Holiday Inn 2007 Annual Report Download - page 87

GROUP FINANCIAL STATEMENTS
Notes to the Group financial statements 85
GROUP FINANCIAL STATEMENTS
26 DEFERRED TAX PAYABLE (CONTINUED)
Tax losses with a value of £191m (2006 £192m), including capital losses with a value of £109m (2006 £87m), have not been recognised
as their use is uncertain or not currently anticipated. These losses may be carried forward indefinitely with the exception of £1m (2006
£nil) which expires after five years, £nil (2006 £1m) which expires after seven years and £nil (2006 £1m) which expires after 15 years.
Deferred tax assets of £4m (2006 £6m) in respect of share-based payments, £7m (2006 £7m) in respect of employee benefits and £13m
(2006 £17m) in respect of other items have not been recognised as the timing of their realisation and consequent use is uncertain or not
currently anticipated and, in part, is dependent upon the outcome of EU case law. Other items include £nil (2006 £7m) which expire after
nine years.
At 31 December 2007, the Group has not provided deferred tax in relation to temporary differences associated with undistributed
earnings of subsidiaries. Quantifying the temporary differences is not practical. However, based on current enacted law and on the basis
that the Group is in a position to control the timing and realisation of these temporary differences, no material tax consequences are
expected to arise.
27 AUTHORISED AND ISSUED SHARE CAPITAL
Authorised (ordinary shares and redeemable preference share)
At 31 December 2007, the authorised share capital was £160,050,000, comprising 1,175,000,000 ordinary shares of 13 29⁄47p each and one
redeemable preference share of £50,000.
Number of
shares
Note millions £m
Allotted, called up and fully paid (ordinary shares)
At 1 January 2006 433 43
Share capital consolidation a(53) –
Issued under option schemes 41
Repurchased and cancelled under repurchase programmes b(28) (3)
At 31 December 2006 356 41
Share capital consolidation c(57) –
Issued under option schemes 4–
Repurchased and cancelled under repurchase programmes b(8) (1)
At 31 December 2007 295 40
a On 1 June 2006, shareholders approved a share capital consolidation on the basis of seven new ordinary shares for every eight existing ordinary shares. This
provided for all the authorised ordinary shares of 10p each (whether issued or unissued) to be consolidated into new ordinary shares of 11 3⁄7p each. The share
capital consolidation became effective on 12 June 2006.
b During 2004 and 2005, the Company undertook to return funds of up to £750m to shareholders by way of three consecutive £250m share repurchase
programmes, the third of which was completed in the first half of 2007. In June 2007, a further £150m share repurchase programme commenced. During
the year, 7,724,844 (2006 28,409,753) ordinary shares were repurchased and cancelled under the authorities granted by shareholders at an Extraordinary
General Meeting held on 1 June 2006 and at the Annual and Extraordinary General Meetings held on 1 June 2007. Of these, 2,237,264 were 11 3⁄7p shares
and 5,487,580 were 13 29⁄47p shares.
c On 1 June 2007, shareholders approved a share capital consolidation on the basis of 47 new ordinary shares for every 56 existing ordinary shares. This provided
for all the authorised ordinary shares of 11 3⁄7p each (whether issued or unissued) to be consolidated into new ordinary shares of 13 29⁄47p each. The share
capital consolidation became effective on 4 June 2007.
d Whilst the authorised share capital comprises one redeemable preference share of £50,000, following its redemption in September 2005, this redeemable
preference share has not been re-issued.
The authority given to the Company at the Annual General Meeting on 1 June 2007 to purchase its own shares was still valid at
31 December 2007. A resolution to renew the authority will be put to shareholders at the Annual General Meeting on 30 May 2008.