Tesco 2009 Annual Report Download - page 136

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134 FINANCIAL STATEMENTS
Tesco PLC Annual Report and Financial Statements 2009
Note 13 Called up share capital
2009 2008
Ordinary shares of 5p each Ordinary shares of 5p each
Number £m Number £m
Authorised:
At beginning of year 10,858,000,000 543 10,858,000,000 543
Authorised during the year – – – –
At end of year 10,858,000,000 543 10,858,000,000 543
Allotted, called up and fully paid:
At beginning of year 7,863,498,783 393 7,947,349,558 397
Share options 57,060,046 3 65,432,552 3
Share buy-back (25,214,811) (1) (149,283,327) (7)
At end of year 7,895,344,018 395 7,863,498,783 393
During the financial year, 57 million (2008 – 65 million) shares of 5p each were issued in relation to share options for aggregate consideration of £130m
(2008 – £138m).
During the year, the Company purchased and subsequently cancelled 25,214,811 (2008 – 149,283,327) shares of 5p each, representing 0% (2008 – 2%)
of the called up share capital, at an average price of £3.98 (2008 – £4.38) per share. The total consideration, including expenses, was £100m (2008 –
£657m). The excess of the consideration over the nominal value has been charged to retained earnings.
Between 1 March 2009 and 17 April 2009, options over 3,120,922 ordinary shares have been exercised under the terms of the Savings-related Share
Option Scheme (1981) and the Irish Savings-related Option Scheme (2000). Between 1 March 2009 and 17 April 2009, options over 324,991 ordinary
shares have been exercised under the terms of the Executive Share Option Schemes (1994 and 1996) and the Discretionary Share Option Plan (2004).
As at 28 February 2009, the Directors were authorised to purchase up to a maximum in aggregate of 784.8 million (2008 – 793.4 million) ordinary shares.
The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at the meetings
of the Company.
Share buy-back liability
Insider trading rules prevent the Group from buying back the Company shares in the market during specified close periods (including the period
between the year end and the annual results announcement). However, if an irrevocable agreement is signed between the Company and a third party,
they can continue to buy back shares on behalf of the Company. In 2008, three such arrangements were in place at the year end and in accordance
with FRS 25, the Company recognised a financial liability equal to the estimated value of the shares purchasable under these agreements. A liability
of £100m was recognised within other payables for this amount. There were no such agreements in place in 2009.
Capital redemption reserve
Upon cancellation of the shares purchased as part of the share buy-back, a capital redemption reserve is created representing the nominal value of the
shares cancelled. This is a non-distributable reserve.
Notes to the Parent Company financial
statements continued