Marks and Spencer 2005 Annual Report Download - page 54

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52 MARKS AND SPENCER GROUP PLC
Notes to the financial statements continued
24 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 2 April 2005 are as follows:
2005 2004
Gains Losses Net total Gains Losses Net total
£m £m £m £m £m £m
Unrecognised gains/(losses) on hedges at
beginning of the period 74.3 (34.1) 40.2 114.8 (57.6) 57.2
(Gains)/losses arising in previous years recognised
in the period (12.7) 25.8 13.1 (26.1) 12.5 (13.6)
Gains/(losses) in previous years not recognised
in the period 61.6 (8.3) 53.3 88.7 (45.1) 43.6
Gains/(losses) arising in the period 12.8 (6.5) 6.3 (14.4) 11.0 (3.4)
Unrecognised gains/(losses) on hedges
at end of the period 74.4 (14.8) 59.6 74.3 (34.1) 40.2
Of which:
Gains/(losses) expected to be recognised
within one year 2.9 (3.6) (0.7) 10.4 (12.1) (1.7)
Gains/(losses) expected to be recognised
after one year 71.5 (11.2) 60.3 63.9 (22.0) 41.9
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.
25 CALLED UP SHARE CAPITAL 2005 2004
£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:
1,658,095,142 ordinary shares of 25p each (last year 2,265,144,934) 414.5 566.3
93,822,916 non-equity B shares of 70p each (last year 121,244,763) 65.7 84.9
480.2 651.2
Issue of new shares:
28,309,324 ordinary shares having a nominal value of £7.0m 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 £68.4m.
Purchase of own shares:
On 28 October 2004, 635,359,116 ordinary shares with a nominal value of £158.8m were purchased by the Group by way of a Tender
Offer for an aggregate consideration of £2.3bn. These shares were then cancelled and the nominal value transferred to the capital
redemption reserve (see note 26).
Redemption of B shares:
During the period, 27,421,847 B shares were redeemed at par at a total cost of £19.2m. The nominal value of £19.2m has been
transferred to the capital redemption reserve (see note 26).