BT 2008 Annual Report Download - page 121

120 BT Group plc Annual Report & Form 20-F
23. Share capital Number Share capitalaShare premiumb
of shares £m £m
.....................................................................................................................................................................................................................................
At 1 April 2006 8,635,377,801 432 7
Arising on share issues 5,277,051 – 24
At 1 April 2007 8,640,654,852 432 31
Arising on share issues 10,572,177 1 31
Cancelled (250,000,000) (13)c–
At 31 March 2008 8,401,227,029 420 62
aThe authorised share capital of the company throughout the years ended 31 March 2008 and 2007 was £13,463 million representing 269,260,253,468 ordinary shares of 5p each.
The allotted, called up and fully paid ordinary share capital of the company at 31 March 2008 was £420 million (2007: £432 million), representing 8,401,227,029 ordinary shares of 5p each
(2007: 8,640,654,852). Of the authorised but unissued share capital at 31 March 2008, 21 million ordinary shares (2007: 21 million) were reserved to meet options granted under employee share
option schemes.
bThe share premium account, representing the premium on allotment of shares is not available for distribution. The movement in share premium in 2008 arises on shares issued in consideration for the
acquisition of Net 2S SA and in 2008 and 2007, the excess of proceeds received on the exercise of share options versus the cost of treasury shares issued to satisfy those exercises.
cIn 2008 the group cancelled 250 million treasury shares (2007 and 2006: nil) with a nominal value of £13 million (2007 and 2006: nil).
24. Other reserves
Treasury
sharesaCash flow reservebAvailable-for -sale reservecTranslation reserved
Merger
and other
reservese
Total
other
reserves
£m £m £m £m £m £m
.....................................................................................................................................................................................................................................
At 31 March 2005 (256) – – 20 998 762
Transition to IAS 32 and IAS 39f–77–––77
At 1 April 2005 (256) 77 – 20 998 839
Exchange differences – – – 53 – 53
Net purchase of treasury shares (344) ––––(344)
Net fair value gains on cash flow hedges – 4 – – – 4
Gains on available-for-sale investments – – 35 – – 35
Fair value loss on net investment hedge – – – (20) – (20)
Recognised in income and expense in the year – (204) (35) (9) – (248)
Tax on items taken directly to equity – 45 – – – 45
At 1 April 2006 (600) (78) – 44 998 364
Exchange differences – – – (93) – (93)
Net purchase of treasury shares (284) ––––(284)
Net fair value losses on cash flow hedges – (201) – – – (201)
Recognised in income and expense in the year – 364 – – – 364
Tax on items taken directly to equity – (62) – – – (62)
At 1 April 2007 (884) 23 – (49) 998 88
Exchange differences – – – 210 – 210
Net purchase of treasury shares (1,529) ––––(1,529)
Cancellation of treasury shares 570 ––––570
Net fair value gain on cash flow hedges – 446 – – – 446
Recognised in income and expense in the year – (294) – – – (294)
Reclassified and reported in non current assets – 11 – – – 11
Tax on items taken directly to equity – (29) – – – (29)
At 31 March 2008 (1,843) 157 – 161 998 (527)
aThe treasury shares reserve is used to hold BT Group plc shares purchased by the group. During 2008 the company repurchased 539,657,691 (2007: 147,550,000, 2006: 165,772,145) of its own
shares of 5p each representing 6% of the called-up share capital, for consideration (including transaction costs) of £1,626 million (2007: £404 million, 2006: £365 million). This includes an accrual of
£120 million (2007 and 2006: £nil) for the purchase of treasury shares during the close period ending on 15 May 2008. In addition, 53,250,144 shares (2007: 66,719,600, 2006: 10,221,961) were
issued from treasury to satisfy obligations under employee share schemes and executive share awards representing a cost of £97 million (2007: £120 million, 2006: £21 million) and 250,000,000
treasury shares were cancelled at a cost of £570 million. At 31 March 2008, 607,285,178 shares (2007: 370,877,631, 2006: 290,047,231) shares with an aggregate nominal value of £30 million
(2007: £19 million, 2006: £15 million) are held as treasury shares at cost.
bThe cash flow reserve is used to record the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have not yet
occurred.
cThe available-for-sale reserve is used to record the cumulative fair value gains and losses on available-for-sale financial assets. The cumulative gains and losses are recycled to the income statement
on disposal of the assets. The gross gain in the period amounted to £nil (2007: £nil, 2006: £35 million).
dThe translation reserve is used to record cumulative translation differences on the assets and liabilities of foreign operations. The cumulative translation differences are recycled to the income
statement on disposal of the foreign operation.
eThe merger reserve arose on the group reorganisation that occurred in November 2001 and represents the difference between the nominal value of shares in the new parent company, BT Group plc,
and the share capital, share premium and capital redemption reserve of the prior parent company, British Telecommunications plc. Other reserves included within this caption relate primarily to
unrealised gains and losses on the transfer of assets and group undertakings to a joint venture.
fThe total impact on reserves of the IAS 32 and IAS 39 transitional adjustment is a charge of £209 million.
Consolidated financial statements Notes to the consolidated financial statements