Aer Lingus 2010 Annual Report Download - page 26

24 Directors’ Report Aer Lingus Group Plc – Annual Report 2010
Introduction
The Directors present their report to shareholders, together with the
fi nancial statements of Aer Lingus Group plc and the Auditors’ report
thereon, for the year ended 31 December 2010.
Principal activities and future developments
The principal activities during the year continued to be the provision
of air travel services. The Chairman’s Statement and Chief Executive
Offi cer’s Review on pages 2 to 5 reports on developments during the
year, on the state of affairs at 31 December 2010, on events since 31
December 2010, and on likely future developments. Further information
with respect to the review of the business and future developments is
contained in the Operating and Financial Review on pages 6 to 12. The
fi nancial statements for the year ended 31 December 2010 are set out
in details on pages 44 to 89.
Information on the key performance indicators applicable to the Group
are detailed in the Financial Highlights on page 1, the Chairman’s
Statement on pages 2 to 5, the Chief Executive Offi cer’s Review on pages
4 to 5 and in the Operating and Financial Review on pages 6 to 12.
Results for the year and state of affairs as at
31 December 2010
The consolidated income statement for the year ended 31 December
2010 and the consolidated statement of fi nancial position at that date
are set out on pages 44 and 46 respectively. The profi t for the year after
tax amounted to €49.2 million (2009: loss of €130.1 million).
The movement on the retained earnings for the year is as follows:
€m
Balance, 31 December 2009 (188.3)
Profi t for the year 49.2
Balance, 31 December 2010 (139.1)
Total equity increased by €97.9 million during the year as a result of the
profi t for the year of €49.2 million and an increase in other reserves of
€48.7 million. No further transfers to or from reserves are proposed by
Directors.
Substantial interests in share capital
As at 25 March 2011, the Directors are aware of the following substantial
interest in the share capital of the company which represent more than
3% of the issued share capital.
Name Shares held % of issued
share capital
Ryanair Limited 159,231,025 29.82%
Minister for Finance of Ireland 134,109,026 25.11%
Denis O’ Brien 17,598,822 3.295%
As far as the company is aware, other than stated above, no other person
or company has an interest of more than 3% in the share capital of the
company. Aer Lingus ESOP Trustee Limited ceased to hold more than 3%
of the issued share capital of the company in December 2010 when
approximately 62.5 million shares transferred into the direct ownership
of the Irish resident benefi ciaries of the Aer Lingus employee share
ownership trust. Once all necessary arrangements are made for the
withholding and payment of applicable taxes in the relevant jurisdictions,
the balance of approximately 4.1 million shares will be appropriated in
respect of the non-Irish benefi ciaries of the trust. The benefi ciaries
comprise some 4,700 current and former employees of the Group.
Accounting policies
The Group accounts are prepared under International Financial Reporting
Standards as adopted by the EU. The principal accounting policies,
together with the basis of preparation of the accounts are set out on
pages 51 to 61.
Dividends
The Directors do not propose the payment of dividends in respect of the
year ended 31 December 2010.
Principal risks and uncertainties
Information on the principal risks and uncertainties facing the Group
are detailed on pages 13 to 15. The Financial Risk Management policies
in place to address these are set out in Note 3 to the consolidated
fi nancial statements.
Directors’ Report
Year ended 31 December 2010