Financial Statements
Notes to the Group financial statements
for the year ended 31 March 2006
30. Reconciliation of movements in equity
| Total Retained earnings | |||||||||||||||
| Share | Share | Retained | Other | Attributable | Equity | Total | |||||||||
| capital | premium | earnings | reserves | to equity | minority | equity | |||||||||
| holders | interests | ||||||||||||||
| Year ended 31 March 2006 | Notes | £m | £m | £m | £m | £m | £m | £m | |||||||
| Balance at 1 April 2005 | 254 | 69 | 2,978 | (246) | 3,055 | 256 | 3,311 | ||||||||
| Cumulative adjustment for the implementation of IAS 39 |
39 | – | – | – | 10 | 10 | 2 | 12 | |||||||
| Balance at 1 April 2005, as restated | 254 | 69 | 2,978 | (236) | 3,065 | 258 | 3,323 | ||||||||
| Profit for the financial year | – | – | 569 | – | 569 | 26 | 595 | ||||||||
| Net income recognised directly in equity for the financial year |
– | – | 5 | 12 | 17 | 3 | 20 | ||||||||
| Employees share option schemes: | |||||||||||||||
| – value of employee services | – | – | 35 | – | 35 | – | 35 | ||||||||
| – proceeds from shares issued | 2 | 28 | – | – | 30 | – | 30 | ||||||||
| Decrease in minority interests arising due to corporate transactions |
– | – | – | – | – | (277) | (277) | ||||||||
| Purchase of ESOP shares | – | – | – | (16) | (16) | – | (16) | ||||||||
| Equity dividends paid during the year | 13 | – | – | (284) | – | (284) | – | (284) | |||||||
| Dividend in specie relating to the demerger of Burberry Group plc |
11 | – | – | (287) | – | (287) | – | (287) | |||||||
| Dividends paid to minority shareholders | – | – | – | – | – | (7) | (7) | ||||||||
| Other movements | – | – | 2 | – | 2 | (2) | – | ||||||||
| Total equity at 31 March 2006 | 256 | 97 | 3,018 | (240) | 3,131 | 1 | 3,132 | ||||||||
| Total Retained earnings | |||||||||||||||
| Share | Share | Retained | Other | Attributable | Equity | Total | |||||||||
| capital | premium | earnings | reserves | to equity | minority | equity | |||||||||
| holders | interests | ||||||||||||||
| Year ended 31 March 2005 | Notes | £m | £m | £m | £m | £m | £m | £m | |||||||
| Balance at 1 April 2004 | 254 | 35 | 2,642 | (72) | 2,859 | 160 | 3,019 | ||||||||
| Profit for the financial year | – | – | 596 | – | 596 | 49 | 645 | ||||||||
| Net income recognised directly in equity for the financial year |
– | – | 12 | 2 | 14 | – | 14 | ||||||||
| Employees share option schemes: | |||||||||||||||
| – value of employee services | – | – | 35 | – | 35 | – | 35 | ||||||||
| – proceeds from shares issued | 1 | 34 | – | – | 35 | – | 35 | ||||||||
| Increase in minority interests arising due to corporate transactions |
– | – | – | – | – | 62 | 62 | ||||||||
| Shares cancelled on purchase | (1) | – | (30) | – | (31) | – | (31) | ||||||||
| Purchase of treasury and ESOP shares | – | – | – | (176) | (176) | – | (176) | ||||||||
| Equity dividends paid during the year | 13 | – | – | (281) | – | (281) | – | (281) | |||||||
| Dividends paid to minority shareholders | – | – | – | – | – | (11) | (11) | ||||||||
| Other movements | – | – | 4 | – | 4 | (4) | – | ||||||||
| Total equity at 31 March 2005 | 254 | 69 | 2,978 | (246) | 3,055 | 256 | 3,311 | ||||||||
There are no significant statutory, contractual or exchange control restrictions on distributions by Group undertakings.
Cumulative goodwill of £1,709m (2005: £1,709m) has been charged to reserves in respect of acquisitions before 1 April 1998, including £1,678m (2005: £1,678m) in respect of subsidiary undertakings and £31m (2005: £31m) in respect of associated undertakings.
Other reserves is analysed as follows:
| Treasury | Hedging | Translation | Total | |
| and ESOP | reserve | reserve | other | |
| shares | reserves | |||
| Year ended 31 March 2006 | £m | £m | £m | £m |
| At 1 April 2005 | (248) | – | 2 | (246) |
| Cumulative adjustment for the implementation of IAS 39 | – | 10 | – | 10 |
| At 1 April 2005, as restated | (248) | 10 | 2 | (236) |
| Purchase of ESOP shares | (16) | – | – | (16) |
| Net income recognised directly in equity for the financial year | – | (2) | 14 | 12 |
| Balance at 31 March 2006 | (264) | 8 | 16 | (240) |
| Treasury | Hedging | Translation | Total | |
| and ESOP | reserve | reserve | other | |
| shares | reserves | |||
| Year ended 31 March 2005 | £m | £m | £m | £m |
| At 1 April 2004 | (72) | – | – | (72) |
| Purchase of treasury and ESOP shares | (176) | – | – | (176) |
| Net income recognised directly in equity for the financial year | – | – | 2 | 2 |
| Balance at 31 March 2005 | (248) | – | 2 | (246) |
Treasury and ESOP shares represent the cost of shares in GUS plc purchased by the GUS plc ESOP Trust (‘the Trust’) to satisfy the Group’s obligations under its share incentive plans and shares purchased in share buy-backs. During the year the Trust purchased 4,082,187 (2005: 2,600,000) shares at a cost of £36m (2005: £22m). In the year ended 31 March 2005 a further 22,140,000 shares were purchased at a cost of £200m by way of share buy-backs. Of these 3,500,000 shares with a cost of £30m were cancelled.
