Annual Report and Accounts 2006
Notes to the Financial Statements
29. Capital and reserves
(a) Share capital of Cadbury Schweppes plc
| 2006 £m |
2005 £m |
2004 £m |
|
|---|---|---|---|
| Authorised share capital: Ordinary shares (3,200 million of 12.5p each) |
400 | 400 | 400 |
| Allotted, called up and fully paid share capital: Ordinary shares (2,095 million of 12.5p each) |
262 | 260 | 259 |
The Company has one class of ordinary shares which carry no right to fixed income.
During 2006, 10,682,192 ordinary shares of 12.5p were allotted and issued upon the exercise of share options (see Note 26). The nominal value of ordinary shares issued during the year was £1.3 million. There were no other changes in the issued ordinary share capital of the Company during 2006.
During 2005, 11,528,687 ordinary shares of 12.5p were allotted and issued upon the exercise of share options (see Note 26). The nominal value of ordinary shares issued during the year was £1.4 million. There were no other changes in the issued ordinary share capital of the Company during 2005.
During 2004, 8,446,409 ordinary shares of 12.5p were allotted and issued upon the exercise of share options (see Note 26). The nominal value of ordinary shares issued during the year was £1.1 million. There were no other changes in the issued ordinary share capital of the Company during 2004.
(b) Movements on capital and reserves
| Share capital £m |
Share premium £m |
Capital redemption reserve £m |
Hedging and translation reserve £m |
Acquisition revaluation reserve £m |
Retained earnings £m |
Total £m |
|
|---|---|---|---|---|---|---|---|
| At 29 December 2003 | 258 | 1,071 | 90 | – | – | 487 | 1,906 |
| Currency translation differences (net of tax) | – | – | – | (122) | – | – | (122) |
| Movement in own shares | – | – | – | – | – | 57 | 57 |
| Actuarial losses on defined benefit | |||||||
| pension schemes (net of tax) | – | – | – | – | – | (74) | (74) |
| Shares issued | 1 | 27 | – | – | – | (3) | 25 |
| Profit for the period attributable to equity holders of the parent | – | – | – | – | – | 525 | 525 |
| Dividends paid | – | – | – | – | – | (246) | (246) |
| At 2 January 2005 | 259 | 1,098 | 90 | (122) | – | 746 | 2,071 |
| IAS 39 transition balance sheet | |||||||
| adjustments | – | – | – | (8) | – | (18) | (26) |
| Currency translation differences (net of tax) | – | – | – | 257 | – | – | 257 |
| Movement in own shares | – | – | – | – | – | 103 | 103 |
| Actuarial gains on defined benefit pension schemes (net of tax) | – | – | – | – | – | 56 | 56 |
| IAS 39 transfers to income or expense | – | – | – | 6 | – | – | 6 |
| Shares issued | 1 | 37 | – | – | – | (1) | 37 |
| Profit for the period attributable to equity holders of the parent | – | – | – | – | – | 765 | 765 |
| Dividends paid | – | – | – | – | – | (261) | (261) |
| At 1 January 2006 | 260 | 1,135 | 90 | 133 | – | 1,390 | 3,008 |
| Currency translation differences (net of tax) | – | – | – | (413) | (3) | – | (416) |
| Revaluation reserve arising on acquisition of former associate | – | – | – | – | 56 | – | 56 |
| Disposal reversal of exchange in reserves | – | – | – | 10 | – | – | 10 |
| Share of associate reserve movements | – | – | – | – | – | (2) | (2) |
| Movement in own shares | – | – | – | – | 48 | 48 | |
| Actuarial gains on defined benefit pension schemes (net of tax) | – | – | – | – | – | 50 | 50 |
| IAS 39 transfers to income or expense | – | – | – | (1) | – | – | (1) |
| Shares issued | 2 | 36 | – | – | – | – | 38 |
| Profit for the period attributable to equity holders of the parent | – | – | – | – | – | 1,169 | 1,169 |
| Dividends paid | – | – | – | – | – | (272) | (272) |
| At 31 December 2006 | 262 | 1,171 | 90 | (271) | 53 | 2,383 | 3,688 |
At 31 December 2006, the Company held 19 million (2005: 22 million; 2004: 39 million) of own shares purchased by the Cadbury Schweppes Employee Trust for use in employee share plans. During 2006, an additional £50 million of the Company's shares were purchased by the Trust.
During 2006, the Company received £46 million (2005: £38 million; 2004; £28 million) on the issue of shares in respect of the exercise of options awarded under various share option plans.
The capital redemption reserve arose on the redemption of preference shares in 1997 and is considered non-distributable.
The hedging and translation reserve comprises £(268) million (2005: £135 million; 2004: £(122) million) relating to all foreign differences arising from the translation of the financial statements of foreign operations and £(3) million (2005: £(2) million; 2004: £nil) relating to hedging items.
The acquisition revaluation reserve arose on the step acquisition of former associates to subsidiaries in 2006. It represents the increase in the fair value of assets acquired attributable to the previously owned share.