Notes to the financial statements
25 Notes to statement of changes in equity
Consolidated
The shares held by the ESOP are available to satisfy awards under LTISP (see Note 26)
At 31 March 2014 the ESOP held 129,024 shares (2013: 127,939 shares) in the Company at a cost of £0.6 million (2013: £0.6 million). The ESOP was established in August 1996 to purchase shares in the Company in order to hedge certain future obligations of the Group including shares awarded under the LTISP, ESOS and the deferred bonus plan. During the year the Trustee of the ESOP issued 1,085 (2013: nil) shares following exercises of LTISP options and deferred bonuses.
The market value of the shares held by the ESOP, which are listed on the London Stock Exchange was £0.6 million at 31 March 2014 (2013: £0.5 million).
|
Other reserves – Consolidated |
Merger reserve £m |
Hedging reserve £m |
Translation reserve £m |
Other reserves £m |
||||
|---|---|---|---|---|---|---|---|---|
|
At 31 March 2013 |
55.9 |
(3.0) |
(1.5) |
51.4 |
||||
|
Total recognised in other comprehensive income |
– |
0.9 |
– |
0.9 |
||||
|
At 31 March 2014 |
55.9 |
(2.1) |
(1.5) |
52.3 |
||||
|
At 31 March 2012 |
55.9 |
(3.3) |
(3.6) |
49.0 |
||||
|
Total recognised in other comprehensive income |
– |
0.3 |
2.1 |
2.4 |
||||
|
At 31 March 2013 |
55.9 |
(3.0) |
(1.5) |
51.4 |
The hedging reserve records the gains and losses on hedging instruments, to the extent that they are effective cash flow hedges. Any gains and losses previously recorded in the hedging reserve are reclassified in profit and loss when the underlying hedged item affects profit and loss.
The translation reserve records exchange differences arising from the translation of the accounts of foreign currency denominated subsidiaries offset by the movements on loans and derivatives designated to hedge the net investment in foreign subsidiaries.
Parent Company
As permitted by section 408 of the Companies Act 2006, no separate profit and loss account is presented for the Company. The profit for the year dealt with in the accounts of the Company is £24.7 million (2013: £44.4 million) including dividends received from subsidiary companies of £25.3 million (2013: £51.5 million). Dividends paid amounted to £28.5 million (2013: £27.4 million) which, along with a credit for share based payments of £0.3 million (2013: £0.5 million) resulted in a £3.5 million decrease in retained earnings (2013: £17.5 million increase).
In 1996 the Company acquired the entire issued share capital of Dairy Crest Limited. Consideration was in the form of cash and the issue of 109.8 million ordinary shares of 25 pence each. The fair value of the shares issued was estimated as £170.2 million. The capital reserve of £142.7 million, shown in the statement of changes in equity, represents the difference between the fair value of shares issued and their nominal value of £27.5 million.