Peachtree 2015 Annual Report Download - page 152

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The Sage Group plc | Annual Report & Accounts 2015
150
Net debt and capital structure continued
14 Equity continued
14.4 Retained earnings
Retained earning
2015
£m
2014
(restated)
£m
At 1 October 130.2 248.5
Profit for the year 194.3 188.0
Actuarial loss on post-employment benefit obligations (note 10) (4.8) (0.4)
Deferred tax credit on actuarial loss on post-employment obligations 0.6 0.4
Value of employee services net of deferred tax 10.1 7.8
Purchase of treasury shares (14.6) (89.5)
Expenses related to purchase of treasury shares (0.1) (0.2)
Close period share buyback programme (note 13.4) 60.0 (30.1)
Purchase of non-controlling interest (note 13.4) –(68.1)
Dividends paid to owners of the parent (note 14.5) (133.5) (126.2)
Total 242.2 130.2
The 2014 retained earnings balance was restated in line with the changes to the revenue recognition policy (note 1).
Treasury shares
Purchase of treasury shares
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 3,457,020 shares (2014: 24,206,805) at a cost of £12.4m
(2014: £89.5m) representing 0.0% of issued share capital (2014: 2.2%). Shares were repurchased at a weighted average price of 359.0p per
share; the highest and lowest prices paid for these shares were 390.7p per share and 347.0p per share respectively.
Close period share buyback programme
In 2014 the Group operated a close period buyback programme for £60.1m, relating to the purchase of the Company’s own shares.
No such programme is in place for 2015.
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
3,638,249 ordinary shares in the Company (2014: 5,407,155) at a cost of £0.6m (2014: £0.9m) and a nominal value of £38,272 (2014: £56,880).
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 January 2013 the
Company gifted 5,000,000 shares from purchased treasury shares to the Trust.
On 13 March 2015, the Trust agreed to satisfy the vesting of certain PSP awards, utilising a total of 1,760,694 shares held in the Trust.
Furthermore, The Trust received additional funds of £2.2m which were used to purchase 377,860 shares in the market. These were used
in the current year to satisfy an award under the RSP.
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 2015 was £18.2m (2014: £19.8m).