Peachtree 2015 Annual Report Download - page 164

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The Sage Group plc | Annual Report & Accounts 2015
162
Notes to the Company financial statements continued
Net debts and capital structure continued
7 Equity continued
7.2 Reserves continued
Treasury shares
Purchase of treasury shares
During the year the Company purchased 3,457,020 shares (2014: 24,206,805) at a cost of £12.4m (2014: £89.5m). 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. Shares purchased under the Group’s buyback programme are retained in issue until cancelled and represent a deduction from
equity attributable to owners of the parent.
Close period share buyback programme
In 2014 the Company operated a close period buyback programme for £60.1m. No such programme is in place for 2015.
Employee share trust
Employee Share Trust The Company 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 cost of funding and administering the scheme is 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).
Other notes
8 Related party transactions
The Company has taken advantage of the exemption available under FRS 8, “Related Party Disclosures”, not to disclose details of
transactions with its wholly owned subsidiary undertakings.