Vodafone 2007 Annual Report Download - page 118

116 Vodafone Group Plc Annual Report 2007
Notes to the Consolidated Financial Statements
continued
18. Cash and cash equivalents 2007 2006
£m £m
Cash at bank and in hand 827 948
Money market funds 5,525 1,841
Commercial paper 1,129 –
Cash and cash equivalents as presented in the balance sheet 7,481 2,789
Bank overdrafts (23) (18)
Cash and cash equivalents of discontinued operations –161
Cash and cash equivalents as presented in the cash flow statement 7,458 2,932
Bank balances and money market funds comprise cash held by the Group on a short term basis with original maturity of three months or less. The carrying
amount of these assets approximates their fair value.
All commercial paper investments have a maturity of less than three months and the carrying value approximates the fair value.
19. Called up share capital
2007 2006
Number £m Number £m
Authorised:
Ordinary shares of 113⁄7US cents each (2006: 10 US cents) 68,250,000,000 4,875 78,000,000,000 4,875
B shares of 15 pence each 66,600,000,000 9,990 ––
Ordinary shares allotted, issued and fully paid:(1)
1 April 66,251,332,784 4,165 68,380,866,539 4,286
Allotted during the year 118,241,919 7 120,466,245 7
Consolidated during the year(2) (8,283,879,405) – ––
Cancelled during the year ––(2,250,000,000) (128)
31 March 58,085,695,298 4,172 66,251,332,784 4,165
B shares allotted, issued and fully paid: (2)(3)
1 April –– ––
Issued during the year(2) 66,271,035,240 9,941 ––
Redeemed during the year(3) (38,102,969,449) (5,715) ––
Converted to deferred shares and subsequently cancelled during the year(3) (28,036,064,426) (4,206) ––
31 March 132,001,365 20 ––
Notes:
(1) At 31 March 2007, the Group held 5,250,617,951 (2006: 6,132,757,329) treasury shares with a nominal value of £305 million (2006: £353 million). The market value of shares held was £7,115 million
(2006: £7,390 million).
(2) On 30 May 2006, Vodafone Group Plc announced a return of capital to shareholders via a B share scheme and associated share consolidation. At the Extraordinary General Meeting of the Company held
on 25 July 2006, shareholders approved the scheme, with a B share of 15 pence issued for each existing issued ordinary share held at the close of business on 28 July 2006 and the consolidation of
existing ordinary shares on the basis of 7 new ordinary shares for 8 existing ordinary shares. On 31 July 2006, the new ordinary shares were admitted to the London Stock Exchange official list, and
commenced trading. A total of 66,271,035,240 B shares were issued on that day, and 66,271,035,240 existing ordinary shares of 10 US cents each were consolidated into 57,987,155,835 new ordinary
shares of 113⁄7cents each.
(3) B shareholders were given the alternatives of initial redemption or future redemption at 15 pence per share or the payment of an initial dividend of 15 pence per share.
The initial redemption took place on 4 August 2006 with future redemption dates on 5 February and 5 August each year until 5 August 2008 when the Company expects to exercise its right to redeem
all B shares still in issue at their nominal value of 15 pence. B shareholders that chose future redemption are entitled to receive a continuing non-cumulative dividend of 75 per cent of Sterling LIBOR
payable semi-annually in arrears until the B shares are redeemed. The continuing B share dividend is shown within financing costs in the income statement. The B shares which received an initial
dividend immediately converted to deferred shares and all outstanding deferred shares were redeemed on 7 August 2006 for a total consideration of 1 pence and subsequently cancelled. In relation to
the ordinary shares held as treasury shares, the Company elected to receive a B share initial dividend, which was subsequently waived. B shareholders are only entitled to receive notice of (or attend,
speak or vote at) any general meeting if the business includes a resolution for the winding up of the Company. If the Company is wound up, the holders of the B shares are entitled, before any payment
to the ordinary shareholders, to repayment of the amount paid up on each B share together with any outstanding entitlement to the B share continuing dividend.
By 31 March 2007, total capital of £9,004 million had been returned to shareholders, £5,713 million by way of capital redemption and £3,291 million by way of initial dividend (note 21). The
outstanding B share liability at 31 March 2007 has been classified as a financial liability and is disclosed within long term borrowings. A transfer of £9,004 million in respect of the B shares has been
made from retained losses (note 23) to the capital redemption reserve (note 21). The redemptions and initial dividend are shown within cash flows from financing activities in the cash flow statement.
Allotted during the year Nominal
value Net proceeds
Number £m £m
UK share awards and option scheme awards 86,791,709 5 120
US share awards and option scheme awards 31,450,210 2 41
Total for share option schemes and restricted stock awards 118,241,919 7 161
Cancelled during the year
During the 2006 financial year, 2,250,000,000 treasury shares were cancelled in order to comply with Companies Act 1985 requirements in relation to the
amount of issued share capital that can be held in treasury. No treasury shares were cancelled in the year ended 31 March 2007.