Holiday Inn 2009 Annual Report Download - page 111

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Notes to the parent company financial statements and Statement of Directors’ responsibilities 109
8 Reconciliation of movements in shareholders’ funds
2009 2008
£m £m
Earnings available for shareholders 167 186
Dividends (78) (62)
89 124
Issue of ordinary shares 71
Repurchase of ordinary shares –(71)
Share-based payments capital contribution 16 27
Net movement in shareholders’ funds 112 81
Opening shareholders’ funds 508 427
Closing shareholders’ funds 620 508
9 Profit and dividends
Profit on ordinary activities after tax amounts to £167m (2008 £186m).
A final dividend, declared in the previous year, of 20.2p (2008 14.9p) per share was paid during the year, amounting to £57m (2008 £44m).
An interim dividend of 7.3p (2008 6.4p) per share was paid during the year, amounting to £21m (2008 £18m). A final dividend of 18.7p (2008
20.2p) per share, amounting to £54m (2008 £58m), is proposed for approval at the Annual General Meeting. The proposed final dividend is
payable on shares in issue at 26 March 2010.
The audit fee of £0.02m (2008 £0.02m) was borne by a subsidiary undertaking in both years.
10 Contingencies
Contingent liabilities of £356m (2008 £923m) 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 set out on the following page, 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.
In preparing these financial statements, the Directors are required to:
• select suitable accounting policies and apply them consistently;
• make judgements and accounting estimates that are reasonable
and prudent;
• state whether applicable UK Accounting Standards have been
followed, subject to any material departures disclosed and
explained in the financial statements; and
• prepare the financial statements on the going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
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 2006.
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.
The Directors are responsible for the maintenance and integrity of
the corporate and financial information included on the Group’s
website. Legislation in the United Kingdom governing the
preparation and dissemination of financial statements may differ
from legislation in other jurisdictions.
Statement of Directors’ responsibilities
PARENT COMPANY
FINANCIAL STATEMENTS