Holiday Inn 2007 Annual Report Download - page 96

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7 SHARE CAPITAL
Number of shares
Note millions £m
Authorised (ordinary shares)
At 31 December 2006 (1,400,000,000 shares of 11 3⁄7p each) 1,400 160
Share capital consolidation a(225) –
At 31 December 2007 (1,175,000,000 shares of 13 29⁄47p each) 1,175 160
Authorised (preference shares)
One redeemable preference share (£50,000) – –
Allotted, called up and fully paid (ordinary shares)
At 31 December 2006 (11 3⁄7p each) 356 41
Share capital consolidation a(57) –
Issued under option schemes 4–
Repurchase of shares b(8) (1)
At 31 December 2007 (13 29⁄47p each) 295 40
a 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.
b 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.
The aggregate consideration in respect of ordinary shares issued under option schemes during the year was £16m (2006 £20m).
Thousands
Options to subscribe for ordinary shares
At 31 December 2006 14,244
Exercised (5,669)
Lapsed or cancelled (324)
At 31 December 2007 8,251
Option exercise price per ordinary share (pence) 308.5-619.8
Final exercise date 4 April 2015
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.
8 MOVEMENTS IN RESERVES
Share Capital Profit and
premium account redemption reserve loss account
£m £m £m
At 31 December 2006 25 4 1,000
Premium on allotment of ordinary shares 16 – –
Repurchase of shares – – (80)
Transfer to capital redemption reserve – 1 (1)
Profit after tax – – 111
Dividends – – (773)
At 31 December 2007 41 5 257
9 PROFIT AND DIVIDENDS
Profit on ordinary activities after tax amounts to £111m (2006 £53m).
A final dividend, declared in the previous year, of 13.3p (2006 10.7p) per share was paid during the year, amounting to £47m (2006 £46m).
A special interim dividend of 200.0p (2006 118.0p) per share was paid during the year, amounting to £709m (2006 £497m). An interim
dividend of 5.7p (2006 5.1p) per share was paid during the year, amounting to £17m (2006 £18m). A final dividend of 14.9p (2006 13.3p)
per share, amounting to £44m (2006 £47m), is proposed for approval at the Annual General Meeting. The proposed final dividend is
payable on shares in issue at 28 March 2008.
The audit fee for both years was borne by a subsidiary undertaking.
10 CONTINGENCIES
Contingent liabilities of £840m (2006 £169m) in respect of guarantees of the liabilities of subsidiaries have not been provided for in the
financial statements.
94 IHG Annual Report and Financial Statements 2007
Notes to the parent company financial statements continued