Holiday Inn 2008 Annual Report Download - page 101

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Notes to the parent company financial statements and Statement of Directors’ responsibilities 99
PARENT COMPANY
FINANCIAL STATEMENTS
8 Reconciliation of movements in shareholders’ funds
2008 2007
restated*
£m £m
Earnings available for shareholders 186 111
Dividends (62) (773)
124 (662)
Issue of ordinary shares 116
Repurchase of ordinary shares (71) (81)
Share-based payments capital contribution 27 30
Net movement in shareholders’ funds 81 (697)
Opening shareholders’ funds as previously reported 343 1,070
Impact of adopting UITF 44 (note 1) 84 54
Opening shareholders’ funds as restated 427 1,124
Closing shareholders’ funds 508 427
* Restated following the adoption of UITF 44 (note1).
9 Profit and dividends
Profit on ordinary activities after tax amounts to £186m (2007 £111m).
A final dividend, declared in the previous year, of 14.9p (2007 13.3p) per share was paid during the year, amounting to £44m (2007 £47m).
A special interim dividend was paid in 2007 of 200.0p per share, amounting to £709m. An interim dividend of 6.4p (2007 5.7p) per share was
paid during the year, amounting to £18m (2007 £17m). A final dividend of 20.2p (2007 14.9p) per share, amounting to £58m (2007 £44m),
is proposed for approval at the Annual General Meeting. The proposed final dividend is payable on shares in issue at 27 March 2009.
The audit fee for both years was borne by a subsidiary undertaking.
10 Contingencies
Contingent liabilities of £1,345m (2007 £840m) in respect of guarantees of the liabilities of subsidiaries have not been provided for in the
financial statements.
In relation to the parent company
financial statements
The following statement, which should be read in conjunction
with the independent auditor’s report, is made with a view to
distinguishing for shareholders the respective responsibilities
of the Directors and of the auditor in relation to the Company
financial statements.
The Directors are responsible for preparing the parent company
financial statements and Remuneration Report in accordance with
applicable United Kingdom law and United Kingdom Generally
Accepted Accounting Practice (UK GAAP).
The Directors are required to prepare Company financial
statements for each financial year which present fairly the financial
position of the Company and the financial performance of the
Company for that period.
The Directors consider that, in preparing the Company financial
statements, the Company has used appropriate accounting
policies, consistently applied and supported by reasonable and
prudent judgements and estimates, and that all applicable
accounting standards have been followed. The Company financial
statements have been prepared on a going concern basis as the
Directors have a reasonable expectation that the Company has
adequate resources to continue in operational existence for the
foreseeable future.
The Directors have responsibility for ensuring that the Company
keeps accounting records which disclose with reasonable accuracy
the financial position of the Company and which enable them to
ensure that the Company financial statements comply with the
Companies Act 1985.
The Directors have general responsibility for taking such steps
as are reasonably open to them to safeguard the assets of the
Company and to prevent and detect fraud and other irregularities.
Statement of Directors’ responsibilities