EasyJet 2009 Annual Report Download - page 93

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91 easyJet plc Annual report and accounts 2009
91
c) Reconciliation of movement in shareholders’ funds
Share
capital
£ million
Share
premium
£ million
Retained
earnings
£ million
Total
£ million
At 1 October 2008 105.7 640.2 89.0 834.9
Profit for the year – – 263.6 263.6
Share incentive schemes
Proceeds from shares issued 0.3 2.3 – 2.6
Movement in reserves for employee share scheme – – 7.4 7.4
At 30 September 2009 106.0 642.5 360.0 1,108.5
Share
capital
£ million
Share
premium
£ million
Retained
earnings
£ million
Total
£ million
At 1 October 2007 104.8 633.9 68.2 806.9
Profit for the year – – 15.2 15.2
Share incentive schemes
Proceeds from shares issued 0.9 6.3 – 7.2
Movement in reserves for employee share scheme – – 5.6 5.6
At 30 September 2008 105.7 640.2 89.0 834.9
The disclosures required in respect of share capital are shown in note 18 to the consolidated accounts.
d) Reconciliation of operating profit to cash generated from operations
2009
£ million
2008
£ million
Operating profit 264.4 9.9
Adjustments for non-cash items:
Unrealised foreign exchange differences (8.5) (10.1)
Dividends received from subsidiary undertakings (261.7) –
Changes in working capital:
Decrease in amounts due from subsidiary undertakings 217.0 538.2
Increase in amounts due to subsidiary undertakings (215.8) (550.5)
(4.6) (12.5)
e) Guarantees and contingent liabilities
The Company has given a formal undertaking to the Civil Aviation Authority to guarantee the payment and discharge of all liabilities of easyJet Airline
Company Limited, a subsidiary of the Company. The guarantee is required for that company to maintain its operating licence under Regulation 3 of the
Licensing of Air Carriers Regulations 1992.
The Company has issued a guarantee in favour of easyJet Airline Company Limited, a subsidiary undertaking, in relation to the processing of credit card
transactions, and also in respect of hedging transactions carried out according to treasury policy.
The Company has guaranteed the contractual obligations of easyJet Leasing Limited, a subsidiary undertaking, in respect of its contractual obligations to
Airbus SAS in respect of the supply of Airbus 320 family aircraft.
The Company has guaranteed the repayment of borrowings that financed the acquisition of aircraft by subsidiary undertakings. The Company has also
guaranteed the payment obligations for the lease of aircraft by subsidiary undertakings.
The Company has guaranteed certain letters of credit which have been issued by a bank on behalf of subsidiary undertakings.
f) Related party transactions
Transactions with subsidiary undertakings, which principally relate to the provision of funding within the Group, are carried out on an arm’s-length basis.
Outstanding balances are placed on intercompany accounts with no specified credit period, are unsecured, and bear market rates of interest.
In addition, easyJet has a key relationship with easyGroup IP Licensing, which owns the easyJet brand.