Holiday Inn 2010 Annual Report Download - page 115

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OVERVIEW BUSINESS REVIEW
THE BOARD,
SENIOR MANAGEMENT AND
THEIR RESPONSIBILITIES USEFUL INFORMATION
GROUP FINANCIAL
STATEMENTS
8. Reconciliation of movements in shareholders’ funds
2010 2009
£m £m
Earnings available for shareholders (29) 167
Dividends (77) (78)
(106) 89
Issue of ordinary shares 12 7
Share-based payments capital contribution 21 16
Net movement in shareholders’ funds (73) 112
Shareholders’ funds at 1 January 620 508
Shareholders’ funds at 31 December 547 620
9. Profit and dividends
Loss on ordinary activities after tax amounts to £29m (2009 profit of £167m).
A final dividend, declared in the previous year, of 18.7p (2009 20.2p) per share was paid during the year, amounting to £54m (2009 £57m).
An interim dividend of 8.0p (2009 7.3p) per share was paid during the year, amounting to £23m (2009 £21m). A final dividend of 22.0p
(2009 18.7p) per share, amounting to £63m (2009 £54m), is proposed for approval at the Annual General Meeting. The proposed final
dividend is payable on shares in issue at 25 March 2011.
The audit fee of £0.02m (2009 £0.02m) was borne by a subsidiary undertaking in both years.
10. Contingencies
Contingent liabilities of £134m (2009 £356m) in respect of guarantees of the liabilities of subsidiaries have not been provided for in the
financial statements.
Statement of Directors’ responsibilities
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.
PARENT COMPANY
FINANCIAL STATEMENTS
Notes to the parent company financial statements and Statement of Directors’ responsibilities 113