | (3,668) | (1,369) | 23,503 | 472 | 01.03.09 | 31.08.09 | |||||
| 01.03.05 | 40,121 | (33,759) | (1,159) | 5,203 | 648 | 01.03.08 | 31.08.08 | |||||
| 01.03.05 | 44,166 | (3,079) | (4,061) | 37,026 | 648 | 01.03.10 | 31.08.10 | |||||
| 23.06.05 | 18,013 | (453) | (2,923) | 14,637 | 701 | 01.09.08 | 28.02.09 | |||||
| 23.06.05 | 4,334 | (1,508) | 2,826 | 701 | 01.09.10 | 28.02.11 | ||||||
| 22.12.05 | 19,935 | (1,350) | (3,622) | 14,963 | 804 | 01.03.09 | 31.08.09 | |||||
| 22.12.05 | 12,610 | (2,162) | 10,448 | 804 | 01.03.11 | 31.08.11 | ||||||
| 03.07.06 | 18,285 | (130) | (2,318) | 15,837 | 1,007 | 01.09.09 | 28.02.10 | |||||
| 03.07.06 | 7,251 | (2,556) | 4,695 | 1,007 | 01.09.11 | 28.08.12 | ||||||
| 22.12.06 | 18,636 | (64) | (6,700) | 11,872 | 1,236 | 01.03.10 | 31.08.10 | |||||
| 22.12.06 | 6,060 | (1,986) | 4,074 | 1,236 | 01.03.12 | 31.08.12 | ||||||
| 02.07.07 | 18,520 | (6,042) | 12,478 | 1,122 | 01.09.10 | 28.02.11 | ||||||
| 02.07.07 | 6,475 | (729) | 5,746 | 1,122 | 01.09.12 | 28.02.13 | ||||||
| 241,618 | 24,995 | (63,279) | (37,574) | 165,760 | ||||||||
| Long-Term Incentive Plan - options vested, not exercised | ||||||||||||
| 25.09.03 | 222,234 | 222,234 | 502 | 25.09.06 | 24.09.13 | |||||||
| 12.12.03 | 239,642 | (100,881) | 138,761 | 552 | 12.12.06 | 11.12.13 | ||||||
| 28.05.04 | 14,495 | 942,109 | (410,147) | 546,457 | 663 | 28.05.07 | 27.05.14 | |||||
| 29.11.04 | 9,409 | 804,149 | (99,825) | 713,733 | 796 | 29.11.07 | 28.11.14 | |||||
| 31.05.05 | 4,779 | 121,121 | (41,403) | 84,497 | 877 | 12.10.07 | 28.07.08 | |||||
| 05.12.05 | 2,198 | 29,842 | (11,551) | (11,007) | 9,482 | 994 | 05.06.07 | 28.07.08 | ||||
| 30.05.06 | 47,287 | (14,443) | 32,844 | 1252 | 05.06.07 | 28.07.08 | ||||||
| 14.07.06 | 14,440 | (4,333) | 10,107 | 1316 | 05.06.07 | 28.07.08 | ||||||
| 29.11.06 | 5,421 | (2,728) | 2,693 | 1545 | 05.06.07 | 28.07.08 | ||||||
| 492,757 | 1,964,369 | (663,807) | (32,511) | 1,760,808 | ||||||||
| Long-Term Incentive Plan - unvested options | ||||||||||||
| 28.05.04 | 950,359 | (942,109) | (8,250) | 663 | 28.05.07 | 27.05.14 | ||||||
| 29.11.04 | 818,919 | (804,149) | (14,770) | 796 | 29.11.07 | 28.11.14 | ||||||
| 31.05.05 | 862,840 | (121,121) | (175,038) | 566,681 | 877 | 31.05.08 | 30.05.15 | |||||
| 05.12.05 | 413,317 | (29,842) | (101,408) | 282,067 | 994 | 05.12.08 | 04.12.15 | |||||
| 30.05.06 | 821,300 | (47,287) | (173,300) | 600,713 | 1,252 | 30.05.09 | 29.05.16 | |||||
| 14.07.06 | 273,730 | (14,440) | (59,083) | 200,207 | 1,316 | 14.07.09 | 13.07.16 | |||||
| 29.11.06 | 184,581 | (5,421) | (44,715) | 134,445 | 1,545 | 29.11.09 | 28.11.16 | |||||
| 27.06.07 | 655,475 | (51,429) | 604,046 | 1,327 | 27.06.10 | 26.06.17 | ||||||
| 20.12.07 | 803,118 | 803,118 | 883 | 20.12.10 | 19.12.17 | |||||||
| 4,325,046 | 1,458,593 | (1,964,369) | (627,993) | 3,191,277 | ||||||||
| Rollover Options | ||||||||||||
| 17.08.05 | 214,495 | (154,913) | 59,582 | 387 | 28.07.06 | 23.08.08 | ||||||
| Total | 5,273,916 | 1,483,588 | (881,999) | (698,078) | 5,177,427 | |||||||
| Weighted average exercise price of options (p) | ||||||||||||
| 881 | 1,083 | 624 | 1,114 | 952 | ||||||||
| Shares | ||||||||||||
| Long-Term Incentive Plan* | ||||||||||||
| 28.05.04 | 316,775 | (314,025) | (2,750) | 663 | 28.05.07 | |||||||
| 29.11.04 | 272,973 | (268,050) | (4,923) | 796 | 29.11.07 | |||||||
| 31.05.05 | 371,271 | (70,753) | (70,696) | 229,822 | 877 | 31.05.08 | ||||||
| 05.12.05 | 181,740 | (14,154) | (44,121) | 123,465 | 994 | 05.12.08 | ||||||
| 30.05.06 | 306,004 | (26,456) | (63,654) | 215,894 | 1,252 | 30.05.09 | ||||||
| 29.11.06 | 187,401 | (4,805) | (42,644) | 139,952 | 1,545 | 29.11.09 | ||||||
| 27.06.07 | 352,316 | (42,883) | 309,433 | 1,327 | 27.06.10 | |||||||
| 20.12.07 | 175,360 | 175,360 | 883 | 20.12.10 | ||||||||
| 1,636,164 | 527,676 | (698,243) | (271,671) | 1,193,926 | ||||||||
| Fund Managers Performance Plan* | ||||||||||||
| 14.07.06 | 235,490 | (235,490) | 1,322 | 14.07.07 | ||||||||
| 14.07.06 | 235,490 | (15,636) | (1,008) | 218,846 | 1,322 | 14.07.08 | ||||||
| 14.07.06 | 235,514 | (15,638) | (1,010) | 218,866 | 1,322 | 14.07.09 | ||||||
| 30.05.07 | 118,100 | (908) | (484) | 116,708 | 1,427 | 30.05.08 | ||||||
| 30.05.07 | 118,100 | (908) | (484) | 116,708 | 1,427 | 30.05.09 | ||||||
| 30.05.07 | 118,117 | (909) | (485) | 116,723 | 1,427 | 30.05.10 | ||||||
| 706,494 | 354,317 | (269,489) | (3,471) | 787,851 | ||||||||
| Co-investment Share Plan | ||||||||||||
| 29.11.04 | 61,957 | (61,957) | 807 | 29.11.07 | ||||||||
| Matching Share Plan* | ||||||||||||
| 14.07.06 | 70,956 | 70,956 | 1,241 | 14.07.09 | ||||||||
| 22.05.07 | 128,360 | (14,144) | 114,216 | 1,461 | 22.05.10 | |||||||
| 70,956 | 128,360 | (14,144) | 185,172 | |||||||||
| Total | 2,475,571 | 1,010,353 | (1,029,689) | (289,286) | 2,166,949 | |||||||
| Weighted average price of performance shares (p) | ||||||||||||
| 1,082 | 1,302 | 917 | 1,174 | 1,250 | ||||||||
* At 31 March 2008 the ESOP trust, a discretionary trust established to facilitate the operation of the incentive schemes, held 2,307,730 ordinary shares, with a market value of £21,173,423 in respect of the LTIP, Fund Managers Performance Plan and Matching Share Plan Shares (2007: 2,530,034, £38,658,920). The amount of shares which could potentially vest are detailed in the Remuneration Report.
