Holiday Inn 2012 Annual Report Download - page 135

OVERVIEW BUSINESS REVIEW GOVERNANCE
PARENT COMPANY FINANCIAL STATEMENTS OTHER INFORMATION
GROUP FINANCIAL
STATEMENTS
Notes to the Parent Company Financial Statements and Statement of Directors’ responsibilities 133
8. Reconciliation of movements in shareholders’ funds
2012 2011
£m £m
Earnings available for shareholders 610 264
Dividends (426) (92)
184 172
Issue of ordinary shares 7 5
Repurchase of shares (67) –
Transaction costs relating to shareholder returns (1) –
Share-based payments capital contribution 17 19
Net movement in shareholders’ funds 140 196
Shareholders’ funds at 1 January 743 547
Shareholders’ funds at 31 December 883 743
9. Profit and dividends
Profit on ordinary activities after tax amounts to £610m (2011 £264m).
A final dividend, declared in the previous year, of 24.7p (2011 22.0p) per share was paid during the year, amounting to £72m (2011 £63m).
An interim dividend of 13.5p (2011 9.8p) per share was paid during the year, amounting to £39m (2011 £29m). A special interim dividend
of 108.4p per share was paid during the year, amounting to £315m. A final dividend of 27.7p (2011 24.7p) per share, amounting to £74m
(2011 £71m), is proposed for approval at the AGM. The proposed final dividend is payable on shares in issue at 22 March 2013.
The audit fee of £0.02m (2011 £0.02m) was borne by a subsidiary undertaking in both years.
10. Contingencies
Contingent liabilities of £nil (2011 £65m) 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
Parent Company Financial Statements.
The Directors are responsible for preparing the Parent Company
Financial Statements and Directors’ Remuneration Report in
accordance with applicable United Kingdom law and United
Kingdom Generally Accepted Accounting Practice (UK GAAP).
The Directors are required to prepare 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 Parent 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.