Notes to the Company financial statements

1. Adoption of new accounting standards	5. Derivative financial instruments	9. Reconciliation of movements in shareholders’ funds
2. Fixed asset investments	6. Borrowings	10. Commitments and contingencies
3. Debtors	7. Called up share capital	11. Directors and employees
4. Creditors (amounts falling due within one year)	8. Reserves

9. Reconciliation of movements in shareholders’ funds

	2008 £m	2007 £m
Profit for the year after taxation	2,370	244
Dividends (i)	(780)	(730)
Profit/(loss) for the financial year	1,590	(486)
Proceeds of issue of ordinary shares	13	16
Proceeds of issue of treasury shares	12	–
B shares converted to ordinary shares	27	–
Movement on cash flow hedge reserve (net of tax)	(8)	15
Share-based payment	18	15
Repurchase of ordinary shares	(1,520)	(169)
Net increase/(decrease) in shareholders’ funds	132	(609)
Opening shareholders’ funds	6,335	6,944
Closing shareholders’ funds	6,467	6,335

(i) For further details on dividends, refer to note 9 in the consolidated financial statements.