73
Share capital 27 December
28 December
2007
2006
£m
£m
Cineworld Group plc Authorised 200,000,000 ordinary shares of £0.01 each (2006: 173,515 ordinary shares of £0.01 each) Nil redeemable preference shares of £1 each (2006: 48,272 redeemable preference shares of £1 each)
2.0 –
– –
Allotted, called up and fully paid 141,721,509 ordinary shares of £0.01 each (2006: 172,815 ordinary shares of £0.01 each) Nil redeemable preference shares of £1 each (2006: 48,272 redeemable preference shares of £1 each)
1.4 –
– –
On 26 April 2007 the authorised share capital was increased from £50,017.15 to £2,048,272 by the creation of 199,826,485 ordinary shares. On admission to the London Stock Exchange on 2 May 2007, the Company made the following ordinary share issues: – 61,381,075 shares in connection with the global offer – 45,777,434 shares in connection with the conversion of outstanding bonds – 34,390,185 bonus shares on the existing shares (on the basis of 199 new shares for every existing one share) 48,272 redeemable preference shares of £1 each were redeemed and cancelled from the Company’s authorised share capital on 2 May 2007. Translation reserve The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign operations, as well as from the translation of liabilities that hedge the Company’s net investment in a foreign subsidiary. Hedging reserve The hedging reserve comprises the liability in relation to the interest rate swap entered into to hedge against variable interest payments on £67.5m of the new debt taken out on 2 May 2007. As hedge accounting has been adopted, the gains/losses are recorded through equity until such time as the swap matures, when they are recycled to the income statement. Dividends An interim dividend of 3p per share was paid on 26 October 2007 to ordinary shareholders (2006; £nil). The Board has proposed a final dividend of 6.5p per share payable on 18 June 2008. In accordance with IAS 10, this has not been recognised as a liability at 27 December 2007.
20 Financial instruments Overview The Group has exposure to the following risks from its use of financial instruments: Credit risk Liquidity risk ■■ Market risk ■■ ■■
This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes for measuring and managing risk, and the Group’s management of capital. Further quantitative disclosures are included throughout these consolidated financial statements. The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Board has established the Risk Management Committee, which is responsible for developing and monitoring the Group’s risk management policies. The committee reports regularly to the Board of Directors on its activities.