RBS 2003 Annual Report Download - page 170

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Notes on the accounts continued
Notes on the accounts
33 Share capital (continued)
Allotted, called up and fully paid Authorised
Number of shares – thousands 2003 2002 2003 2002
Equity shares
Ordinary shares of 25p 2,963,335 2,900,861 4,079,375 4,079,375
Non-voting deferred shares of £0.01 2,660,556 —32,300,000 32,300,000
Additional Value Shares and preference shares
Additional Value Shares of £0.01 — 2,660,556 2,700,000 2,700,000
Non-cumulative preference shares of US$0.01 82,000 106,000 238,500 238,500
Non-cumulative convertible preference shares of US$0.01 1,900 1,900 3,900 3,900
Non-cumulative preference shares of 0.01 — —66,000 66,000
Non-cumulative convertible preference shares of 0.01 750 750 3,000 3,000
Non-cumulative convertible preference shares of £0.25 — —900,000 900,000
Non-cumulative convertible preference shares of £0.01 200 200 1,000 1,000
Cumulative preference shares of £1 900 900 900 900
Non-cumulative preference shares of £1 — —300,000 300,000
Ordinary shares
The following issues of ordinary shares were made during the
year to 31 December 2003:
(a) 13.3 million ordinary shares following the exercise of
options under the company’s executive, sharesave and
option 2000 schemes and a further 6.2 million ordinary
shares in respect of the exercise of options under the
NatWest executive and sharesave schemes which had
been exchanged for options over the company’s shares
following the acquisition of NatWest;
(b) 40.1 million ordinary shares in lieu of cash in respect of
the final dividend for the year ended 31 December 2002
and the interim dividend for the year ended 31 December
2003; and
(c) 2.9 million ordinary shares under the company’s profit
sharing (share ownership) scheme.
The total consideration for ordinary shares issued during the
year amounted to £775 million.
During the year to 31 December 2003, options were granted
over 14.5 million ordinary shares under the company’s
executive, sharesave and option 2000 schemes. At 31
December 2003, options granted under the company’s various
schemes, exercisable up to 2013 at prices ranging from 388p
to 1841p per share, were outstanding in respect of 69.6 million
ordinary shares. In addition, options granted under the
NatWest schemes were outstanding in respect of 7.3 million
ordinary shares exercisable up to 2009 at prices ranging from
312p to 924p per share. As permitted by UITF 17 ‘Employee
share schemes’ applicable to SAYE schemes, no cost has
been recognised in respect of sharesave options.
Additional Value Shares
Approximately 2.7 billion Additional Value Shares (“AVS”) with a
total nominal value of £27 million were issued to shareholders
by way of a bonus issue in July 2000 in connection with the
acquisition of NatWest.
A dividend of 15 pence per AVS was paid on 3 December
2001, a second dividend of 30 pence per AVS on 2 December
2002 and a third and final dividend of 55 pence per AVS on 1
December 2003. The AVS were de-listed and in accordance
with the terms of issue they were converted to Non-voting
deferred shares and transferred to RBS NVDS Nominees
Limited.
Preference shares
In January 2003, the company redeemed the 8 million Series B
and the 16 million Series C, non-cumulative preference shares
of US$0.01 each, at a redemption price of US$25 per share, at
a total cost of US$600 million.