Holiday Inn 2015 Annual Report Download - page 138

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Notes to the Group Financial Statements continued
26. Share-based payments continued
Number
of shares
thousands
Range of
option prices
pence
Weighted
average
option price
pence
Executive Share Option Plan
Outstanding at 1 January 2013 698 438.0–619.8 514.8
Exercised (638) 438.0–619.8 512.3
Outstanding at 31 December 2013 60 494.2–619.8 541.3
Exercised (60) 494.2–619.8 541.3
Outstanding at 31 December 2014 and 31 December 2015 – n/a –
Options exercisable
At 31 December 2014 and 31 December 2015 – n/a n/a
At 31 December 2013 60 494.2–619.8 541.3
The weighted average share price at the date of exercise for share awards vested during the year was 2,592.1p (2014: 1,966.5p). The closing share
price on 31December 2015 was 2,658.0p and the range during the year was 2,209.0p to 2,880.0p per share.
27. Equity
Equity share capital
Number
of shares
millions
Nominal
value
$m
Share
premium
$m
Equity
share
capital
$m
Allotted, called up and fully paid
At 1 January 2013 (ordinary shares of 14194 ⁄329p each) 268 63 116 179
Issued on exercise of share options 1–55
Exchange adjustments –235
At 31 December 2013 (ordinary shares of 14194 ⁄329p each) 269 65 124 189
Share capital consolidation (20) – – –
Repurchased and cancelled under repurchase programme (1) – – –
Exchange adjustments –(4)(7)(11)
At 31 December 2014 (ordinary shares of 15265⁄329p each) 248 61 117 178
Exchange adjustments –(3)(6)(9)
At 31 December 2015 (ordinary shares of 15265 ⁄329p each) 248 58 111 169
On 7 August 2012, the Company announced a $1bn return of funds to shareholders comprising a $500m special dividend with share consolidation
and a $500m share repurchase programme. The share consolidation was approved on 8 October 2012 at a General Meeting (GM) of the Company
and became effective on 9 October 2012 on the basis of 14 new ordinary shares of 14194⁄329p each for every 15 existing ordinary shares of 1329⁄47p
each. The special dividend of 172.0¢ per share was paid to shareholders on 22 October 2012 at a total cost of $505m. Under the authority granted
by shareholders at the GM on 8 October 2012, the share repurchase programme commenced. In the year to 31 December 2014, 3.4m (2013: 9.8m)
shares were repurchased for a consideration of $110m (2013: $283m), increasing the total amount repurchased to $500m and completing the
programme. Of the 3.4m (2013: 9.8m) shares repurchased in 2014, 2.7m (2013: 9.8m) are held as treasury shares and 0.7m (2013: nil) were
cancelled. The cost of treasury shares was deducted from retained earnings.
The authority given to the Company at the Annual General Meeting held on 8 May 2015 to purchase its own shares was still valid at 31December
2015. Aresolution to renew the authority will be put to shareholders at the Annual General Meeting on 6 May 2016.
On 6 August 2013, the Company announced a special dividend of 133.0¢ per share amounting to $355m which was paid to shareholders on
4 October 2013.
On 2 May 2014, the Company announced a $750m return to shareholders by way of a special dividend and share consolidation. On 30 June 2014,
shareholders approved the share consolidation at a GM of the Company on the basis of 12 new ordinary shares of 15265/329p per share for every
13 existing ordinary shares of 14194/329p each, which became effective on 1 July 2014. The special dividend of 293.0¢ per share was paid to
shareholders on 14 July 2014, at a total cost of $763m.
As a result of the 2014 share consolidation, the number of shares held in treasury reduced from 12.5m to 11.5m.
The balance classified as equity share capital includes the total net proceeds (both nominal value and share premium) on issue of the Company’s
equity share capital, comprising 15265/329p shares. The share premium reserve represents the amount of proceeds received for shares in excess
of their nominal value.
The Company no longer has an authorised share capital.
136 IHG Annual Report and Form 20-F 2015