RBS 2006 Annual Report Download - page 175
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RBS Group • Annual Report and Accounts 2006
174
Notes on the accounts continued
Financial statements
Ordinary shares
The following issues of ordinary shares were made during the
year ended 31 December 2006:
(a) 7.5 million ordinary shares following the exercise of options
under the company’s executive, sharesave and option
2000 schemes and a further 0.3 million ordinary shares in
respect of the exercise of options under the NatWest
executive scheme which had been exchanged for options
over the company’s shares following the acquisition of
NatWest in 2000; and
(b) 2.2 million ordinary shares under the company’s employee
share ownership plan.
Consideration of £104 million was received on the issue of
ordinary shares for cash.
During the year ended 31 December 2006, options were
granted over 13.6 million ordinary shares under the
company’s executive and sharesave schemes. At 31 December
2006, options granted under the company’s various schemes,
exercisable up to 2016 at prices ranging from 558p to
1852p per share, were outstanding in respect of 65 million
ordinary shares.
In addition, options granted under the NatWest executive
scheme were outstanding in respect of 0.6 million ordinary
shares exercisable up to 2009 at prices ranging from 500p to
924p per share.
During the year the company purchased in the market 54.4
million of its ordinary shares at a total cost of £1,005 million.
A total of 695,000 shares repurchased on 28 and 29
December 2006 were not cancelled until 3 and 4 January
2007. These shares are therefore included in issued ordinary
share capital as at 31 December 2006.
Employee share trusts purchased 13.8 million ordinary shares
at a cost of £252.5 million and awarded 7.8 million ordinary
shares on receipt of £108 million on the exercise of awards
under employee share schemes.
Transaction costs of £5 million were incurred by the company
in purchasing its ordinary shares. The employee share trusts
incurred costs of £1.9 million in purchasing the company’s
ordinary shares.
Preference shares
In March 2006, the company redeemed the 7 million Series D
and the 12 million Series I, non-cumulative preference shares
of US$0.01 each at US$25 per share.
In May 2006, the company issued 27 million Series Q non-
cumulative preference shares of US$0.01 each at US$25 per
share, the net proceeds being US$655 million.
In December 2006, the company issued 26 million Series R
non-cumulative preference shares of US$0.01 at US$25 each,
the net proceeds being US$631 million.
In January 2007, the company redeemed the 8 million Series E,
the 10 million series G and the 16 million series K, non-cumulative
preference shares of US$0.01 each at US$25 per share.
The costs of issue and discounts allowed on preference
shares issued during the year were £20 million.
Under IFRS certain of the Group’s preference shares are
classified as debt and are included in subordinated
liabilities on the balance sheet.
30 Share capital (continued)