23 Reserves
| Share capital £m |
Share premium account £m |
Capital redemption reserve £m |
Reserve for own shares held £m |
Cash flow hedging reserve £m |
Retained earnings £m |
Total equity £m |
|
|---|---|---|---|---|---|---|---|
| Balance at 1 January 2007 | 2.1 | 26.2 | 0.6 | (3.4) | (0.8) | 117.2 | 141.9 |
| Total recognised income and expense | – | – | – | – | (1.4) | 38.8 | 37.4 |
| Share-based payments | – | – | – | – | – | 1.7 | 1.7 |
| Issue of shares at a premium | – | 0.1 | – | – | – | – | 0.1 |
| Deferred tax (liability) on | |||||||
| share-based payments | – | – | – | – | – | (0.7) | (0.7) |
| Own shares acquired in the period | – | – | – | (2.1) | – | – | (2.1) |
| Dividends paid: | |||||||
| Final dividend – 2006 | – | – | – | – | – | (8.4) | (8.4) |
| Interim dividend – 2007 | – | – | – | – | – | (4.2) | (4.2) |
| Balance at 31 December 2007 | 2.1 | 26.3 | 0.6 | (5.5) | (2.2) | 144.4 | 165.7 |
| Balance at 1 January 2008 | 2.1 | 26.3 | 0.6 | (5.5) | (2.2) | 144.4 | 165.7 |
| Total recognised income and expense | – | – | – | – | (0.1) | 44.6 | 44.5 |
| Share-based payments | – | – | – | – | – | 2.3 | 2.3 |
| Issue of shares at a premium | – | 0.3 | – | – | – | – | 0.3 |
| Exercise of share options (note 22) | 0.1 | – | – | 1.9 | – | (1.9) | 0.1 |
| Deferred tax (liability) on | |||||||
| share-based payments | – | – | – | – | – | (0.8) | (0.8) |
| Own shares acquired in the period | – | – | – | (2.8) | – | – | (2.8) |
| Dividends paid: | |||||||
| Final dividend – 2007 | – | – | – | – | – | (11.9) | (11.9) |
| Interim dividend – 2008 | – | – | – | – | – | (5.1) | (5.1) |
| Balance at 31 December 2008 | 2.2 | 26.6 | 0.6 | (6.4) | (2.3) | 171.6 | 192.3 |
Share premium account
The share premium account represents the difference between the fair value of consideration received and the nominal value of the shares issued.
Capital redemption reserve
The capital redemption reserve was created on the redemption of preference shares in 2003.
Reserve for own shares held
The shares are held as ‘treasury shares’ and represent the cost of shares to Morgan Sindall plc purchased in the market and held by the Trust to satisfy options under the Group’s share incentive schemes (note 26).
The number of shares held by the Trust at 31 December 2008 was 840,864 (2007: 752,169).
Cash flow hedging reserve
Under cash flow hedge accounting, movements on the effective portion of the hedges are recognised through the hedging reserve, while any ineffectiveness is taken to the income statement.