Marks and Spencer 2004 Annual Report Download - page 51

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23. FINANCIAL INSTRUMENTS AND RISK MANAGEMENT continued
B Hedges of future transactions
Unrecognised gains and losses on instruments used for hedging and those recognised in the period ended 3 April 2004 are
as follows:
2004 2003
Gains Losses Net total Gains Losses Net total
£m £m £m £m £m £m
Unrecognised gains/(losses) on hedges at
beginning of the period 114.8 (57.6) 57.2 66.5 (46.6) 19.9
(Gains)/losses arising in previous years recognised
in the period (26.1) 12.5 (13.6) (13.7) 15.4 1.7
Gains/(losses) in previous years not recognised
in the period 88.7 (45.1) 43.6 52.8 (31.2) 21.6
Gains/(losses) arising in the period (14.4) 11.0 (3.4) 62.0 (26.4) 35.6
Unrecognised gains/(losses) on hedges
at end of the period 74.3 (34.1) 40.2 114.8 (57.6) 57.2
Of which:
Gains/(losses) expected to be recognised
within one year 10.4 (12.1) (1.7) 26.1 (12.7) 13.4
Gains/(losses) expected to be recognised
after one year 63.9 (22.0) 41.9 88.7 (44.9) 43.8
C Currency risk
The effect of currency exposures arising from the translation of overseas investments is mitigated by Group borrowings in
local currencies as appropriate. Gains and losses arising on net investments in overseas subsidiaries are recognised in the
consolidated statement of total recognised gains and losses.
After taking into account the effect of any hedging transactions that manage transactional currency exposures, no Group
company had any material monetary assets or liabilities in currencies other than their functional currencies at the balance
sheet date.
24. CALLED UP SHARE CAPITAL 2004 2003
£m £m
Authorised:
3,200,000,000 ordinary shares of 25p each (last year 3,200,000,000) 800.0 800.0
3,200,000,000 non-equity B shares of 70p each (last year 3,200,000,000) 2,240.0 2,240.0
Allotted, called up and fully paid:
2,265,144,934 ordinary shares of 25p each (last year 2,270,018,288) 566.3 567.5
121,244,763 non-equity B shares of 70p each (last year 168,819,801) 84.9 118.2
651.2 685.7
Issue of new shares:
13,616,646 ordinary shares having a nominal value of £3.4m were allotted during the year under the terms of the Company’s
share schemes which are described in note 10. The aggregate consideration received was £24.8m.
Purchase of own shares:
During the period, 18,490,000 ordinary shares having a nominal value of £4.6m were purchased by the Group for an
aggregate consideration of £52.9m. These shares were then cancelled and the nominal value of the shares transferred to the
capital redemption reserve (see note 25).
Redemption of B shares:
During the period 47,575,038 B shares were redeemed at par at a total cost of £33.4m. The nominal value of £33.3m has
been transferred to the capital redemption reserve (see note 25).
The holders of B shares are not entitled to receive notification of any general meeting of Marks and Spencer Group plc,
or to attend, speak or vote at any such meeting. B shares carry the right to a sub-LIBOR dividend paid on a semi-annual
basis in priority to any dividend paid to the holders of ordinary shares. In the event of the winding up of Marks and Spencer
Group plc, the holders of B shares will be entitled to 70p in respect of each B share held, together with the relevant
proportion of the dividend payable. The B shares may be redeemed at six monthly intervals. The next redemption date will
be 27 September 2004. At any time after 19 March 2005, or earlier, when the total number of B shares remaining in issue
becomes less than 25% of the total number of B shares originally issued, Marks and Spencer Group plc may, on giving notice
in writing to the holders of the B shares, redeem all, but not some, of the B shares in issue on that date. The redemption
shall be on the basis of 70p per share.