Marks and Spencer 2006 Annual Report Download - page 88

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86 Marks and Spencer Group plc
Notes to the financial statements continued
27 STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Share capital Share Capital
Ordinary Non-equity premium redemption Hedging Other Retained
shares B shares account reserve reserve reserve1earnings2,3 Total
£m £m £m £m £m £m £m £m
At 4 April 2004 566.3 84.9 45.2 1,924.8 – (6,542.2) 6,780.1 2,859.1
Profit for the year attributable to shareholders ––––––586.2 586.2
Dividends ––––––(239.7) (239.7)
Shares issued on exercise of share options 7.0 – 61.4 ––––68.4
Redemption of B shares – (19.2) – 19.2 – – (19.2) (19.2)
Purchase of own shares (158.8) – – 158.8 – – (2,300.0) (2,300.0)
Tender Offer expenses ––––––(14.9)(14.9)
Sale of shares held by employee trusts4––––––0.3 0.3
Actuarial loss on post-retirement liability ––––––(78.1)(78.1)
Deferred tax on post-retirement liability ––––––23.0 23.0
Deferred tax on share schemes ––––––1.9 1.9
Charge for share-based payments ––––––22.2 22.2
At 2 April 2005 414.5 65.7 106.6 2,102.8 – (6,542.2) 4,761.8 909.2
At 3 April 2005 414.5 65.7 106.6 2,102.8 – (6,542.2) 4,761.8 909.2
First time adoption of IAS 32 and IAS 39 – (65.7) – – (1.6) – (0.3) (67.6)
414.5 – 106.6 2,102.8 (1.6) (6,542.2) 4,761.5 841.6
Profit for the year attributable to shareholders ––––––523.1 523.1
Dividends ––––––(204.1) (204.1)
Foreign currency translation ––––––11.1 11.1
Shares issued on exercise of share options 6.1 – 55.7––––61.8
Redemption of B shares – – – 11.0 – – (11.0) –
Purchase of shares held by employee trusts4––––––(6.0) (6.0)
Actuarial loss on post-retirement liability ––––––(169.3) (169.3)
Deferred tax on post-retirement liability ––––––52.0 52.0
Deferred tax on share schemes ––––––21.8 21.8
Deferred tax on revalued properties ––––––5.05.0
Charge for share-based payments ––––––24.7 24.7
Cash flow hedges
– fair value movement ––––(3.1) – – (3.1)
– recycled and reported in net profit ––––(1.4) – – (1.4)
– amount recognised in inventories ––––(3.8) – – (3.8)
– tax on fair value gains ––––1.9––1.9
At 1 April 2006 420.6 – 162.3 2,113.8 (8.0) (6,542.2) 5,008.8 1,155.3
1The ‘Other reserve’ was created as part of the capital restructuring that took place in 2002. It represents the difference between the nominal value of the shares
issued prior to the capital reduction by Marks and Spencer Group plc (being the carrying value of the investment in Marks & Spencer plc) and the share capital,
share premium and capital redemption reserve of Marks and Spencer plc at the date of the transaction.
2Cumulative goodwill of £62.0m (last year £62.0m) arising on the acquisition of subsidiaries has been written off against retained earnings.
3Includes a currency reserve of £11.1m (last year £nil).
4The Marks and Spencer ESOP Trust (‘the Trust’) holds 2,820,688 (last year 1,526,270) shares with a book value of £9.7m (last year £3.7m) and a market value of
£15.7m (last year £5.3m). These shares were acquired by the Trust in the market. The Trust used funds provided by Marks and Spencer plc to meet the Group’s
obligations. Awards are granted to employees at the discretion of Marks and Spencer plc and shares are awarded to employees by the Trust in accordance with the
wishes of Marks and Spencer plc under senior executive share schemes, the Share Matching Plan and Restricted Share Plan.