Notes to the consolidated financial statements
26. Reconciliation of movements in total equity
| Called-up share capital £m |
Share premium account £m |
Retained earnings £m |
Other equity reserves £m |
Total shareholders’ equity £m |
Minority interests £m |
Total equity £m |
||
|---|---|---|---|---|---|---|---|---|
| At 1 April 2006 | 310 | 1,316 | 6,817 | (4,961) | 3,482 | 11 | 3,493 | |
| Total recognised income and expense for the year | – | – | 1,689 | (191) | 1,498 | 1 | 1,499 | |
| Equity dividends | – | – | (730) | – | (730) | – | (730) | |
| Issue of ordinary share capital | – | 16 | – | – | 16 | – | 16 | |
| Repurchase of shares | (2) | – | (169) | 2 | (169) | – | (169) | |
| Other movements in minority interests | – | – | – | – | – | (1) | (1) | |
| Share-based payment | – | – | 15 | – | 15 | – | 15 | |
| Tax on share-based payment | – | – | 13 | – | 13 | – | 13 | |
| At 31 March 2007 | 308 | 1,332 | 7,635 | (5,150) | 4,125 | 11 | 4,136 | |
| Total recognised income and expense for the year* | – | – | 3,524 | (54) | 3,470 | 3 | 3,473 | |
| Equity dividends | – | – | (780) | – | (780) | – | (780) | |
| Issue of ordinary share capital | 1 | 12 | – | – | 13 | – | 13 | |
| B shares converted to ordinary shares | – | 27 | – | – | 27 | – | 27 | |
| Repurchase of share capital and purchase | ||||||||
| of treasury shares (i) | (15) | – | (1,522) | 15 | (1,522) | – | (1,522) | |
| Other movements in minority interests | – | – | – | – | – | 4 | 4 | |
| Share-based payment | – | – | 18 | – | 18 | – | 18 | |
| Transfer between reserves | – | – | 63 | (63) | – | – | – | |
| Issue of treasury shares | – | – | 10 | – | 10 | – | 10 | |
| Tax on share-based payment | – | – | (5) | – | (5) | – | (5) | |
| At 31 March 2008* | 294 | 1,371 | 8,943 | (5,252) | 5,356 | 18 | 5,374 | |
| Total recognised income and expense for the year | – | – | (396) | 422 | 26 | 8 | 34 | |
| Equity dividends | – | – | (838) | – | (838) | – | (838) | |
| Repurchase of share capital and purchase | ||||||||
| of treasury shares (i) | – | – | (603) | – | (603) | – | (603) | |
| Other movements in minority interests | – | – | – | – | – | (12) | (12) | |
| Share-based payment | – | – | 22 | – | 22 | – | 22 | |
| Issue of treasury shares | – | – | 8 | – | 8 | – | 8 | |
| Tax on share-based payment | – | – | (1) | – | (1) | – | (1) | |
| At 31 March 2009 | 294 | 1,371 | 7,135 | (4,830) | 3,970 | 14 | 3,984 |
- *
- Comparatives have been restated for the finalisation of the fair value exercise on the acquisition of KeySpan Corporation (see note 28)
- (i)
- From 1 April 2008 to 24 September 2008, the Company repurchased under its share repurchase programme 85 million ordinary shares (year ended 31 March 2008: 200 million; year ended 31 March 2007: 22 million) for aggregate consideration of £597m (2008: £1,516m; 2007: £169m) including transaction costs. The shares repurchased have a nominal value of 1117⁄ 43 pence each and represented 3% of the ordinary shares in issue as at 31 March 2009. Included within total equity is a deduction of £1,173m for treasury shares (2008: £570m; 2007: £nil). Further purchases of shares relating to employee share schemes were made for an aggregate consideration of £6m (2008: £6m; 2007: £nil).
Other equity reserves
Translation £m |
Cash flow hedge £m |
Available- for-sale £m |
Capital redemption £m |
Merger £m |
Total £m |
|||
|---|---|---|---|---|---|---|---|---|
| At 1 April 2006 | 127 | 37 | 6 | 2 | (5,133) | (4,961) | ||
| Net (expense)/income recognised directly in equity | (175) | (11) | (5) | – | – | (191) | ||
| Repurchase of share capital | – | – | – | 2 | – | 2 | ||
| At 31 March 2007 | (48) | 26 | 1 | 4 | (5,133) | (5,150) | ||
| Net (expense)/income recognised directly in equity | (25) | (37) | 8 | – | – | (54) | ||
| Repurchase of share capital | – | – | – | 15 | – | 15 | ||
| Transfer between reserves | – | (31) | – | – | (32) | (63) | ||
| At 31 March 2008 | (73) | (42) | 9 | 19 | (5,165) | (5,252) | ||
| Net income/(expense) recognised directly in equity | 457 | (30) | (5) | – | – | 422 | ||
| At 31 March 2009 | 384 | (72) | 4 | 19 | (5,165) | (4,830) |
The merger reserve represents the difference between the carrying value of subsidiary undertakings investments and their respective capital structures following the Lattice demerger from BG Group plc and the 1999 Lattice refinancing of £(5,745)m and merger differences of £221m and £359m.
During the year ended 31 March 2008, a £32m gain on transfer of fixed assets to a former joint venture which subsequently became a subsidiary undertaking was transferred from other reserves to profit and loss reserve, as a result of the disposal of our wireless business.
Gains and losses recognised in the cash flow hedge reserve on interest rate swap contracts as of 31 March 2009 will be continuously transferred to the income statement until the borrowings are repaid (refer to note 21). The amount of the cash flow hedge reserve due to be released from reserves to the income statement within the next year is £12m, with the remaining amount due to be released with the same maturity profile as borrowings due after more than one year as shown in note 21.
The amount of the cash flow hedge reserve transferred against the cost of purchasing property, plant and equipment during the year was £8m, with £nil expected to be transferred within the next year.