Wolseley Annual Report 2009
Notes to the company financial statements
Year ended 31 July 2009
9. Reconciliation of movements in equity shareholders’ funds
| 2009 £m |
2008 £m |
|
|---|---|---|
| Opening shareholders’ funds | 2,575 | 2,842 |
| Issue of share capital of £0.25 each | 56 | – |
| Issue of share capital of £0.10 each | 20 | – |
| Share premium on new share capital subscribed | 203 | 4 |
| New share capital subscribed | 720 | – |
| Purchase of own shares by employee benefit trust | (5) | – |
| Profit for the period | 794 | (61) |
| Dividends | – | (215) |
| Equity-settled employee share options | 9 | 5 |
| Closing shareholders’ funds | 4,372 | 2,575 |
On 1 April 2009 the Company issued 225 million ordinary 25 pence shares by way of a private placing at 120 pence per share.
On 2 April 2009 the Company reorganised its share capital. The 886,988,540 ordinary 25 pence shares then in issue were split into 886,988,540 ordinary 1 penny shares and 886,988,540 deferred 24 pence shares. The 1 penny shares were then consolidated into 88,698,854 ordinary 10 pence shares.
On 21 April 2009 the Company issued 195,137,478 ordinary 10 pence shares by way of an 11 for 5 rights issue at a price of 400 pence per share.
Ordinarily, the excess of the net proceeds over the nominal value of the share capital issued would be credited to a non-distributable share premium account. However, the rights issue was effected through a structure which resulted in the excess of the net proceeds over the nominal value of the share capital issued being recognised within retained earnings under Section 131 of the Companies Act 1985.
The share placing and rights issue generated net proceeds to the Company of £994 million after costs of £52 million and excluding shares purchased by the Employee Benefit Trusts.