Annual Report 2008 in PDF - GKN

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120 Balance Sheet of GKN plc At 31 December 2008 GKN plc Annual Report 2008 2008 2007 Notes £m £m Fixed assets Investment in subsidiaries at cost Current assets 3 3,567 3,565 Amounts due from subsidiaries Current liabilities — Amounts due within one year 49 63 Amounts owed to subsidiaries (2,640) (2,709) Net current liabilities (2,591) (2,646) Total assets less current liabilities 976 919 Net assets Capital and reserves 976 919 Called up share capital 5 372 372 Share premium account 5 29 29 Profit and loss account 2, 4 575 518 976 919 The financial statements on pages 120 to 122 were approved by the Board of Directors and authorised for issue on 25 February 2009. They were signed on its behalf by: Sir Kevin Smith, William C Seeger — Directors
Notes to the Financial Statements of GKN plc Financial Statements Balance Sheet Notes to the Financial Statements 1 Significant accounting policies and basis of preparation The separate financial statements of the Company are presented as required by the Companies Act 1985. They have been prepared under the historical cost convention and in accordance with applicable United Kingdom Accounting Standards and law. In accordance with FRS 1 (revised 1996) and FRS 8 the Company has taken advantage of the exemptions not to prepare a cash flow statement and not to disclose transactions with related parties. As the consolidated financial statements have been prepared in accordance with IFRS 7, the Company is exempt from the disclosure requirements of FRS 29. Other new accounting standards issued by the Accounting Standards Board and effective from 1 January 2008 have had no impact on the financial statements of the Company. The principal accounting policies are summarised below. They have been applied consistently in both years presented. Investments Fixed asset investments in subsidiaries are shown at cost less provision for impairment. Treasury shares GKN shares which have been purchased and not cancelled are held as treasury shares and deducted from shareholders’ equity. Share-based payments Equity-settled share-based payments are measured at fair value at the date of grant. The Company has no employees. Equity-settled share-based payments that are made available to employees of the Company’s subsidiaries are treated as increases in equity over the vesting period of the award, with a corresponding increase in the Company’s investments in subsidiaries, based on an estimate of the number of shares that will eventually vest. Profit and loss account Interest income is recognised using the effective interest method. Dividend income is recognised when the right to receive payment is established. Current tax is recognised in the profit and loss account unless items relate to equity. Dividends The annual final dividend is not provided for until approved at the Annual General Meeting whilst interim dividends are charged in the period they are paid. 2 Profit and loss account As permitted by section 230 of the Companies Act 1985 the Company has elected not to present its own profit and loss account for the year. The profit for the year ended 31 December 2008 was £151 million (2007 – £162 million). Auditors’ remuneration for audit services to the Company was £0.7 million (2007 – £0.6 million). 3 Fixed asset investments 2008 2007 £m £m At 1 January 3,565 3,559 Additions 2 6 At 31 December 3,567 3,565 The addition in 2008 and 2007 represents the increase in the investment in subsidiaries attributable to the recognition of the share-based payment arrangements over the Company’s shares. Principal subsidiary and joint venture companies, the investments in which are held through intermediate holding companies, are shown on pages 124 and 125. www.gkn.com 121
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GKN plc Annual Report and Accounts
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Our Objective GKN is committed to p
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2008 Performance* Group results sig
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Although we expect 2009 to be a ver
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Constant velocity joints (CVJs) rev
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Off-highway driveshaft Blended wing
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Strategy and business objectives Th
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Operating cash flow performance of
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Restructuring and impairment costs
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2008 2007 Tax charge analysis % % W
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Overseas pensions The principal cou
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GKN received the prestigious Nissan
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GKN Driveline manufactures across a
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2008 2007 GKN Driveline £m £m Sal
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Continuing evolution of powder meta
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Despite a £6 million positive impa
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GKN OffHighway is a first tier supp
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Trading profit of subsidiaries of
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In January 2009 GKN completed the a
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Divisional strategy GKN Aerospace
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Financing The following section des
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Competitive markets and competition
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Living the Values GKN is a group of
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Delivering advanced technology Deli
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Engaging more fully with our employ
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Accident frequency rate (AFR) Numbe
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Contributing to our communities We
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Andrew Reynolds Smith (42) Chief Ex
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Dividend An interim dividend of 4.5
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On joining the Board, a Director re
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Directors’ attendance record The
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Audit Committee Report Role of the
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Directors’ Remuneration Report Ro
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The companies making up the compara
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The arrangements for providing reti
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Governance Directors’ Remuneratio
Page 73 and 74: Details of the options over GKN sha
Page 75 and 76: Governance Share interests The bene
Page 77 and 78: Independent Auditors’ Report to t
Page 79 and 80: Consolidated Statement of Recognise
Page 81 and 82: Consolidated Cash Flow Statement Fo
Page 83 and 84: charges relating to the Group-wide
Page 85 and 86: Financial Statements Notes to the F
Page 89 and 90: 2 Segmental analysis continued Prim
Page 91 and 92: 3 Operating profit continued (v) Au
Page 93 and 94: 3 Operating profit continued (c) Am
Page 95 and 96: 5 Taxation continued Financial Stat
Page 101 and 102: 11 Goodwill and other intangible as
Page 103 and 104: 11 Goodwill and other intangible as
Page 105 and 106: 14 Other receivables and investment
Page 107 and 108: 18 Net borrowings continued Financi
Page 111 and 112: Financial Statements 19 Financial r
Page 115 and 116: 24 Acquisitions There were no acqui
Page 117 and 118: 26 Post-employment obligations Fina
Page 119 and 120: 26 Post-employment obligations cont
Page 123: Independent Auditors’ Report to t
Page 127 and 128: Group Financial Record For the year
Page 129 and 130: OffHighway GKN OffHighway Ltd GKN W
Page 131 and 132: Unsolicited mail GKN is obliged by
Page 133 and 134: Contact Details GKN plc PO Box 55 I
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