Financial Statements
21Share capital and reserves
| Number of ordinary shares |
Share capital £m |
Share premium £m |
Merger reserve £m |
Other reserves £m |
Retained earnings £m |
Total £m |
|
|---|---|---|---|---|---|---|---|
| At 1 April 2008 | 522,190,080 | 131 | 1,269 | 335 | 5,055 | 6,790 | |
| Total recognised income and expense for the year | (474) | (3,664) | (4,138) | ||||
| Shares issued | 341,260,136 | 86 | (25) | 682 | 743 | ||
| Adjustment for share and share option awards | (1) | (1) | |||||
| Transfer | (682) | 682 | |||||
| Dividends paid in the year | (185) | (185) | |||||
| Issued, called up and fully paid at 31 March 2009 | 863,450,216 | 217 | 1,244 | (139) | 1,887 | 3,209 | |
| 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 887,000,000 25p ordinary shares (2008: 800,000,000).
At 31 March 2009 of the issued 25p ordinary shares, 2,040,620 were held in the ESOP trust (2008: 2,307,730), 11,266,245 shares were held as treasury shares (2008: 11,266,245) and 850,143,351 shares were in free issue (2008: 508,616,105). No treasury shares were acquired by the ESOP during the year. All issued shares are fully paid.
In calculating Adjusted Capital and Reserves for the purpose of the unsecured debt financial covenants, there is an adjustment of £444m to reflect the cumulative net amortised exceptional items relating to the refinancings in the years ending 31 March 2005, 2006 and 2007, see also note 18.
Merger reserve
This comprises the premium on shares issued to acquire Springboard Capital (Jersey) Limited under the arrangement for the Rights Issue in March 2009. No share premium is recorded in the Company's Financial Statements through the operation of the Merger Relief provisions of the Companies Act 1985. The subsequent redemption of these shares gave rise to distributable profits of £682m, which have been transferred to Retained Earnings.
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.
(iv) Equity reserve - The equity reserve represents the equity component of the irredeemable convertible bonds, which were converted during the year ended 31 March 2005, net of the related deferred tax asset.
At 31 March 2008, options over 7,055,549 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 on the following page:
| Date of grant |
At 1 April 2008* |
Granted/ newly vested*1 |
Vested/ exercised* |
Forfeits* | At 31 March 2009* |
Exercise/ share price at grant date pence*2 |
Exercise dates | ||
|---|---|---|---|---|---|---|---|---|---|
| From | To | ||||||||
| Share options | |||||||||
| Sharesave Scheme | |||||||||
| 01.03.03 | 552 | (552) | 01.03.08 | 31.08.08 | |||||
| 01.09.03 | 2,408 | (2,408) | 01.09.08 | 28.02.09 | |||||
| 01.03.04 | 28,366 | (1,956) | (14,256) | 12,154 | 391.09 | 01.03.09 | 31.08.09 | ||
| 01.03.05 | 6,279 | (6,068) | (211) | 01.03.08 | 31.08.08 | ||||
| 01.03.05 | 44,687 | (1,273) | (1,200) | 42,214 | 536.92 | 01.03.10 | 31.08.10 | ||
| 23.06.05 | 17,665 | (9,060) | (8,345) | 260 | 580.83 | 01.09.08 | 28.02.09 | ||
| 23.06.05 | 3,411 | (230) | 3,181 | 580.83 | 01.09.10 | 28.02.11 | |||
| 22.12.05 | 18,059 | (4,926) | 13,133 | 666.18 | 01.03.09 | 31.08.09 | |||
| 22.12.05 | 12,620 | (-4,352) | 8258 | 666.18 | 01.03.11 | 31.08.11 | |||
| 03.07.06 | 19,114 | (10,203) | 8,911 | 834.38 | 01.09.09 | 28.02.10 | |||
| 03.07.06 | 5,666 | (4,320) | 1,346 | 834.38 | 01.09.11 | 28.08.12 | |||
| 22.12.06 | 14,328 | (8,388) | 5,940 | 1024.12 | 01.03.10 | 31.08.10 | |||
| 22.12.06 | 4,917 | (3,645) | 1,272 | 1024.12 | 01.03.12 | 31.08.12 | |||
| 02.07.07 | 15,060 | (11,299) | 3,761 | 929.66 | 01.09.10 | 28.02.11 | |||
| 02.07.07 | 6,935 | (4,401) | 2,534 | 929.66 | 01.09.12 | 28.02.13 | |||
| 30.06.08 | 81,446 | (19,910) | 61,536 | 517.03 | 01.09.11 | 31.03.12 | |||
| 30.06.08 | 62,567 | (6,313) | 56,254 | 517.03 | 01.09.13 | 31.03.14 | |||
| 200,057 | 144,013 | (20,765) | (102,551) | 220,754 | |||||
| Long-Term Incentive Plan - options vested, not exercised | |||||||||
| 25.09.03 | 268,213 | (148,758) | 119,455 | 415.95 | 25.09.06 | 24.09.13 | |||
| 25.11.03 | 167,470 | (26,847) | (2,726) | 137,897 | 457.38 | 25.11.06 | 25.11.13 | ||
| 28.05.04 | 659,517 | (176,830) | (14,685) | 468,002 | 549.35 | 28.05.07 | 27.05.14 | ||
| 29.11.04 | 861,402 | (2,716) | (272,039) | 586,647 | 659.55 | 29.11.07 | 28.11.14 | ||
| 31.05.05 | 101,979 | 683,925 | (5,320) | (288,496) | 492,088 | 726.66 | 31.05.08 | 30.05.15 | |
| 05.12.05 | 11,444 | 340,426 | (41,076) | 310,794 | 823.60 | 05.12.08 | 04.12.15 | ||
| 30.05.06 | 39,639 | (7,749) | 31,890 | 1037.38 | 30.05.09 | 29.05.16 | |||
| 14.07.06 | 12,198 | (2,514) | 9,684 | 1090.40 | 14.07.09 | 13.07.16 | |||
| 29.11.06 | 3,250 | (1,241) | 2,009 | 1280.15 | 29.11.09 | 28.11.16 | |||
| 2,125,112 | 1,024,351 | (360,471) | (630,526) | 2,158,466 | |||||
| Long-Term Incentive Plan - unvested options | |||||||||
| 31.05.05 | 683,925 | (683,925) | 31.05.08 | 30.05.15 | |||||
| 05.12.05 | 340,426 | (340,426) | 05.12.08 | 04.12.15 | |||||
| 30.05.06 | 724,998 | (229,587) | 495,411 | 1037.38 | 30.05.09 | 29.05.16 | |||
| 14.07.06 | 241,629 | (75,609) | 166,020 | 1090.40 | 14.07.09 | 13.07.16 | |||
| 29.11.06 | 162,261 | (19,935) | 142,326 | 1280.15 | 29.11.09 | 28.11.16 | |||
| 27.06.07 | 729,021 | (400,073) | 328,948 | 1099.52 | 27.06.10 | 26.06.17 | |||
| 20.12.07 | 969,280 | (491,562) | 477,718 | 731.63 | 20.12.10 | 19.12.17 | |||
| 29.05.08 | 2,512,281 | (640,128) | 1,872,153 | 666.18 | 29.05.11 | 29.05.18 | |||
| 02.12.08 | 1,193,753 | 1,193,753 | 420.09 | 02.12.11 | 01.12.18 | ||||
| 3,851,540 | 3,706,034 | (1,024,351) | (1,856,894) | 4,676,329 | |||||
| Rollover Options | |||||||||
| 17.08.05 | 71,909 | (71,909) | 28.07.06 | 23.08.08 | |||||
| Total | 6,248,618 | 4,874,398 | (1,477,496) | (2,589,971) | 7,055,549 | ||||
| Weighted average exercise price of options (p) |
660 | 621 | 124 | 806 | 692 | ||||
| Shares | |||||||||
| Performance shares - Long-Term Incentive Plan | |||||||||
| 31.05.05 | 277,371 | (266,974) | (10,397) | 877.00 | 31.05.08 | ||||
| 05.12.05 | 149,009 | (138,164) | (10,249) | 596 | 994.00 | 05.12.08 | |||
| 30.05.06 | 260,562 | (63,223) | 197,339 | 1252.00 | 30.05.09 | ||||
| 29.11.06 | 168,908 | (13,452) | 155,456 | 1545.00 | 29.11.09 | ||||
| 27.06.07 | 373,454 | (171,113) | 202,341 | 1327.00 | 27.06.10 | ||||
| 20.12.07 | 211,641 | (120,162) | 91,479 | 883.00 | 20.12.10 | ||||
| 29.05.08 | 568,682 | (160,051) | 408,631 | 804.00 | 29.05.11 | ||||
| 02.12.08 | 172,491 | 172,491 | 507.00 | 02.12.11 | |||||
| 1,440,945 | 741,173 | (405,138) | (548,647) | 1,228,333 | |||||
| Fund Managers Performance Plan | |||||||||
| 14.07.06 | 264,124 | (264,124) | 1321.60 | 14.07.08 | |||||
| 14.07.06 | 264,138 | 264,138 | 1321.60 | 14.07.09 | |||||
| 30.05.07 | 140,854 | (140,854) | 1427.00 | 30.05.08 | |||||
| 30.05.07 | 140,849 | 140,849 | 1427.00 | 30.05.09 | |||||
| 30.05.07 | 140,867 | 140,867 | 1427.00 | 30.05.10 | |||||
| 14.08.08 | 521,874 | 521,874 | 748.00 | 14.08.11 | |||||
| 950,832 | 521,874 | (404,978) | 1,067,728 | ||||||
| Co-investment Share Plan | |||||||||
| 04.02.09 | 242,500 | 242,500 | 330.50 | 12.01.12 | |||||
| Matching Share Plan | |||||||||
| 14.07.06 | 85,637 | (38,905) | 46,732 | 1290.00 | 14.07.09 | ||||
| 22.05.07 | 137,847 | (55,023) | 82,824 | 1443.00 | 22.05.10 | ||||
| 20.05.08 | 246,931 | (93,753) | 153,178 | 806.00 | 20.05.11 | ||||
| 223,484 | 246,931 | (187,681) | 282,734 | ||||||
| Total | 2,615,261 | 1,752,478 | (810,116) | (736,328) | 2,821,295 | ||||
| Weighted average price of performance shares (p) |
1,251 | 804 | 1,138 | 1,068 | 1,077 | ||||
1 'Newly Vested' relates to vesting of LTIP06-01 and LTIP06-02
2 The weighted average share price of options exercised during the period was 770 pence.
* As restated, see note 2.