Tesco 1999 Annual Report Download - page 37

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TESCO PLC ANNUAL REPORT 1999 35
Ordinary shares of 5p each
Note 23 Called up share capital Number £m
Authorised at 28 February 1998 8,130,000,000 407
Authorised during the year 1,070,000,000 53
Authorised at 27 February 1999 9,200,000,000 460
Allotted, issued and fully paid:
Issued at 28 February 1998 2,200,255,616 110
Bonus issue on 3 July 1998 4,411,053,536 221
Scrip dividend election 8,490,005 –
Share options exercised 150,397,941 8
Issued at 27 February 1999 6,770,197,098 339
During the year, 4.6 billion shares were issued for an aggregate consideration of £278m, which comprised £22m for scrip dividend
and £256m for share options.
Between 27 February 1999 and 12 April 1999, options on 1,723,447 ordinary shares and 623,058 ordinary shares have been exercised
under the terms of the savings-related share option scheme (1981) and the executive share option schemes (1984 and 1994) respectively.
As at 27 February 1999 the directors were authorised to purchase up to a maximum in aggregate of 677,019,709 ordinary shares.
Group Company
1999 1998 1999 1998
Note 24 Reserves £m £m £m £m
a) Share premium account
At 28 February 1998 1,528 1,431 1,528 1,431
Premium on issue of shares less costs 248 79 248 79
Bonus issue on 3 July 1998 (221)–(221)–
Scrip dividend election 22 18 22 18
At 27 February 1999 1,577 1,528 1,577 1,528
b) Other reserves
At 27 February 1999 and 28 February 1998 40 40 ––
c) Profit and loss account
At 28 February 1998 2,198 2,310 851 815
Restatement for prior year accounting adjustment 27 –––
At 28 February 1998 (restated) 2,225 2,310 851 815
Goodwill arising on acquisition of subsidiary undertakings –(445) ––
Amount written back in respect of goodwill previously offset against reserves –135 ––
Loss on foreign currency net investments (19)(14) ––
Issue of shares (109)(38) ––
Retained profit for the financial year 329 277 (68)36
At 27 February 1999 2,426 2,225 783 851
The prior year adjustment has resulted from the adoption of Financial Reporting Standard 12, ‘Provisions, Contingent Liabilities and
Contingent Assets’, and represents the release of a provision of £32m for integration costs not incurred in 1998 less taxation of £5m.
Other reserves comprise a merger reserve arising on the acquisition of Hillards plc in 1987.
In accordance with section 230 of the Companies Act 1985 a profit and loss account for Tesco PLC, whose result for the year is shown
above, has not been presented in these accounts.
The cumulative goodwill written off against the reserves of the Group as at 27 February 1999 amounted to £718m (1998 – £718m).
During the year the company received £128m on the issue of 31 million shares in respect of the exercise of options awarded under the
savings-related share option scheme. Employees paid £19m to the Group for the issue of these shares and the balance of £109m
comprised contributions to the qualifying share ownership trust (QUEST) from subsidiary undertakings.