Peachtree 2012 Annual Report Download - page 119

Overview
Performance
Governance
Net debt and capital structure continued
Merger reserve
Merger reserve brought forward relates to the merger reserve which was present under UK GAAP and frozen on transition to IFRS.
Other reserve
Other reserve relates to the recognition of a put and call arrangement to acquire the remaining non-controlling interest’s 25% share in Folhamatic.
14.5 Retained earnings
2012
£m
2011
£m
At 1 October 914.6 877.1
Profit for the year 296.6 189.0
Value of employee services 1.2 3.2
Purchase of treasury shares (299.8) –
Expenses related to purchase of treasury shares (2.0) –
Close period share buyback programme (10.0) (50.0)
Actuarial (loss)/gain on post-employment benefit obligations (2.6) 1.0
Other comprehensive income/equity movement of deferred income tax (0.7) (1.7)
Dividends paid to owners of the parent (136.5) (104.0)
At 30 September 760.8 914.6
The actuarial loss of £2.6m (2011: gain of £1.0m) is made up of a gain of £0.4m (2011: gain of £0.2m) on post-employment benefits (note 8) and a loss of £3.0m
(2011: gain of £0.8m) on other long-term employee benefits (note 8).
Treasury shares
Purchase of treasury share
Shares purchased under the Group’s buyback programme are not cancelled but are retained in issue and represent a deduction from equity attributable to
owners of the parent. During the year the Group purchased 104,628,376 shares (2011: nil) at a cost of £299.8m (2011: £nil) representing 7.9% of issued share
capital. Shares were repurchased at a weighted average price of 273.60p per share, the highest and lowest prices paid for these shares were 325.00p per share
and 245.40p per share respectively.
Close period share buyback programme
The close period buyback programme for £60.0m (2011: £50.0m) relates to the purchase of the Company’s own shares. Deutsche Bank AG has been appointed
to manage the irrevocable buyback programme during the close period which commenced on 1 October 2012 and will run up until 5 December 2012.
Employee share trust
The Group holds treasury shares in a trust which was set up for the benefit of Group employees. The Trust purchases the Company’s shares in the market
or is gifted them by the Company for use in connection with the Group’s share-based payments arrangements. The Trust holds 710,403 ordinary shares in the
Company (2011: 3,689,182) at a cost of £0.9m (2011: £9.5m) and a nominal value of £7,104 (2011: £36,891).
The Trust originally purchased the shares in 2006, and further shares were acquired by the Trust in 2010 with the cost being reflected in retained earnings.
These shares were acquired by the Trust in the open market using funds provided by the Company. In February 2012 the Company gifted 3,500,000 shares from
purchased treasury shares to the Trust. During the year, 6,478,779 shares were utilised to meet obligations under the Performance Share Plan.
The costs of funding and administering the scheme are charged to the profit and loss account of the Company in the period to which they relate. The market
value of the shares at 30 September 2012 was £2.2m (2011: £9.5m).
14.6 Non-controlling interest
Non-controlling interests in equity in the Group balance sheet represent the share of net assets of subsidiary undertakings held outside the Group. The
movement in the year comprises the profit attributable to such interests together with movements in respect of corporate transactions and related
exchange differences.
Note
2012
£m
At 1 October –
Non-controlling interest arising on business combination 16.1 (2.2)
Non-controlling interest’s share of profit of the year 0.1
At 30 September (2.1)
Financial statements
117
The Sage Group plc | Annual Report & Accounts 2012