For the short period 1 April 2006 to 3 March 2007
| Share capital £m |
Merger reserve £m |
Other reserves £m |
Retained earnings £m |
Total £m |
|||||
| At 1 April 2006 | 2,895.6 | (348.4) | (4.3) | 407.0 | 2,949.9 | ||||
| Profit for the financial period | – | – | – | 187.4 | 187.4 | ||||
| Share reduction | (2,807.9) | – | – | 2,807.9 | – | ||||
| Net (cost) recognised in equity for the financial period | – | – | (1.0) | (9.1) | (10.1) | ||||
| Movement in share based compensation reserve | – | – | – | 16.3 | 16.3 | ||||
| Net movement in own shares | – | – | (6.1) | – | (6.1) | ||||
| Equity dividends paid during the period | – | – | – | (34.6) | (34.6) | ||||
| Other movements | – | – | – | (24.1) | (24.1) | ||||
| Total equity at 3 March 2007 | 87.7 | (348.4) | (11.4) | 3,350.8 | 3,078.7 |
| Share capital £m |
Merger reserve £m |
Other reserves £m |
Retained earnings £m |
Total £m |
|||||
| At 1 April 2005 | 2,895.6 | (348.4) | (9.2) | 217.4 | 2,755.4 | ||||
| Profit for the financial year | – | – | – | 176.4 | 176.4 | ||||
| Net income recognised in equity for the financial period | – | – | 4.9 | 3.9 | 8.8 | ||||
| Movement in share based compensation reserve | – | – | – | 9.2 | 9.2 | ||||
| Net movement in own shares | – | – | – | – | – | ||||
| Equity dividends paid during the year | – | – | – | – | – | ||||
| Other movements | – | – | – | 0.1 | 0.1 | ||||
| Total equity at 31 March 2006 | 2,895.6 | (348.4) | (4.3) | 407.0 | 2,949.9 |
Merger reserve
The merger reserve arose on the demerger of the Group from GUS plc during
2006 as outlined in Note 2 “Group re-organisation”.
Other reserves
Other reserves principally consist of shares held in trust, the hedging reserve
and the translation reserve.
Net movement in own shares represents shares purchased for the purpose of satisfying obligations arising from Home Retail Group plc share-based compensation schemes. Shares in Home Retail Group are held in the following Trusts which have been established since demerger:
Home Retail Group Employee Share Ownership Trust (ESOT)
The ESOT provides for the issue of shares to Group employees under share option
and share grant schemes (with the exception of the Share Incentive Plan).
At 3 March 2007, the ESOT held 7,449,855 shares with a market value of £31.3m. The shares in the Trust are held in the balance sheet of the Group at nil value. The shares were acquired as part of the demerger from GUS at no cost. Dividends on these shares are waived.
Home Retail Group Share Incentive Scheme Trust
The Home Retail Group Share Incentive Scheme Trust provides for the issue
of shares to Group employees under the Share Incentive Plan.
At 3 March 2007, the Trust held 1,477,105 shares with a market value of £6.2m. These shares were purchased during the year at a cost of £6.1m.