8 Share capital
| 2008 | 2007 | |||||
|---|---|---|---|---|---|---|
| No. ’000s | £’000s | No. ’000s | £’000s | |||
| Authorised: | ||||||
| Ordinary shares of 5p each | 60,000 | 3,000 | 60,000 | 3,000 | ||
| Issued and fully paid: | ||||||
| At the beginning of the year | 42,802 | 2,140 | 42,520 | 2,126 | ||
| Exercise of share options | 202 | 10 | 282 | 14 | ||
| At the end of the year | 43,004 | 2,150 | 42,802 | 2,140 |
The Company has one class of ordinary share of 5p each (‘shares’) which carries no rights to fixed income. All shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All shares rank equally with regard to the Company’s residual assets.
No member shall however be entitled to vote at any general meeting in respect of any share held by him if any call or other sum then payable by him in respect of that share remains unpaid or if a member has been served with a restriction notice (as defined in the Articles) after failure to provide the Company with information concerning interests in those shares required to be provided under the Companies Acts.
Shares
The shares of the Company issued during the year are shown below. Details of employee share option schemes referred to are given later in this note.
No shares were issued in respect of options exercised under the Company’s 1988 Scheme (2007: 12,625 shares for a total consideration of £21,589).
202,007 shares were issued in respect of options exercised under the Company’s 1995 Scheme for a total consideration of £249,200 (2007: 269,133 shares for a total consideration of £159,207). Some options exercised under the 1995 Scheme were settled on a net basis.
No shares were issued in respect of the ESOP 2007, the SAYE or the 2005 Plan (2007: nil).
Share options
Details of the Company’s share options scheme are set out in note 22 of the consolidated financial statements.
Details of the options outstanding under the 1995 Scheme, the ESOP 2007, the SAYE scheme and the 2005 Plan and the respective exercise prices are shown in note 26 of the consolidated financial statements.
The weighted average share price at the date of exercise for share options exercised during the year was £9.87 (2007: £13.61). The options outstanding at 31 December 2008 had a weighted average exercise price of £6.04 (2007: £6.39) and a weighted average remaining contractual life of 2.1 years (2007: 1.4 years). The total equity-settled share-based payments expense recognised by the Company during the year was £2.3m (2007: £1.7m) and the expense recognised for cash settled share-based payments was a credit of £0.3m (2007: charge of £0.2m).
Own shares
Own shares at cost represent 840,864 (2007: 752,169) shares in the Company held in the Morgan Sindall Employee Benefit Trust (‘the Trust’) in connection with the ESOP 2007 and certain share incentive schemes as detailed in the directors’ remuneration report. The trustees of the Trust purchase the Company’s shares in the open market with financing provided by the Company on the basis of regular reviews of the share liabilities of the relevant schemes. A total of 840,864 (2007: 615,766) shares were unallocated at the year end and dividends on these shares have been waived. The cost of shares expected to be awarded is charged over the three year period to which the award relates. Based on the Company’s share price at 31 December 2008 of £5.42 (2007: £10.39), the market value of the shares was £4,557,483 (2007: £7,815,036).